MADRID, Feb 16 (Reuters) – U.S. hedge fund Third Point has bought a stake in Spanish defence company Indra and supports its chairman’s plan to acquire smaller rival Escribano Mechanical & Engineering, a market source familiar with the matter told Reuters on Monday.
A spokesperson for Indra declined to comment on Third Point’s purchase, which was first reported by Bloomberg. This cited a letter sent to Indra’s board and holding group Sepi, which manages Madrid’s 28% stake in the company.
The size of the stake was not mentioned in the letter.
A spokesperson for Sepi also declined to comment.
The potential acquisition of Escribano Mechanical & Engineering, which is owned by Indra chairman Angel Escribano and his brother Javier, has caused tension among some Indra shareholders concerned about conflicts of interest.
Third Point’s chief executive Dan Loeb wrote in his letter to Indra and Sepi that he strongly supported the plan to acquire EM&E, viewing it as a unique opportunity to create a Spanish defense champion, Bloomberg reported.
(Reporting by Paolo Laudani and Victoria Waldersee, Editing by Alexander Smith)
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