ACS German unit Hochtief to replace chief executive

The chief executive of Hochtief, who opposed leading Spanish construction group ACS's successful bid to increase its stake in the German builder, will stand down next month.

Hochtief said Monday that as part of a "mutually amicable agreement," CEO Herbert Lütkestratkötter would leave the company at the end of a shareholders' annual general meeting on May 12. He will be replaced by executive board member Frank Stieler who has the blessing of ACS, which is Hochtief's biggest shareholder with a 41 percent economic stake and 43 percent of its voting rights.

ACS is looking to increase its stake to 50 percent before the AGM, a move that will allow it to fully consolidate Hochtief in its books as it continued to expand geographically and into different business lines.

Lütkestratkötter will receive 4 million euros in compensation. His replacement Stieler has been a board member since 2009 and is in charge of the group's European operations.

The management shift comes after Hochtief last week reported its pre-tax earnings could fall by 50 percent this year, as a result of a predicted loss [SIMBOLO_EURO]due to delays and cost overruns in some of its major projects of 311.5 million euros by its Australian unit Leighton Holdings, which only two months previously estimated a profit of 350 million euros.

Hochtief said Monday it would fully take up its subscription rights of 54 percent of Leighton's planned capital increase of 757 million Australian dollars (551 million euros) using existing lines of credit.