U.S. Hedge fund Third Point has taken a stake in Spanish technology and defense company Indra Sistemas SA and publicly voiced its support for the company’s acquisition of Escribano Mechanical & Engineering (EM&E), according to a market source familiar with the matter and statements released Monday.
Third Point’s chief executive, Dan Loeb, communicated the firm’s position in a letter to Indra’s board and its principal shareholder, Sociedad Estatal de Participaciones Industriales (SEPI), which holds a 28% stake in the company. Loeb framed the acquisition as an opportunity to “create a Spanish defense champion,” a characterization that has drawn scrutiny given the potential for conflicts of interest related to EM&E’s ownership by Indra chairman Ángel Escribano and his brother Javier.
The size of Third Point’s stake was not disclosed in the letter, but the fund’s move comes as other investors adjust their positions in Indra. T. Rowe Price increased its shareholding from 2.1% to 3.529% between November and the end of January 2026, while Bank of America reduced its position after a recent surge in Indra’s stock price. AQR Capital Management, a British fund, has taken a 1.5% short position, betting against the company’s stock.
As of Monday’s closing price of €52.85 per share, Indra had a market capitalization of €9.130 billion, meaning Third Point’s investment is valued at approximately €137 million. Bank of America’s most recent filing revealed a 0.114% stake in Indra shares and a 3.844% holding in financial instruments, totaling a 3.958% overall participation.
In the letter to SEPI and Indra’s board, Loeb argued that combining Indra Sistemas and EM&E would “clearly generate value” and align with the interests of all stakeholders, including shareholders, employees, customers, and the Spanish state. He further suggested that delaying the agreement risked eroding value, causing operational distractions, and potentially losing a unique opportunity to establish a globally relevant Spanish defense leader.
Amber Capital, controlled by Joseph Oughourlian, has also expressed support for the deal, stating it was “late” in coming, after recently selling off a 2% stake in Indra, reducing its overall holding to approximately 5% and realizing a €148 million profit.
Indra, through its CEO José Vicente de los Mozos, and EM&M, via statements from Javier Escribano, have indicated they are exploring the structure of the integration. Potential options include a direct merger, a direct purchase of EM&E, integrating the defense assets of both companies into a new entity, or a combination of cash and stock payments. A direct merger has faced political headwinds due to concerns about diminishing public control through SEPI.
