September 22, 2007 (LPAC)--European Union anti-trust authorities warned Spain and Italy yesterday that they faced legal actions and fines for protecting their utilities and highway companies, respectively, from foreign bids, according to the Financial Times.

The EU accused Spain of breaking EU law by imposing conditions on a bid by Enel and Acciona for joint control of Endesa, Spain's largest power company.

The EU also ordered Italy to remove obstacles to a takeover of highway operator Atlantia by Abertis Infraestructures of Spain. Italy's Autostrade abandoned its plan to merge in December 2006, but Abertis revived the plan in February, and now the EU is threatening to punish Italy if it does not change its national law on takeovers to confirm to the EU dicatates by Oct. 1.

Under EU rules, the commission has exclusive authority to review large takeovers in 27 member nations.