German builder Hochtief spurns mooted bid by Spanish ACS
The German group Hochtief spurned Wednesday a takeover offer by major shareholder ACS that would create the world's biggest construction group.
The bid by ACS, Spain's largest construction company, presents "no value to Hochtief shareholders," a statement said.
ACS already owns just under 30 percent of Hochtief, the biggest construction group in Germany.
Last week, ACS general manager Angel Garcia Altozano presented the offer of eight ACS shares for five of those in Hochtief as being "quite friendly" and "beneficial for both companies and their shareholders."
Hochtief replied by saying that it did not reflect the German company's growth potential and that the price "corresponds only to the statutory minimum price and not in line with current and expected market valuation of Hochtief."
ACS has not officially launched its offer yet but expects to in November.
Gaining control of more than half of Hochtief would double ACS' sales to around 34.96 billion euros (47 billion dollars), making it the biggest construction company worldwide.
© 2010 AFP