Private equity: Sponsors need to exercise self-control

Given the negative sentiment that has plagued Europe in recent months, the announcement of an ambitious €25 billion LBO financing incorporating a large slug of bank debt for Spanish infrastructure firm Abertis has come as very welcome news. The deal, which harks back to the days of the jumbo LBOs before 2007, could involve the firm being bought out by a consortium of La Caixa and Spanish construction group ACS (which together own 55% of Abertis) and private equity firm CVC.