(Bloomberg) --

Italian toll-road manager Autostrade per l’Italia SpA, controlled by the Benetton family, approved a new proposal aimed at resolving the highway-concession dispute that’s simmered since the deadly 2018 Genoa bridge disaster, people familiar with the matter said.

The unit of Atlantia SpA is sending the proposal to the government Saturday, the people said. Prime Minister Giuseppe Conte’s government had given Autostrade until the weekend to come up with an offer and avoid having Autostrade’s road concessions revoked. The cabinet is set to meet as early as Monday, according to the people, who declined to be identified because the talks are private.

The boards of Atlantia and Autostrade met on Friday to hammer out the proposal, which includes the family ceding control of Autostrade to infrastructure fund F2i and state lender Cassa Depositi e Prestiti SpA, while retaining a minority stake, the people said. They would boost their stake via a reserved capital increase.

Autostrade would also reduce tariffs, boost investments and pay compensation for the bridge collapse, the people said.

The government may have gained an edge in the negotiations following a decision by the country’s top court, which ruled against Autostrade in a case concerning its exclusion from works on a replacement bridge. Atlantia currently owns about 88% of Autostrade.

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