European nations in takeovers scuffle

A European row over cross-border takeovers has escalated with France vowing to defend its energy sector and Italy saying the French protectionist model is doomed to failure.

The row was prompted by Enel, Italy's largest power company, daring to assume it could make a takeover bid for a French utility, sending it scuttling into the arms of the French Government.

EC president Jose Manuel Barroso has now warned European states against using nationalist rhetoric and creating walls against business mergers.