Europe News

Atlantia says concession stripping announcement may damage investors

MILAN (Reuters) - Italy's Atlantia ATL.MI said on Thursday the way the Italian government had announced it would revoke a motorway concession from one of its units following a deadly bridge collapse could damage investors in the infrastructure group.

Italian Prime Minister Giuseppe Conte said on Wednesday after an emergency cabinet meeting that the government would not await the outcome of a criminal inquiry into the motorway collapse that killed 38 people this week before moving to strip Autostrade of its toll concession.

Atlantia, which has previously said it correctly met all maintenance obligations, said the announcement had come before it received any official complaints and before the causes of the disaster in the port city of Genoa were established.

Atlantia said Autostrade had a right to a compensation if the concession was revoked or terminated early. However, “the modality of such announcement may have impacts on the Atlantia shareholders and bondholders.”

Reporting by Valentina Za; Editing by Adrian Croft