Reuters Insider - Italy threatens action over bridge, investors shun operator
16/08/2018 16:34
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_dix7mq2k&referenceId=tag:reuters.com,2018:newsml_OV8TFS0I3_930&pageId=ReutersNews Source: Reuters Insider Description: Italy's biggest toll-road operator came under heavy stock-market attack on Thursday after Rome criticised it for a deadly bridge collapse this week, moving to revoke its concession and accusing it of failing to ensure the viaduct's safety. Sonia Legg reports. Short Link: https://reut.rs/2BdE3JS Video Transcript: The devastation and loss of life has made many angry, and the lucky escapes are compelling. br/ br/ "I heard a really loud noise," said this woman, "like a strange thunder clap. We looked out of the window and the bridge just wasn't there anymore." br/ br/ It all means more pressure on Italy's biggest toll road operator. br/ br/ The safety of travelers is our top priority. br/ br/ Autostrade per l'Italia is responsible for the motorway. It is part of the Atlantia Group and it's owned by Italy's Benetton family. The company says it made regular and thorough safety checks on the 1.2 kilometer-long bridge. But the government has threatened it with heavy fines. Even though, investigators are yet to identify the exact cause of the collapse. Atlantia shares fell 25% on Thursday morning, and other operators also took a hit. The government has threatened to take over the country's motorways if they can't do their job properly. It's also threatened to break EU budget rules if needs be to repair infrastructure and ensure there's no repeat of the disaster. br/ br/ Even without this tragedy, the likelihood of the Italian government testing the EU's patience with respect to its budget rules was always likely to be there. And we've seen that in the way that the investors are reacting around the bond markets. What this has done I think it's acted as a bit of a lightning rod for investors. br/ br/ Italy's main index was closed on Wednesday for a holiday. It fell 1.6% when it opened on Thursday to its lowest since April 2017. Italian bond holders were also hit, and there'll be other costs too. Genoa is Italy's biggest port. The A10 a main artery between Italy and France