The Diplomat
The Hungarian consortium Ganz-Mavag (Magyar Vagon) has informed the National Securities Market Commission (CNMV) of the withdrawal of its takeover bid for 100% of Talgo, following the Government’s veto.
The Hungarians consider that this decision of the Executive ‘lacks the slightest motivation and produces the most absolute defencelessness’, so it will present an appeal against the decision of the Council of Ministers before the contentious-administrative chamber of the Supreme Court.
‘Given the serious damage that the Spanish government’s decision has caused to our legitimate interests, the uncertainty that this decision raises regarding the terms of the offer and the costs of maintaining its validity, we communicate our decision to withdraw from the takeover bid for 100% of Talgo’s capital,’ the company’s statement reads.
The appeal to the Supreme Court will not only urge the nullity of the decision taken by the Government, but will also request compensation from the State for all damages caused.
The legal deadline for lodging this appeal is two months, during which time Magyar Vagon will analyse and determine the appropriate actions to defend its legitimate interests, including the request for injunctive relief.
The company also has the option of lodging an appeal for reconsideration with the Council of Ministers within one month, although if it lodges this appeal, it will not be able to go to the Supreme Court until its resolution or rejection.
In addition to the appeals that it will initiate in Spain, it has also advanced that it will take all legal action within its reach, both nationally and within the European Union, as it considers that the veto is not in accordance with the law, as it believes that its offer ‘complies with all the legal requirements in force and that there are no well-founded reasons for the Spanish Government’s opposition’.
In any case, the European Union has already expressed its position on Thursday through the EU spokesperson, Francesca Dalboni, who endorsed the government’s veto, avoiding objecting to the Spanish government’s manoeuvre, assuring that it is the prerogative of the Member States to adopt this type of decision. ‘We have no specific comment,’ he said.
In the statement, Magyar Vagon does not rule out submitting another offer to acquire 100% of the Spanish company, depending on the evolution of circumstances.
The Hungarians also include in their communication to the market the text sent by the government to the company, informing it that it did not authorise the operation because of the risks it poses ‘to public safety, order and health’.
On the stock market, the company fell 0.4% this Friday at around 11.00 a.m., with a price of 3.93 euros, still above the 3.7 euros at which it was trading in November last year, before Magyar Vagon’s interest in buying the company was announced.
