Eon, the German utility company, on Tuesday agreed to comply with Swedish Securities Commission takeover rules after a week of refusing to accept they were applicable to a foreign company.

Eon's purchase of shares in Sydkraft last week increased its voting rights to 42.8%. Swedish Stock Exchange rules call for mandatory bids by a company once it acquires over 40% in a Swedish listed target. Eon, however was claiming as a foreign company not listed on the Swedish stock market that it was not bound by the Swedish stock market rules and did not have to make an offer for Sydkraft. The alternative, according to the rules, would be to reduce its stakeholding in the Swedish listed energy company to below 40%.