Italy, Benettons at Impasse on Autostrade as Deadline Looms

(Bloomberg) -- Negotiations between Italy’s government and the Benetton family to resolve a long-running dispute over toll-road licenses are at a standstill, with little sign of a solution ahead of an end-June deadline, people familiar with the talks said.

The government of Prime Minister Giuseppe Conte hasn’t responded to a settlement offer by Autostrade per l’Italia SpA, Italy’s main toll-road operator, according to the people, and it hasn’t clarified what other conditions would make a deal acceptable.

Shares in Atlantia SpA, the Benetton holding which controls Autostrade, were little changed at 15.43 euros at 11:36 a.m. in Milan, giving the company a market value of 12.8 billion euros ($14.5 billion).

Conte threatened to strip Autostrade of its highway concession after 43 people died in a bridge collapse in 2018, though he’s aware this could start long and potentially costly litigation.

While Atlantia has said it would welcome a new minority stakeholder, Italian infrastructure fund F2i SGR SpA has been pushing to acquire control, the people said, asking not to be named because discussions are private.

F2i has been working on a resolution to the dispute with state lender Cassa Depositi e Prestiti SpA. As part of the plan, which is under consideration by the government, F2i and CDP would each buy a 30% stake in Autostrade, according to the people.

The fund led by Chief Executive Officer Renato Ravanelli has hired Intesa Sanpaolo SpA’s Banca IMI as an adviser. Some of F2i’s investors, including pension and social security funds, back the Autostrade bid, the people said.

Postal service Poste Italiana SpA may take part in the F2i plan by investing in Autostrade through its Poste Vita unit, Il Sole 24 Ore reported Wednesday.

Deadline Looming

Hanging over the talks: a June 30 deadline. That’s the last day for Autostrade to hand back its license and sue the government after Italy changed some concession rules late last year to reduce penalties in case of revocation.

If no tentative agreement is reached before that date, Atlantia sees no option but to voluntarily renounce its license and start legal action, asking cash-strapped Italy for as much as 20 billion euros in damages, one of the people said. That compares with the roughly 6 billion euros the company would get if it were stripped of its concession by the government under the new rules.

Spokespeople for F2i, Atlantia and Autostrade declined to comment.

Conte has so far avoided taking a clear stance, though he has said there’s ample reason to cancel Autostrade’s license. He has to balance the demands of his coalition partners, with the anti-establishment Five Star Movement eager to show that those responsible for the bridge accident have been punished and the Democratic Party wary of the potential economic impact.

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