Hungarian MaVag declares legal war on the Government over veto of takeover bid for Talgo

The Government has said ‘no’ to the takeover bid for Talgo. But the interested parties will not sit back and do nothing. According to sources familiar with the matter, The Hungarian consortium Ganz-MaVag is considering legal action in Spain and Europe to defend the legality of the offer and the interests of the consortium.

The company analyses the Government’s arguments for opening legal proceedings at the different levels. The consortium has the services of three of the main Spanish law firms: Garrigues, Cuatrecasa and CMS Albiñana & Suárez de Lezo. Legal advice that accompanies the work of the investment bank LazardWith them, prepare a defense to save the operation.

The consortium considers the “risks to national security and public order” claimed by Moncloa to reject its takeover bid to be unfair. For the Government, Talgo is a strategic company within a key sector for economic security, territorial cohesion and industrial development in Spain.

The operation has been thoroughly analyzed previously by the Board of Foreign Investment (JINVEX)a collegiate inter-ministerial body responsible for reporting on each operation, based on information provided by the relevant ministries and agencies.

Operations subject to authorization are evaluated to ensure the protection of security, health or public order.The Council of Ministers has declared the information contained in this file as classified“, explains the Government after its announcement.

MaVag reserved this measure

The man behind the operation, businessman András Tombor, had already stated in July that if the government tried to stop his operation, his consortium would take legal action.Of course there are legal means, although we are not considering them for now. The offer is very good and we are not considering it right now.“, Tambor explained to a group of journalists at the beginning of the summer.

“The deadline for news is August 10, and of course the authorities can ask additional questions that will extend the deadline. We understand that the deadline may be delayed because the Government will want to know more, so we are patiently awaiting your questions.“, he explained yesterday at a press conference.

In addition, the businessman assured that he has not met with Minister of Transport and Sustainable Mobility, Óscar Puente. Tombor is close to Hungarian Prime Minister Viktor Orbán, and his good rapport with Russia has raised suspicions in Pedro Sánchez’s government, with the invasion of Ukraine as a backdrop.

Hungarian investors do not understand this risk that the government is referring to. For Ganz-MaVag, The symbiosis with Talgo is perfect because the Spanish manufacturer has very good technology (especially that of their variable gauge trains, which adapt to any track) while they have a lot of industrial potential to strengthen the manufacturing part.

An ally of Russia?

The Hungarian consortium offered 5 euros per share for 100% of Talgo, valuing the company at 620 million euros. Magyar Vagon defended its operation by claiming that the price offered represented a 41.4% premium. compared to the average price of Talgo during the six months prior to the presentation of the offer.

The Hungarian consortium that wants Talgo has Corvinusa Hungarian state fund, as the owner of 45%. Its offer was always under the scrutiny of Moncloa since Hungary entered into conflict with the European Union itself for his rapprochement with Russia and his opposition to accepting refugee quotas

On the other hand, the own Andras Tombor He was an adviser to the Hungarian government, which Orbán also led as prime minister between 1998 and 2002. The Foreign Investment Board has therefore cited national security reasons.