Italy State Lender Backs Construction Plan After Natixis Snag
(Bloomberg) -- Italy's state lender Cassa Depositi e Prestiti SpA has given its backing to a 1.5 billion-euro ($1.7 billion) plan to consolidate the country's construction sector after clearing a last-minute hurdle over the role of Natixis SA.
After two board meetings and overnight talks, Italy's biggest construction company Salini Impregilo SpA and Cassa Depositi have signed an investment deal that will throw a lifeline to struggling builder Astaldi SpA and to a number of smaller companies, Salini said in a statement on Thursday afternoon.
Talks over the plan, dubbed Progetto Italia, or Project Italy, were bogged down earlier this week over concerns about a margin loan Salini holds with Natixis, risking to halt months of negotiations, according to the people familiar with the talks. The final step is the approval of Astaldi's board, the Ansa news agency reported.
Natixis had provided a loan to Salini Impregilo's controlling shareholder Salini Costruttori, secured by Salini Impregilo shares. CDP was unaware of the loan, according to people, who asked not to be named discussing confidential negotiations. The state lender was concerned that exercising the guarantee could have altered the ownership of Salini Impregilo, the people said.
Earlier on Thursday, Salini was still working with banks on the final details of the financing agreements, one of the people said. Cassa Depositi's support is crucial to the project because it's expected to contribute as much as 250 million euros. Its board decided to support Project Italy at a meeting Thursday.
Read more about the $1.7 billion bet to rebuild Italy's construction sector
Representatives for Cassa Depositi e Prestiti, Salini Impregilo and Natixis declined to comment.
Italian daily Il Sole 24 Ore reported earlier that CDP's board is backing the project.
To contact the reporters on this story: Chiara Albanese in Rome at calbanese10@bloomberg.net;Antonio Vanuzzo in London at avanuzzo@bloomberg.net
To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, ;Jerrold Colten at jcolten@bloomberg.net, Alessandro Speciale, Dan Liefgreen
©2019 Bloomberg L.P.
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