Overview

• SEPI backtracked on a €150 million convertible loan and proposed splitting the funding equally between the central government and the Basque consortium.
• The PNV has demanded that Madrid remove its obstacles to the transaction and warned the government would have to answer to the Basque public if the deal fails.
• A Basque consortium led by Sidenor, with Finkatuz, BBK and Vital, signed a pre-agreement to buy 29.8 % of Talgo for about €155 million and plans to transfer its headquarters from Madrid to Euskadi.
• Talgo’s Rivabellosa plant employs roughly 700 families and its regional operations are viewed as critical to Euskadi’s industrial sovereignty.
• A €7.1 million loss in the first quarter and a €4 billion order backlog underscore the rail maker’s urgent need for fresh capital.