By Ross Kelly
SYDNEY--Germany's Hochtief AG (HOT.XE) has increased its stake
in Leighton Holdings Ltd. (LEI.AU) to 55.0% from 53.5%, while
indicating it wants to buy more shares in the Australian
construction company.
Leighton, however, attempted to ward off speculation that a
takeover bid could be forthcoming. It said in a filing Friday that
Hochtief had indicated to the company that it only wanted to buy
more shares under Australia's so-called "creep" provisions.
These rules allow companies that already own 20% of a rival to
increase their holding by a maximum of 3% every six months without
having to make a full takeover bid.
The share purchase demonstrated Hochtief's confidence in
Leighton's business model, management and outlook, Leighton
Chairman Bob Humphris said.
Attached to the filing was a letter to Leighton from Hochtief
Chief Executive Marcelino Fernandes Verdes.
In the letter, Mr. Fernandes Verdes said "in the near term
Hochtief intends to acquire further shares in Leighton".
In March, Leighton was rocked by the resignation of three
members of its board, including its former chairman, exposing a
rift with Hochtief.
Hochtief has been conducting a strategic review of its business
after the appointment of Mr. Fernandes Verdes as chief executive
late last year. Spain's Actividades de Construccion y Servicios SA
(ACS.MC), where Mr. Verdes had served in various positions before
joining Hochtief's board, bought a controlling stake in the German
company in 2011 following a drawn-out hostile takeover.
Write to Ross Kelly at ross.kelly@wsj.com
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