Hochtief Launches $22 Billion Bid for Spain's Abertis -- Update
18 October 2017 - 5:10PM
Dow Jones News
By Nathan Allen
Germany's Hochtief AG on Wednesday made a EUR18.6 billion ($21.9
billion) offer to buy Abertis Infraestructuras SA, gatecrashing an
effort by Italy's Atlantia SpA to acquire the Spanish toll-road
operator.
Hochtief -- a builder of infrastructure in the U.S. and Europe,
which is controlled by Spain's Actividades de Construccion y
Servicios SA -- is offering Abertis shareholders EUR18.76 a share
in cash, or 0.1281 of a Hochtief share, or a mixture of both.
Barcelona-based Abertis, which operates toll roads in Europe and
South America, didn't immediately comment on the bid. Abertis is
also yet to pass judgement on a EUR16.50 a share bid from Italian
highway operator Atlantia in May.
Atlantia didn't immediately comment Wednesday.
Abertis shares rose 6.7% in late European trading and Hochtief
ticked up 1.3%, while Atlantia fell 1.4%.
A combination of Abertis and Atlantia was approved by the
Spanish market regulator and European competition authorities
earlier this month. It has also been publicly backed by two big
Abertis shareholders -- British activist investor TCI Fund
Management and Spanish conglomerate Grupo Villar Mir SAU.
However, reports in the Spanish media have suggested the
government is reluctant to let Abertis fall out of Spanish control
and favors a local buyer.
Given Hochtief is more than 70% owned by Spain's Actividades de
Construccion y Servicios, or ACS, its bid could be favored.
ACS is one of Spain's largest construction firms with operations
in more than 50 countries and revenue last year of EUR31.98
billion. It was formed in 1997 through the merger of two smaller
firms and is run by Florentino Perez, who is also chairman of
Spanish soccer giant Real Madrid.
Despite its heavyweight backing, the deal would be a big move
for Hochtief, which with a market capitalization of EUR9.49 billion
is considerably smaller than Abertis, which has a market value of
EUR16.88 billion. It is also smaller than Atlantia, which is valued
at EUR22.49 billion.
(END) Dow Jones Newswires
October 18, 2017 11:55 ET (15:55 GMT)
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