Link Securities | The Government of the Basque Country is negotiating with the Spanish Government its entry into the capital of Talgo (TLGO) to offer a financial solution to the company and safeguard its Spanishness, according to the newspaper elEconomista. However, the Basque government’s offer is subject, as with CriteriaCaixa, to the appearance of an industrial partner capable of offering space to increase production.
Although talks are at a preliminary stage, the operation would involve replicating a formula similar to that carried out with ITP Aero, when the exit of Rolls-Royce from its shareholding gave way to a partnership between the US fund Bain Capital, the Spanish JB Capital, and the Instituto Vasco de Finanzas (IVF), with 6% through its investment vehicle Finkatuz. They were joined last year by Indra (IDR), which acquired a 9.5% stake in the Basque aeronautical manufacturer.
