VARIOUS/FILE: Spanish construction group ACS secures crucial 30 percent holding in Hochtief after a hotly contested takeover bid

Record ID: 477234

  • Title: VARIOUS/FILE: Spanish construction group ACS secures crucial 30 percent holding in Hochtief after a hotly contested takeover bid
  • Date: 5th January 2011
  • Summary: FRANKFURT, GERMANY (JANUARY 4, 2011) (REUTERS) EXTERIOR OF STOCK EXCHANGE CLOSE OF FLAG IN FRONT OF STOCK EXCHANGE WIDE OF TRADING FLOOR CLOSE OF TRADER AT COMPUTER CLOSE OF TRADING BOARD SHOWING DAX VARIOUS OF TRADERS WORKING AT STOCK EXCHANGE PAN OVER BOARD (SOUNDBITE) (English) ROBERT HALVER, TRADER FOR BAADER BANK AG, SAYING: "I would say that ACS, the Spanis
  • Embargoed: 20th January 2011 12:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: Finance
  • Reuters ID: LVACUZRSEGOWIWG1ICFKN1634WM
  • Story Text: Spanish builder ACS has secured a crucial 30 percent holding in Hochtief on Tuesday (January 4) following a hotly contested takeover bid, allowing it to build a controlling interest in the German construction group.
    ACS wants control of Hochtief's strong balance sheet to ease its own debt burden of more than nine billion euros (12 billion U.S. dollars) and to help it diversify away from Spain's struggling construction and property sectors.
    But after reaching the key 30 percent threshold above which German takeover rules allow it to buy more shares on the market without making another offer for the whole company, ACS may not now be in a hurry to reach its 50 percent target.
    "I would say that ACS, the Spanish construction company, is on a very good way to take over Hochtief. Definitely they have 30 percent of the stakes of the equity capital and that's enough to say, on a long term basis, they will gain the majority," Robert Halver, trader for Baader Bank AG at Frankfurt stock exchange, told Reuters Television.
    Hochtief is not the only iron ACS, headed by Real Madrid soccer club president Florentino Perez, has in the fire.
    It is also pursuing board seats at Iberdrola by increasing its stake in the Spanish utility.
    Board representation would allow it to consolidate a proportion of Iberdrola's earnings.
    ACS said on Tuesday it holds 30.34 percent of Hochtief and will extend its bid to Jan. 18 in an attempt to get more shareholders to accept its improved nine-for-five share offer, which had closed on Dec. 29. It would need to find about 1 billion euros to buy an additional 20 percent of Hochtief.
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