Salini Reaches 86 Percent Impregilo Stake, Paving Way for Merger

Salini SpA raised its stake in Impregilo SpA (IPG) to more than 86 percent after its offer for the holdings it didn’t own in Italy’s biggest builder was subscribed to by four-fifths of the owners of the shares.

Salini, which also is based in Milan and owned just less than 30 percent of Impregilo, obtained 80.8 percent of the shares which it offered to buy, the Italian Stock Exchange said in a regulatory filing. That means it now owns about 86.5 percent, according to Bloomberg calculations.

Salini last month offered 4 euros cash for each ordinary share of Impregilo it didn’t own. The success of the offer, valuing the company at 1.6 billion euros ($2.1 billion), paves the way for a merger between the two businesses by year end. Salini won control of Impregilo’s board in July and ousted directors backed by IGLI, an investment company controlled by Beniamino Gavio that also owned about 30 percent of the construction company before tendering its shares within the offer.

Salini offers construction and maintenance for hydroelectric plants, dams, roads, bridges, underground railways, airports and industrial buildings.

Impregilo builds tunnels and roads and is working on the expansion of the Panama Canal. The company said March 11 that net income more than tripled to 601 million euros last year after the sale of a stake in Brazil-based motorway operator Ecorodovias.

Impregilo’s shares fell 0.5 percent today to 3.974 euros today, taking their year-to-date advance to 12.5 percent.

-- With assistance from Chiara Vasarri. Editors: James Kraus, Karl Maier

To contact the reporter on this story: Lorenzo Totaro in Rome at ltotaro@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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