Eiffage, Sacyr shares dip after takeover rejection

24th April 2007, Comments 0 comments

PARIS, April 24, 2007 (AFP) - Shares in French construction group Eiffage dipped on Tuesday a day after shareholders unanimously rejected a takeover bid by Sacyr Vallehermoso of Spain, saying Sacyr should make a higher offer.

PARIS, April 24, 2007 (AFP) - Shares in French construction group Eiffage dipped on Tuesday a day after shareholders unanimously rejected a takeover bid by Sacyr Vallehermoso of Spain, saying Sacyr should make a higher offer.

In late morning trading Eiffage shares had shed 2.35 percent to 104.49 euros, wiping out earlier gains, in an overall Parisian market which was down 0.53 percent.

In Madrid, Sacyr shares dropped 8.46 percent to 40.65 euros.

The Spanish group, which is heavily indebted, made an all-share offer on April 19 worth 6.5 billion euros (8.8 billion dollars) for total control of Eiffage in a deal that would create a European construction giant.

The bid would create the fourth-biggest European civil engineering and construction group, and "a major player in construction in Europe," Sacyr chief Luis Del Rivero told a news conference in Paris.

On Monday, the Eiffage board said Sacyr should file a new offer that is "unconditional" and which is "at least equal to the highest buying price" paid by recent purchasers of stock, "which is to Eiffage's knowledge 129.3 euros a share."

Sacyr has offered 12 of its own shares for five Eiffage shares, which it says offers a 30.6 percent premium on the one-month weighted average Eiffage price as of March 20.

Sacyr Vallehermoso is already the leading shareholder in Eiffage with 33.32 percent of the capital and 29.0 percent of the votes.

The bid is set to begin May 9 and run until July 2.


Copyright AFP

SUbject: French news

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