Expansión report: Autogrill-led bid for Aldeasa raises EU competition concerns

SPAIN. Leading Spanish financial newspaper Expansión yesterday reported that the European Commission is investigating the potential effects on competition of the takeover bid for Spanish airport retailer Aldeasa by Autogrill in partnership with Aldeasa’s lead shareholder Altadis.

The alliance leads the race for Aldeasa with a €33 a share offer for the Spanish company. That bid is yet to be approved by the Spanish stock market regulators. Earlier bids by the GEA consortium (€29 per share and subsequently rejected by the Aldeasa board) and Dufry (€31 per share) have gained that approval.

Autogrill, which also owns long-established travel retailer and catering company HMSHost, specialises in operating restaurants in transit areas such as airports and service stations. According to Expansión, the European Commission believes that Autogrill’s bid could result in a “supranational concentration of market control” which would not be covered by EU legislation. The report claimed that Autogrill has been asked to supply details of its bid.

If the Autogrill offer is cleared to proceed, Dufry and GEA must decide whether to raise their offers by 21 February. Sources close to the situation believe that the price may go as high as €38 a share.

Any valuation of Aldeasa is rendered more complicated – and risky – by the fact that Spanish airports authority AENA has said it will likely put out to tender Aldeasa’s Spanish duty free contracts that expire in 2006 (Madrid Barajas has been extended to 2012). If that happens, whoever owns Aldeasa will have to bid for those contracts against a likely influx of international competition.

CHRONOLOGY OF A TAKEOVER: HOW THE ALDEASA STORY HAS UNFOLDED TO DATE

Broker sells 1.8% of Aldeasa – 01/02/05

Aldeasa shares rise sharply on Autogrill bid – 31/01/05

Latest update: Aldeasa ownership in the balance as investors launch shock takeover bid – 13/12/04

Aldeasa takeover bid underlines private equity interest in upswinging market – 14/12/04

Altadis holds the key to Aldeasa sale as retailer’s share price closes on high; touted Imperial merger clouds picture – 15/12/04

Aldeasa shares close at near high; lead bidder says “no plans” to raise offer; politics the key say insiders – 16/12/04

Dufry parent Advent eyes Aldeasa bid – Spanish newpaper quotes ‘Dufry sources’ – 19/01/05

Advent International confirms interest in Aldeasa – 19/01/05

Shares in Altadis and Aldeasa rise as interest intensifies in Aldeasa takeover saga – 20/01/05

Advent International bid for Aldeasa “˜Friday or Monday’ – Spanish report – 21/01/05

Expansión says Vista and CVC Capital Partners alliance in place as bidders circle Aldeasa; Retailer’s stock closes at 5-year high – 22/01/05