A takeover battle for Atlantia

Two of the world’s largest alternative asset managers are “duking it out” for control of the Italian airports and motorways group Atlantia, says Lex in the Financial Times. In one corner, Brookfield Asset Management is working on a deal with Global Infrastructure Partners (GIP) and Spanish construction tycoon Florentino Pérez. Their proposal would see Brookfield and GIP buy Atlantia and sell its controlling stake in Spanish toll-road operator Abertis to Pérez’s engineering company ACS, which already owns just under half the venture.

That and other asset sales – most significantly the already scheduled sale of its Italian motorway unit next month – would reduce the cost from around €50bn including debt to around €20bn, says Lisa Jucca on Breakingviews. But the Benetton family – who own a third of Atlantia and have previously “locked horns” with Pérez when they ended up splitting Abertis – are unlikely to play along. They are said to be teaming up with Blackstone on their own bid to take Atlantia private. “Sorting out the finances may be the easiest part of the takeover battle.”

Financial considerations aren’t the only thing that will have an impact on the outcome, agrees Chris Hughes on Bloomberg. The takeover offer is also likely to be closely scrutinised by the government. Atlantia’s assets are mostly outside Italy, but it is one of the country’s largest listed firms and “it’s unlikely politicians will relish it being broken up”. That kind of political pressure “might play to Blackstone’s advantage if it aims to keep Atlantia intact, especially if the Benettons also want to keep the company as it is”.