Atlantia warns investors over Genoa bridge disaster

Shares in Atlantia fell more than 25% on Thursday as the company warned that Italian government plans to revoke its motorway concession in response to Monday's Genoa bridge collapse could hit investors.

As the recriminations from the disaster that has so far killed 39 people intensified, Italy's new populist leaders also attacked the Benetton group, the family-run firm which controls the motorway operator Autostrade through a 30% stake in Atlantia via its Sintonia holding company, and the EU for curbs on government spending.

In a statement, Atlantia said it would have to be paid the residual value of the contract "net of any penalty" if it was terminated.

The company said it supported its 88%-owned subsidiary Autostrade per l'Italia in its "debate with the government institutions in such a sensitive moment, with the aim also of protecting the interests of its shareholders and bondholders by means of a correct and timely information to the market".

Luigi Di Maio, leader of the Five Star Movement and Italy's deputy prime minister, slammed the company for putting profits before safety and accused it of having too much political influence.

"It's not possible that someone pays a toll to die. Those who were supposed to do the maintenance work did not do it properly. That bridge should have been closed before this tragedy happened.

"The truth is that ... even now they only think about the business. There are dead under the rubble, injured in hospitals and rescuers at work for two days and the group of Benetton Atlantia talk about 'residual value' ...It is precisely this lack of heart that has led a society to be interested only in profits and a party only (to) its political advantage. But that era is over."

As rescuers search through the debris, Genoa chief prosecutor Francesco Cozzi told reporters that "there could be 10 to 20 persons still missing". Fifteen people are injured and at least seven victims have been pulled out of the rubble alive.

The disaster occurred when a large span of the Morandi bridge collapsed during a heavy rain storm on Tuesday.

Government threatens fine

Transport Minister Danilo Toninelli on Wednesday said he had started the process to cancel Autostrade's contract to run and manage the A10 toll motorway and fine the company €150m.

However, Atlantia hit back on Thursday, saying that the announcement was publicly communicated "lacking a specific default notice and without any verification of the material causes of the accident".

Matteo Salvini, leader of Five Star's coalition partner Northern League, condemned European Union budget constraints in the wake of the disaster.

"We should ask ourselves whether respecting these limits is more important than the safety of Italian citizens. Obviously for me, it is not," he said.

The European Commission swiftly rejected Salvini's claims saying on Thursday that it was time "to make a few things clear".

"Over the 2014-2020 period Italy is set to receive around €2.5bn under European structural and investment funds for investments in network infrastructures such as roads or rail," a commission spokesman said.

"In April 2018 the Commission also approved under EU state aid rules an investment plan for Italian motorways which will enable around €8.5bn of investments to go ahead including in the Genoa region.

"For the record, under the agreed fiscal rules member states are free to set specific policy priorities, for instance the development and maintenance of infrastructure. In fact, the EU has encouraged investment in infrastructure in Italy.

"The 2018 country-specific recommendations adopted by the Council called on the Italian authorities to better target investments to foster infrastructural development. Italy is one of the main beneficiaries of the flexibility within stability and growth pact. This has allowed Italy to invest and spend much more than in recent years."

Atlantia operates 5,000 km of toll motorways in Italy, Brazil, Chile, India and Poland, and manages airports in Italy and France. Other shareholders include the Singapore government wealth fund GIC with 8%, private equity giant Blackrock, HSBC and Italian savings bank Cassa di Risparmio di Torino with 5% each, according to the company's website.