Third Point buys stake in Spanish defence firm Indra, source says

MADRID, Feb 16 (Reuters) - ‌U.S. hedge ​fund ​Third Point has bought a stake in Spanish defence company ‌Indra and supports its chairman's plan to ⁠acquire smaller rival Escribano Mechanical & Engineering, a ‌market source familiar with ‌the matter told Reuters on Monday.

A spokesperson for Indra declined to comment on ​Third Point's purchase, which was first reported by Bloomberg. This cited a ⁠letter sent to Indra's board and holding group Sepi, which ​manages Madrid's 28% stake in the company.

The size of the stake was ​not mentioned in the ‌letter.

A spokesperson for Sepi also declined to comment.

The potential acquisition ⁠of Escribano Mechanical & Engineering, which is owned by Indra chairman Angel Escribano and his ⁠brother Javier, has caused tension among some Indra shareholders ​concerned about conflicts of interest.

Third Point's chief executive Dan Loeb wrote in his letter to Indra ‌and Sepi that he strongly supported the plan to acquire ‌EM&E, viewing it as a unique opportunity ⁠to create a ‌Spanish defense champion, ​Bloomberg reported.

(Reporting by Paolo Laudani and Victoria Waldersee, Editing by Alexander ‌Smith)

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