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Corporate Finance Elen's Financial Plan The Firm, Essay

Corporate Finance

ELEN's Financial Plan

The firm, which was conceptualized in 1944 as EMPRESA changed to Endesa, in the year 1997. In 2006-2007, both by Enel in Italy and Gas natural targeted Endesa. E.ON, located in Germany also had interest in Endesa. Despite its smaller size, Gas Natural had backup from the then socialist government. After E.ON offered 38.75 pounds to Endesa for each share, they took over the company, among others like SNET. Acciona and Enel jointly took over to control Endesa. Enel however was the higher bidder, with a share of 67.05% of the entire share capital. In 2009, Enel bought the shares of Acciona, assuming ownership with over 92% share capital. It was agreed that some of the assets owned by Endesa, would be sold to Acciona. According to Reuters (February, 21) The Enel Corporation was to get funding from different banks, amounting to eight billion, which was to assist in the financing of the company's deals.

The C.E.O of the Enel Company was optimistic about the firm's growth possibilities even during the harsh economic situations. The company's consolidated accounts indicated that the firm's revenue had increased with over 40% increase, due to its strategic business plans, that included the operation of different geographical areas, including the business transactions that were to be done abroad. The firm had a financial plan of generating income, through the new dividend policy, and they had the plan to dispose off most of the assets that were non-strategic. The proper management of the investment plans and the generation of a growing cash flow were the strategies that were to be implemented to recover their stand in the market and economy. This was meant to allow the company realizes its goals and business objectives. Already there was improvement, as proved in 2009 when the subsidiary company, had within months, gained over 300 million Euros. The increase was related to the increase in margins of the divisions of the company.

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