The Benetton family’s Atlantia SpA and Spanish builder ACS reached a preliminary agreement to avoid a bidding war for Abertis Infraestructuras SA that would see the rival suitors make an offer for the toll-road operator, according to people familiar with the matter.
Atlantia and Actividades de Construccion y Servicios SA plan to create a co-owned holding company that would control Spain’s Abertis after a bid based on one already put forth by ACS’s German arm worth about €18.2bn ($22.4bn), the people said, asking not to be identified because the deliberations are private. The agreement doesn’t currently include any plan to split up Abertis’s sprawling assets, they said.
Negotiations between Atlantia and ACS progressed over the weekend, though no final agreement has been reached and the deal could still be adjusted or fall apart, the people said. Atlantia chief executive officer Giovanni Castellucci and ACS chairman Florentino Perez were directly involved, they said. A spokesman for Atlantia declined to comment as did Abertis. A spokesman for ACS could not provide immediate comment.
In an unexpected twist last week in the months-long struggle for control of Abertis, ACS and Atlantia said they were in early talks on the bidding process. While they didn’t provide details, the move signalled a drawn-out tussle for Abertis might be averted. Real Madrid chairman Florentino Perez’s ACS in October topped the Italian company’s €16.3bn ($20.1bn) offer to acquire Abertis with its own cash-and-share bid.
Rome-based Atlantia’s bid was halted to give Spanish authorities time to review Perez’s counter proposal, which was for an offer to be made through its German arm, Hochtief AG.
Approval for his plan came through yesterday from Spain’s markets regulator. Atlantia’s offer was approved earlier this year.
Abertis investors will be asked today at an annual general meeting in Madrid to approve a dividend of €0.40 a share. ACS’s Hochtief has said it will modify its offer to reflect the payout.
Atlantia shares fell 0.1% to €27.81 at 1:33pm in Milan trading. ACS rose 0.3% to €30.31 in Madrid while Abertis shares fell 0.2% to €18.59.
Atlantia and ACS covet the 5,000 miles of highways operated by Abertis. Spain’s government favours a deal that would prevent Abertis from falling under foreign ownership, people familiar with the matter have said.