ACS’ subsidiary Cobra has won a contract worth 126 million euros to build various electricity transmission lines in Brazil, boosting its portfolio of these projects in that country to 3 billion euros.
Italian motorway and airports operator Atlantia is considering a tie-up with Spain’s Abertis by launching a tender offer. The transaction is valued at some 15-16 billion euros, taking into account the current market value of Abertis. The offer will be made partly in cash and partly in Atlantia shares, with the end result a merger between the two companies.
Telefónica’s share price has made a strong recovery so far this year and is now trading around 10,3 euros, meaning it has gained no less than 31% from last year’s minimum levels. New executive chairman Jose María Álvarez-Pallete has played a big part in this comeback.
Ailing department store chain El Corte Ingles lived splendidly before Amancio Ortega, Zara’s founder, began his rapid journey through the world of fashion retailing both at home and abroad. Galicia’s Inditex group has not stopped growing in sales and store openings.
S&P has cut its outlook for Banco Popular to Negative from Stable (where it placed the bank on February 9), which opens the door to new rating trims. At the same time, Popular will hold its AGM today where the 2016 accounts (losses of €3.485 billion) are due to be approved by shareholders,
The Colombian government has finally decided to liquidate the electricity distributor Electricaribe, controlled by Gas Natural Fenosa. The company was intervened by the government last November, as a temporary preventitive measure.
Sonia Ruiz de Garibay (GVC Gaesco) |Spain’s hotel chains NH Hoteles and Meliá are reaping the benefits of their restructuring and the adjustments made in the areas of operating costs and debt reduction. So these stocks are a good bet for locking in profits thanks to their attractive trading ratios.
Emilio Saracho, who will take over the reins of Banco Popular in less than 15 days, may not want to go ahead with Project Sunrise, which consists of setting up a small ‘bad bank’ into which € 6 billion worth of property loans would be transferred. The new chairman may have a Plan B.
The environment for European banks is changing for the better. The sector’s fundamentals are improving and Bankinter sees the recent ‘impasse’ in their trading performance as a buy oportunity.
As a result of the global financial crisis, funding conditions for SMEs in the peripheral European countries tightened considerably. But following the implementation of expansionary monetary policies, including TLTROs and negative interest rates, has loan activity improved for small businesses in countries like Spain, where they are key drivers for economic growth and job creation.