Italy's PM dismisses latest Atlantia bid to keep motorway licence

Italy's prime minister has dismissed as a "joke" the latest offer from infrastructure group Atlantia, which is trying to cling on to a lucrative contract at its tollway unit following a deadly bridge collapse. Giuseppe Conte's comments to a newspaper come ahead of a cabinet meeting expected on Tuesday to decide whether to revoke the motorway operating licence held by Atlantia's Autostrade per l'Italia unit.

Italy's prime minister has dismissed as a "joke" the latest offer from infrastructure group Atlantia, which is trying to cling on to a lucrative contract at its tollway unit following a deadly bridge collapse.

Giuseppe Conte's comments to a newspaper come ahead of a cabinet meeting expected on Tuesday to decide whether to revoke the motorway operating license held by Atlantia's Autostrade per l'Italia unit. The unit managed a bridge that collapsed in the northern Italian city of Genoa in 2018, killing 43 people. Atlantia has indicated it is willing to give up control of Autostrade and make a series of financial commitments, but Conte said the latest proposals were insufficient.

"On Saturday, a proposal arrived that was very unsatisfactory, not to say embarrassing," he told Il Fatto Quotidiano. He said the cabinet would reach a collective decision at a meeting expected on Tuesday, but signaled he would recommend revoking the concession.

"I will only say I see only one decision, which is being imposed by Atlantia," he said. Atlantia shares fell 10% at the start of trading in Milan. ​ Following months of wrangling, Atlantia has proposed a capital increase that would dilute its stake in Autostrade below 50% as well as compensation of 3.4 billion euros ($3.9 billion), investments in roadway infrastructure totaling some 14.5 billion euros and lower tariffs.

However, it has resisted legal changes that would make it easier for authorities to strip it of the license in cases of proven failures in running the motorways. The issue has created serious political problems for Conte's shaky coalition, with the anti-establishment 5-Star Movement determined to strip the powerful Benetton family, which controls Atlantia, of the motorway concession.

That has caused friction with partners in the center-left Democratic Party and centrist Italia Viva group, which fear a potentially costly court battle and heavy compensation payments as well as job losses. ($1 = 0.8826 euros)

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