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Ferrovial's Del Pino family reduces shareholding with merger

A proposed merger between Spain-based Ferrovial, the family-controlled infrastructure firm, and its subsidiary company Cintra is set to go ahead after it received approval from the boards of both companies.
The move comes despite the fact that merging the two companies will reduce the shares held by the controlling Del Pino family from 58% to around 44%. However, analysts suggest the drop in share numbers will not significantly reduce the family's control.
The deal will merge the two companies under the Ferrovial name in a share swap where investors will be offered one Ferrovial share for every four in Cintra. This exchange rate is well below the one proposed by a minority of shareholders, who believe the deal undervalues the toll-road operator Cintra.
Ferrovial, owners of the UK airport operator BAA amongst other assets, will gain access to Cintra's cash pile for a much-needed cash injection into the debt-ridden BAA, if the proposal is agreed by company shareholders in October. The deal is expected to be completed by the end of 2009.
Rafael del Pino (pictured) founded Ferrovial in 1952, which is now one of Spain's largest companies with 2008 revenues of €14 billion. Rafael was chairman until his death last year when he was succeeded by his son Rafael Jr, who now runs the business. (Click here to read our coverage of Rafael's death)

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