Stephen Jewkes

MILAN (Reuters) –After discussions with Atlantia’s principal shareholder, Global Infrastructure Partners and Brookfield Infrastructure (NYSE 🙂 discussed a possible acquisition of the Italian airport and road operator Atlantia.

Atlantia shares, with a market capitalisation exceeding 16 billion euro ($17.5billion), rose 10% Thursday after the company found itself in an alleged bidding war. This could also include Florentino Perez (president of Real Madrid soccer team) and the Benetton family.

Both funds specialize in infrastructure investment and confirmed that they had met Edizione’s family on March 23rd and 23, respectively, and submitted the proposal to Edizione the following day, March 30. Edizione owns 33% of Atlantia.

Perez’s ACS and the funds entered into an agreement under which Atlantia, a Spanish construction company, could purchase a majority of Atlantia’s concessions for toll roads if there was an offer.

Three sources close to the situation said that the Benetton family and Blackstone investment fund (NYSE:), as well as other Atlantia long-time investors like the Italian banking foundation CRT, are looking into a counter-move for the purchase of the company.

Brookfield and GIP cautioned against bidding for companies with enterprise values exceeding 45 billion euro, once the debt has been accounted for.

They stated that the consortium had not yet made a decision about a potential offer to Atlantia, and they have not reached any agreements with Atlantia or its shareholders.

The Benetton family could be a strong opponent, as they have increased their investment beyond just the clothing line for which it is most well-known.

This year Alessandro Benetton was elected chairman of Edizione, tightening its grip on investments. Edizione stated at that time that it considered its Atlantia investment strategic.

Perez and Benettons have already been linked by their ownership of Spanish highway operator Abertis.

Perez, through ACS, had attempted to acquire Atlantia’s Italian motorway operator Autostrade per l’Italia previously but failed to get the support from the Italian government.

Atlantia sold the unit to CDP, an Italian state lender and other allies. It was the center of a dispute between the government and Atlantia following the 2018 fatal collapse of a bridge. The deal will see it pocket 8.3 billion euros this year.

($1 = 0.9163 euros)