By Nina Kienle

Naturgy Energy Group's shares fell on Tuesday after its biggest investor said it ended takeover talks for a cooperation agreement with Abu Dhabi energy company, Taqa.

Shares at 1108 GMT, were 13% lower at EUR21.60.

CriteriaCaixa--the Spanish utilities company's biggest shareholder--said late Monday that talks with Taqa ended without reaching an agreement. The holding company added that it would continue to explore alternatives to secure Naturgy's targets and reiterated its commitment as a long-term investor in the company.

Meanwhile, weak gas demand is making Naturgy's contracts less competitive and the company might face a significant hit to its valuation if some customers switch to alternative energy sources, RBC Capital Markets analyst Fernando Garcia said in a research note to clients.

Australian fund IFM Investors--Naturgy's fourth largest shareholder--said it would be willing to design an alternative path for the future of the company between CriteriaCaixa and IFM, Spanish newspaper Expansion reported Tuesday, citing unnamed sources.

CriteriaCaixa, IFM and Naturgy didn't immediately respond to requests for comment.

Write to Nina Kienle at

(END) Dow Jones Newswires

06-11-24 0733ET