British hedge fund TCI Fund Management said Tuesday that it strongly supports Atlantia SpA's (ATL.MI) takeover bid for Spanish toll-road operator Abertis Infraestructuras SA (ABE.MC).
"We believe the combination of Abertis and Atlantia will result in the creation of a significant cash generative, diversified and growing global infrastructure operator," said TCI's Chief Executive and Chief Investment Officer Christopher Hohn.
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TCI, which owns almost 2.7% of Abertis's shares, has a reputation for activism and is known for helping topple Deutsche Boerse's chairman and chief executive during an attempted merger with the London Stock Exchange in 2005.
Atlantia on Monday received regulatory approval for the bid it launched in May, which values Abertis at around 16.3 billion euros ($19.22 billion). Abertis's board now has until Oct. 24 to consider the offer.
However, several Spanish media outlets have reported that Prime Minister Mariano Rajoy is reluctant to let Abertis fall out of Spanish control.
Other possible buyers include Madrid-based construction company Actividades de Construccion y Servicios SA (ACS.MC), or ACS, which has said previously that it is considering launching a counterbid for Abertis through its German subsidiary Hochtief AG (HOT.XE).
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(END) Dow Jones Newswires
October 11, 2017 04:14 ET (08:14 GMT)