The relocation plan angered the Spanish government, with Labour Minister Yolanda Diaz saying the company was "ungrateful" as it had benefited from public work contracts and that the move was a way for Ferrovial to dodge taxes. This week, government officials sent a letter to the company asking it to tell shareholders there was no need to move to the Netherlands to become listed in New York. "The dual listing from the Netherlands is an expeditious and well-known alternative," Ferrovial Chief Executive Ignacio Madridejos replied in a letter seen by Reuters, adding the company was not seeking any tax advantages.
The letter said seeking a U.S. listing from Spain lacked precedents and created "technical and operational" concerns. The Norwegian fund did not explain its change of heart. It previously said on its website that it opposed such corporate moves when they lacked transparency, or when there is a risk of "unnecessary conflicts of interest". A spokesperson for the fund did not immediately respond to a message seeking comment.
Two proxy advisers, Glass Lewis & Co and Institutional Shareholder Services (ISS), late last month separately recommended that Ferrovial shareholders approve the plan. Ferrovial's main investors also support the relocation proposal, according to Madridejos' letter. (Reporting by Inti Landauro and Corina Pons; Editing by Sharon Singleton)
