American billionaire Bill Gates has bought a 6 per cent stake in the Spanish infrastructure group FCC, a powerful vote of confidence in Spain's battered economy.
News that Microsoft's founder and the world's richest man was dipping his toe into Spanish waters was greeted with euphoria on the Madrid stockmarket, though the rally later sputtered on fresh banking woes. FCC's share price surged 8 per cent, lifting the construction sector.
Juan Bejar, FCC's chief executive, said the 113 million ($184 million) share purchase was a "referendum on economic recovery, both at national level and for the company itself. I think he chose FCC as an entry point because he sees Spain as attractive. It is a long-term investment because his funds don't take opportunistic bets for short-term gain".
Santander chief Emilio Botin said last week there had been a "drastic change" in perceptions about Spain. "Money is pouring in from all sides. Everybody wants to invest in Spain," he said.
Spanish heiress and philanthropist Esther Koplowitz, the 7th Marchioness of Casa Penalver, remains FCC's biggest shareholder with 53 per cent, while her daughter chairs the 80,000-strong company. The group was coy about the details of the deal, saying only that buyers were entities "related" to Gates. The share deal entails dilution.