Germans must be ruing the day they stopped regarding Spain as just a holiday destination.

In the latest twist of a bitter, year-long saga, Germany's Eon looks likely to be squeezed out of its bid for Endesa, Spain's largest power group, by the late entry of Enel of Italy. When added to the holdings of big Spanish shareholders, Enel is building a big enough stake in Endesa to see off Eon without having to make a full takeover bid itself.