Abertis Shares Drop on Potential Joint Takeover Bid
08 Mars 2018 - 11:32AM
Dow Jones News
By Nathan Allen and Alberto Delclaux
Shares in Abertis Infraestructuras SA (ABE.MC) dropped Thursday
on news that its two suitors may team up for a joint takeover
offer, potentially squelching the bidding war that has driven
Abertis's share price up more than 35% since last March.
Actividades de Construccion y Servicios SA (ACS.MC) and Atlantia
SpA (ATL.MI)--until recently rivals in the tussle for
Abertis--confirmed that they have held talks in separate filings
sent to Spain's market regulator, the CNMV.
However, both companies said they haven't reached a definitive
agreement.
At 0926 GMT, Abertis shares traded 4.2% lower at 18.59 euros
($23.08), while shares in ACS and Atlantia were up 7.1% and 5%,
respectively.
Spanish newspaper Expansion had earlier reported that the two
bidders were considering a joint-ownership agreement under which
they would divide Abertis's Spanish and international assets among
themselves.
Both companies want to avoid driving Abertis's share price up
any higher and rendering their offers financially invalid,
according to Expansion.
"An agreement between both bidders, whatever the final shape of
the deal, eliminates the rivalry between them and hurts Abertis
shareholders," said analysts at Bankinter, which recommends that
investors reduce their stake in Abertis.
Since Atlantia submitted its initial bid of EUR16.3 billion in
May 2017, Abertis's share price has risen 35%, giving it a market
capitalization of EUR18.47 billion based on Wednesday's closing
price.
The bidding process has become bogged down amid tensions between
Spain's government, which is reportedly reluctant to let Abertis
fall into foreign control, and the CNMV.
After the CNMV approved Atlantia's bid, Spain's ministries
governing energy and public works weighed in to demand that the
regulator revoke its authorization of the deal until they completed
their own review.
ACS's rival bid of EUR18.6 billion, submitted via its German
subsidiary Hochtief AG (HOT.XE) in October, has yet to receive
approval from the regulator.
Both bids need the approval of the energy ministry, as Abertis
holds a majority stake in satellite communications operator
Hispasat, which the government considers a strategically important
national asset.
Write to Nathan Allen at nathan.allen@dowjones.com and Alberto
Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
March 08, 2018 05:17 ET (10:17 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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