Spain Business
Spain Business Brief - Friday February 1 2008
By h.b.
Feb 1, 2008 - 1:09 PM

General Electric has withdrawn its interest, for the time being, in the take over of the second largest real estate business in Spain, Colonial. Latest reports indicate that another offer for Colonial could come from the United Arab Emirates following reports that the Colonial books have been opened to an investment arm of the Dubai Government, the ICD, the Investment Corporation of Dubai.
Trading on Colonial was suspended in Madrid for a time, and the shares fell slightly when trading resumed just before noon.
It seems that General Electric dropped out of the take over race when they could not agree on the terms of a confidentiality agreement with Colonial ahead of inspecting its books. GE say they are keeping the door open to a ‘possible future interest’.

The President of the Junta de Andalucía, Manuel Chaves, has today revealed conversations on the possible merger of the Andalucian Savings Banks. ‘A grand Andalucian Savings Bank is on the way’ he said, confirming multilateral conversations intended to merge all the savings banks which are based in the region. Chaves gave the news as part of his election manifesto for re-election at the poll which will be held on the same day as the General Election on March 9. Chaves said that the important thing was that an Andalucian Savings Bank be competitive both inside and outside the region.

La Caixa savings bank has announced profits down 17.8% in 2007 at 2.488 billion. President of the company, Isidro Fainé, admitted that such a ‘tragic correction’ had not been seen for several years.
The fall in profits comes though after the exceptional year in 2006 when the bank sold off its interests in Colonial real estate.

Nearly 900,000 farmers in Spain can now apply for the grants from the CAP, the Common Agricultural Policy. The period for applications extends until the end of April with a total of 4.8 billion € up for grabs. The funds will be paid to the farmers from December 1.

British Airways is reported to be negotiating to strengthen their position in Iberia, following an ultimatum from the main Iberia shareholder, Caja Madrid. The Chairman of BA said that there was room to strengthen the company’s relationship with the Spanish company.

The ex Vice-president of the Spanish Government and Director of the International Monetary Fund, IMF, Rodrigo Rato, today has taken up is position as Director General of the Lazard bank. He will earn 3.2 million € a year for advising the bank and its board in the Santander.

And finally,
Cantabria is now linked to the plain in Spain by what has turned out to be the most expensive motorway in the country, in cost per kilometre terms at 16 million €, four times the national average. The A-67 also has the highest bridge in the country, at 145 m, as part of the 200 million € cost of the new link between Molledo and Pesquera.