The CMVM has stated that it has no authority to issue a judgement upon the purchase of shares in the Portuguese construction company Engil by FCC Construcción, S.A. As a result, the initiatives aimed at ensuring this body's approval of the shares held by the Spanish company have failed.

Last summer, FCC Construcción, S.A. purchase around of 15% the shares in Engil -- a company for which the Mota group has launched an as yet unregistered takeover bid -- at a cost of close to 3,400 million pesetas. This figure represents less than 3% of the investment made by the FCC Group in 1999.

The CMVM has expressed its 'opinion' that the Spanish company's purchase was not made in collusion with Engil or its directors, the principal accusation made against FCC Construcción, S.A., and that any potential proceedings brought against the company would nullified by the coming into force of the new Stock Exchange Code. It thus made it clear that it would not begin any action against the company.

It also considered that the investment may have breached an Article of the previous code, as a result of the agreements signed between FCC Construcción, S.A. and the Portuguese company Geril, Engil's main shareholder.

Nonetheless, this is simply the CMVM's opinion, and is not binding upon the Chairman of Engil's Shareholders' Assembly, who is the person who must reach a decision upon the matter.

At the time of the CMVM's decision today to provisionally suspend trading in Engil shares, they stood at 9.42 Euros, a price higher than that paid by FCC Construcción, S.A. last year.