By Maiya Keidan and Stefano Bernabei
LONDON/ROME (Reuters) - Activist hedge fund TCI Fund Management said it has submitted a complaint to the European Commission over "illegitimate expropriation" by the Italian government of Atlantia's motorways unit Autostrade per l’Italia.
TCI, an investor in Atlantia, said in its complaint that Italy's order that Atlantia sell down its stake in Autostrade "seriously threatened the fundamental principles of the EU Capital Market Union".
The move adds a new dimension to the battle over Autostrade, whose future has been in question ever since a motorway bridge it operated in the northern city of Genoa collapsed in mid-2018, killing 43 people.
The disaster exposed a record of management failure and fuelled heavy political pressure to strip the motorway concession from the powerful Benetton family that controls Atlantia through its 30% stake.
After months of dispute, the government reached a compromise that left Autostrade with the concession but forced Atlantia to hand over control to state lender Cassa Depositi e Prestiti and allied investors.
However, TCI said the deal disregarded the rights of other investors in Atlantia. "If the government want to punish the Benetton family with a low price, it is punishing international investors, and this is illegal," Jonathan Amouyal, a partner at TCI Advisory Services, told Reuters.
"What we want is a fair process and a fair price. What we don't want is that Italy not respect the rule of law," he said, adding that he believed Autostrade's valuation was between 11-12 billion euros at pre-money equity value.
In a separate letter sent to the Italian Treasury on Wednesday, TCI said the government's actions had caused "significant losses" to international investors.
"The Italian government has repeatedly violated the principles of legal certainty, legitimate expectations and proportionality which are all key pillars of the Italian Constitution and the European Union," said the letter seen by Reuters.
TCI said in an earlier letter to the Treasury on Monday that the government had violated the principles of legal certainty and proportionality in its handling of Atlantia.