It’s now official. Atlantia has launched a full takeover bid for Abertis worth 16.341 billion euros, implying a price per share of 16,50 euros. Payment will be made either in cash or via a share exchange.
Italian elections are likely to represent the next main European political risk. With anti-establishment sentiment running high and the euro increasingly seen as a major contributor to Italy’s structural problems, both themes will feature prominently in the campaign ahead of the next election.
After the Endesa takeover in the late 2000s, followed by the financial crisis and the Fukushima accident, Enel’s process to extract value from the Spanish utility transaction has been slow and painful. A diet was needed. Now it is starting to bear fruit with debt ratios and credit rating finally improving.
Fernando Rodríguez |The first quarter results from the Spanish banks have fuelled rises in the majority of their stock prices. But analysts are divided over the future market performance of a sector which is showing some lights, like a decline in provisions, but also a few shadows, such as weak profitability.
Hu Shuli via Caixin | U.S. President Donald Trump’s ambitious proposal to cut corporate and individual taxes is adding to the external uncertainties affecting China’s economy. It follows projections of a faster-than-expected pace of interest rate hikes by the U.S. Federal Reserve.
Telefonica’s net profit rose 42.2% to 779 million euros in the first quarter of 2017 from a year earlier. The 2016 results were reformulated mid-last year after the group decided to stop presenting its UK subsidiary O2 as a discontinued operation. Revenues from its Brazil and Latin American operations were the main earnings driver.
British prime minister Theresa May could put a cap on the increase in electricity and gas prices in the UK, while also cutting water and gas charges, if she is re-elected. This sort of measure could affect Iberdrola’s UK business, which accounts for 25% of group EBITDA.
The European Commission says that Spain continues to grow above the eurozone average and that this year GDP growth will exceed its highest pre-crisis level.
FCC the Spanish environmental services, infrastructure and water management company, majority owned by Carlos Slim, reported net profit of €21.4 million in the first quarter, contrasting with a loss of €-16.7 million in the same period last year.Gross interest-bearing debt now stands at €5,063 million, 28% less than at 31 March 2016. The backlog now totals €30.650 million, equivalent to more than five years’ revenues.
Just like big miners, European steel stocks have experienced a now 3-month correction since they peaked in mid February. More accurately, according to Carax-Alphavalue’s analysts “as a combined group, they offer a 6% upside potential with somewhat more if the downside on ThyssenKrupp could be set aside”. They also add that in markets which are “verging on the expensive”, steel stocks are “good value again”.