First the Wall Street Journal, then Market Movers.
From the WSJ:
Turnpike Deal Gets BumpyAbertis-Citi Encounter
High Costs and Potholes
For Infrastructure Investors
America is definitely becoming a mecca for deal-hungry infrastructure funds. Whether investors in this burgeoning asset class making the pilgrimage to these shores will find redemption, however, is far from certain.
A consortium led by Spanish transportation and highway operator Abertis has offered $12.8 billion to operate the Pennsylvania Turnpike for 75 years, edging out local heavyweight Goldman Sachs Group in the process. Moreover, the final price was 20% more than Abertis, along with a Citigroup fund and a minor Spanish partner, had offered in the first round of bidding. From the looks of it, Abertis and Citi have stretched themselves to the limit....MORE
The Cheap Pennsylvania Turnpike
What kind of effect has the credit crunch had on the formerly-frothy market for infrastructure investments? As money becomes scarcer, the price tags attached to future-cashflow investments like toll roads would normally go down. But there was always another possibility: that infrastructure, which is one of a very small number of fixed-income investments which doesn't involve credit risk, would survive the credit crunch unscathed and even maybe get a new flight-from-credit bid....MORE