Stock Groups

Benetton team working on premium of around 30% to buy out Atlantia

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© Reuters. FILE PHOTO – The Atlantia logo in Rome, Italy on October 5, 2020. REUTERS/Guglielmo Mangiapane

Francesca Landini & Stephen Jewkes

MILAN (Reuters). The Benetton family is working with Blackstone, an investment firm in the United States, to create a premium over Atlantia’s stock prices for the past six months. Three sources claimed that they are preparing a bid which could be accepted as soon as Wednesday.

Sources say the partners have considered an offer of 22 to 23 Euros per share. But, they cautioned that there was no definitive decision.

Although it would represent a substantial premium to the average six-month share price, this would still be an increase of only about 21.7 euro. It would also value Atlantia, in which the Benetton family owns 33%, at around 18.1-19.0billion euros ($19.7-$20.7billion).

The shares of the Italian infrastructure company have risen nearly 20% in just six months. This was when speculations first surfaced about an arrangement involving Global Infrastructure Partners, Brookfield, Florentino Perez (head of Spain’s ACS), and Brookfield.

Investors waited to see if the stock would be taken private, and it hit 22.5 euro on Monday.

Sources said the source suggested that “the offer could land within very short time, possibly even as early as Wednesday morning.”

Blackstone and Benetton Holding Company Edizione declined comment.

GRAPHIC – Atlantia’s bumpy ride https://fingfx.thomsonreuters.com/gfx/mkt/byvrjbylxve/ATLANTIA_BID_WAR.png

Edizione & Blackstone are seeking to delist Atlantia in order to protect it from rival suitors. Last month, the Benettons approached them with an offer to purchase the group and give Atlantia’s concessions on the motorways to Perez.

Sources have indicated that GIP, Brookfield, and the Spanish tycoon have entered a “wait and see” mode following the rejection of their offers by the Benetton family, and Atlantia’s long-time investors, CRT, and GIC.

Atlantia’s takeover offer is coming as the company prepares for 8 billion euro from the sale to the Italian motorway division. The deal is intended to resolve a political conflict that was triggered by 2018’s collapse of an Italian motorway bridge.

This spotlight also places Alessandro Benetton (58), who was elected chairman of Edizione in January, tightening family control over its investments.

Atlantia has parted ways with Autostrade per l’Italia. However, Atlantia will still manage airports in Italy, France and motorways throughout Europe and Latin America. Telepass, a digital toll payment service, is also being operated by Atlantia.

It has so far remained silent about the most recent developments. However, the government of Italy has special vetting power ‘golden,’ which allows it to inspect strategic assets like airports in the country and the owners.

($1 = 0.9184 euro)

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