Leighton shares shake up a bit on prospect of buyout bid for German parent company
Three nations' markets launched into frenetic trading on Friday as Spanish construction giant Actividades de Construccion y Servicios (ACS) put forward a 2.76 billion Euro or $A3.85 billion all-share proposal on the remaining 70 percent of Germany's Hochtief, which is a majority owner of Australia's Leighton Holdings Ltd (ASX: LEI).
The country's foremost property and contracting mining group saw its share roller-coasting at the market's opening before settling at $33.86 by 1320 AEST on Friday and gaining by 0.86 percent as both German and Spanish security markets were kept busy a day earlier when ACS made known its intent to fully-acquire Leighton's parent company.
Hochtief maintains 54 percent stake on the Sydney-based construction giant, enabling the German firm to secure four seats on Leighton's board as analysts observed that the acquisition offer came just days after the Aussie firm's long-time chief executive Wal King announced that he is due to depart from the company by January next year.
The revelation was made amidst circulating reports that Mr King had developed a bitter relationship with Hochtief, which was reportedly triggered by the German firm's growing irritation on the chief executive's alleged close contacts with ACS, as reported by the Sydney Morning Herald.
The same report noted that Leighton and ACS were gearing for a number of joint projects in Australia and Asia, specifically contracts that deal with the power and water industries, which analysts said could be the source of the reported animosity between Mr King and Hochtief.
Meanwhile, Hochtief issued a statement on Thursday where the company announced that the ACS proposal was being assessed at the moment, underscoring that its "executive board is evaluating the situation and will be making an announcement with its response and advice to shareholders as soon as appropriate."