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FCC Construccion, S.A.. ends its alliance with Geril over the portuguese construction group Engil

15/02/2000

FCC Construccion, S.A.. ends its alliance with Geril over the portuguese construction group Engil

FCC Construcción and Geril have decided to end the agreement they had signed in connection with Engil and, taking advantage of the current takeover bid, to sell the shares they both hold in the company.

As has been announced on previous occasions, FCC Construcción S.A.'s international strategy is based on acquiring shareholdings in companies with a strong presence in their respective markets, with the FCC Group holding a minority stake which, when combined with a local partner, permits it to have joint control over the company.

In line with this strategy, an alliance was formed with Geril S.G.P.S., the leading shareholder in Engil, the Portuguese construction company.

The later takeover bid launched for Engil, based around the Portuguese construction company Mota & Companhia meant that, in order to retain control over the company, FCC Construcción and its Portuguese partner would have to draw up a rival bid.

Geril does not wish to increase its current shareholding in Engil. Thus, were its bid to be successful, FCC Construcción S.A. would hold a majority stake in Engil, which would run contrary to its international strategy. As mentioned above, this involves possessing a minority shareholding in the companies thorough which it acts in each country.

Furthermore, the price per share offered as part of the current takeover bid has recently been increased from 1,900 to 2,000 escudos. FCC Construcción and Geril have finally decided, therefore, to put an end to their alliance and accept the bid.

FCC Construcción conserves its international strategy and has reaffirmed its interest in maintaining a presence in the Portuguese construction industry: this presence is channelled through its subsidiary Ramalho Rosa Cobetar, which last year recorded turnover of around 18,000 million de escudos.