Why is the Atlas Arteria share price hitting the headlines on Monday?

The Atlas Arteria Group (ASX: ALX) share price has started the session down on Monday and now trades in the red.

At the time of writing, shares in the toll road operator and developer are trading at $7.87 apiece, extending losses over the past month to more than 1.6%.

What’s up with the Atlas Arteria share price?

Shares have traded flat this morning following a company update regarding Atlas’ potential takeover of a new toll road.

In an announcement to the ASX, the company confirmed it was in the running to potentially acquire the Chicago Skyway toll road, in no certain terms.

“ALX regularly reviews growth opportunities and strategic options available to ALX,” it said in the statement.

“ALX confirms that it is participating in the sale process for Chicago Skyway. However, there is no certainty that a transaction will eventuate,” it added.

“[The company] does not propose to make further comment on this transaction until an outcome is known or it ceases to be involved in the sale process.”

Meanwhile, the Atlas Arteria share price has been somewhat of a steady performer this year.

It comes as investors seek out potential hedging plays to overcome the eroding impacts of inflation on their portfolios.

The share had been snaking higher across the year to date. That was until news surfaced it was a potential takeover target from IFM Investors back in June.

Investors sent it in a vertical uptrend, harpooning a new 52-week high onto the chart in the process.

It has held the line since, as seen on the chart below.

In the last 12 months, the Atlas Arteria share price is up 18% after a nearly 14% gain this year to date.

The post Why is the Atlas Arteria share price hitting the headlines on Monday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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