ACS makes progress in bid to control Hochtief

ACS moved closer to gaining control of Hochtief after a core shareholder in both companies said it would accept the enhanced offer of the Spanish construction group for the German builder.

US fund manager Southeastern Asset Management, which holds 6.5 percent of ACS, said it would tender about two million shares in Hochtief, equivalent to a 2.6-percent stake, to ACS in exchange for shares in the Spanish company. That pushes ACS's holding in Hochtief close to the 30-percent threshold that frees the Spanish firm to buy more shares in the market.

ACS on Wednesday raised its all-share bid for Hochtief to nine of its own shares instead of eight previously for every five they hold in Hochtief.

ACS's earlier offer was rejected by Hochtief's management, which on Wednesday said it would discuss the enhanced bid with ACS.

Southeastern Asset said it had decided to accept ACS's offer after becoming disgruntled with the Hochtief management, which agreed to sell a 9.1-percent stake in the company to a Qatari sovereign fund at a discount.

"ACS's improved offer, combined with our disappointment in the recent actions of Hochtief management, have led Southeastern to the decision to tender roughly 2 million shares at the revised offer price," Scott Cobb, the head of the company's European operations, said.