Morgan Stanley's work for Electricidade de Portugal (EDP) has given the Portguese utility control of Spain's fourth largest power company despite only buying a minority stake.

Hidroelectrica del Cantabrico, advised by Merrill Lynch and Schroder Salomon Smith Barney, has been subject to a three-way bidding war for nearly a year. EDP, advised by Morgan Stanley, teamed up with Cajastur, the Spanish savings bank advised by Rothschild, to buy a 34.2% stake in the company.