ACS raises Iberdrola stake
Builder nears its goal of gaining 20 percent of power utility
Leading Spanish construction and services group ACS has raised its stake in the local power utility Iberdrola to just under 16 percent from 14.95 percent previously, according to information filed with the National Securities Commission (CNMV).
ACS now holds a direct interest in Iberdrola of 3.836 percent and owns a further 12.113 percent indirectly.
ACS has long stated its intention of increasing its holding in Spain's biggest power company to 20 percent. However, it has so far been thwarted in obtaining representation on the management board of Iberdrola, which claims ACS is a direct competitor in certain areas of its business. The dispute remains in the hands of lawyers.
ACS has not given any timeframe for achieving a 20-percent interest in Iberdrola, saying this will depend on market conditions.
ACS is also currently engaged in a hostile, lowball, all-share takeover bid for its affiliate Hochtief, Germany's biggest builder. Hochtief earlier this week reached an agreement with Qatar Holding under which the sovereign wealth fund will acquire a 9.1-percent stake in the German company for about 400 million euros.
The move will dilute ACS's current holding in Hochtief to about 27 percent from 29.9 percent, making it more difficult for the Spanish firm to gain the 50-percent stake it requires to fully consolidate Hochtief in its books.
