Sept. 30 (Bloomberg) -- Abertis Infraestructuras SA of Spain and Citigroup Inc. withdrew their $12.8 billion offer to operate the 537-mile (864-kilometer) Pennsylvania Turnpike today after state lawmakers delayed a decision on legislation needed to allow the transaction to go forward.

``The board decided a few hours ago that they would not extend the offer to the commonwealth,'' said Jim Courtovich, a spokesman for Abertis with Kearsarge Global Advisors, a public relations firm. The offer expires at 5 p.m.

Pennsylvania Governor Edward Rendell named a group led by Abertis and New York-based Citigroup on May 19 as winner of the right to operate the state's only toll road for 75 years. Rendell wanted to use money from the transaction to help fund road and bridge improvements across the state.

Legislators opposed leasing the Turnpike, arguing that the bid didn't provide enough money for the highway. Instead, they wanted federal approval to toll the section of Interstate 80 that runs through the state, a bid that was rejected earlier this month by the U.S. Transportation Department.

``Governor Rendell remains committed to pursuing legislation to allow a lease of the Turnpike,'' Chuck Ardo, a Rendell spokesman, said in an e-mailed statement. ``Should such legislation be enacted, it would be his hope to execute a lease with the Abertis/Citi team.''

Deal Still Possible

Abertis still wants to lease and operate the Turnpike, and will continue trying to find a way to complete an agreement, Courtovich said.

``We made the strongest bid the first time and we are anxious to continue the dialogue with the state at any time should they call us,'' he said.

Pennsylvania must now find another source of revenue to bridge a transportation funding shortfall estimated at $1.7 billion in November 2006.

The state has about 8,500 miles of roadway rated in ``poor condition,'' said Rich Kirkpatrick, a state Transportation Department spokesman. The state has 6,034 bridges rated as structurally deficient as of June 30, the most of any state in the U.S., Kirkpatrick said.

To contact the reporters on this story: Adam L. Cataldo in New York at acataldo@bloomberg.net.; Brian McGee in Madrid at bmcgee3@bloomberg.net

Last Updated: September 30, 2008 17:17 EDT