Bilbao''s Commercial Court Number 1 ruled on Wednesday to fully reject the lawsuit brought by the construction firm ACS against electricity company Iberdrola. The building firm was contesting two agreements reached by Iberdrola''s Board of Shareholders, which blocked them from entering the electrical company''s Board of Directors.

The sentence came following a trial held last week in Bilbao between both parties. At the hearing, Iberdrola claimed there was a conflict of structural and permanent interests for which ACS should not form part of the electricity company''s board of directors. For their part, ACS deny any conflict and defend their right to form part of the Board.

In his ruling, the judge said he "fully" accepted the case presented by Benito Arruñada on behalf of Iberdrola, in which he assured that were ACS to be present on the electricity firm''s board, "it would pose a serious conflict of interests for Iberdrola with regard to competition," and could lead to information being leaked.

ACS is Iberdrola''s main shareholder, with a greater stake even than Bancaja and BBK, and is now responsible for 20% of the electricity firm''s share capital.

ACS intends to lodge an appeal with the Provincial Court of Biscay against Wednesday''s ruling which fully rejected their claim to be allowed a place on the Board of electricity firm Iberdrola.