Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Atlantia investor urges Italy not to interfere in Autostrade sale

Published 04/18/2021, 06:27 AM
Updated 04/18/2021, 06:30 AM
© Reuters. FILE PHOTO: A view of the Autostrade per l'Italia headquarters

ROME (Reuters) - Atlantia investor and hedge fund TCI has urged Italy's government not to put any pressure on the Italian infrastructure group to strike a deal to sell its motorway business Autostrade, a letter seen by Reuters shows.

TCI's letter, dated April 12, asks the government to allow Atlantia to evaluate "independently and free from any political interference" an offer for Autostrade from Spanish infrastructure group ACS.

Autostrade, which manages half of Italy's motorway network, has been in the political crosshairs since the 2018 deadly collapse of a Genoa motorway bridge run by the company.

As part of a government-backed initiative to reclaim control of the motorways, Atlantia is in advanced talks with a consortium led by Italian state lender Cassa Depositi e Prestiti (CDP), which has presented a binding offer for Autostrade.

However, ACS has sent an expression of interest for Atlantia's 88% stake in Autostrade, which it values at between 9 billion and 10 billion euros ($12 billion), in a move that could foil the government's plans.

"Atlantia should be allowed to take the required time to consider the ACS offer," TCI said in the letter, adding that Rome should not make approval of Autostrade's economic and financial plan conditional on a deal with the CDP-led consortium.

Such a condition would be a "blatant violation of the principle of free movement of capital", TCI said.

The offer from the CDP and partners Macquarie and Blackstone (NYSE:BX) is based on an Autostrade valuation of 9.1 billion euros, which some Atlantia investors, including TCI, believe is too low.

On Sunday Italian newspaper La Stampa reported that U.S. investment firm Apollo and Italian group Toto Holding might also submit offers.

The Atlantia board has called a shareholder meeting on May 28 to examine the CDP-led bid.

© Reuters. FILE PHOTO: A view of the Autostrade per l'Italia headquarters

($1 = 0.8345 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.