George Soros to Buy a Stake in FCC Below 30% to Evade Takeover Bid

13/06/2014 – El Economista

Esther Koplowitz needs a new partner who would inject fresh capital in her financial vehicle corporation (FVC) B-1998 through which Koplowitz controlls FCC. Magnate George Soros, presently holding 3.8% in the construction firm, is one of the sure candidates.

According to sources from the market, the owner does not wish to lose her position in B-1998 as it would also mean losing controll over FCC. For that reason, the ongoing talks mention between €400 and 500 million. By injecting the amount, Soros would possess an around 40% stake in B-1998, while Koplowitz would reduce her share from present 90% to 50%.

Soros is also aware that the holding in B-1998 would give him an over 30% indirect share in FCC. In that situation, he would have to submit a takeover bid for the entire construction company.

The hardships of the vice-president of FCC are caused by a €1.1 billion debt of B-1998. Bankia and BBVA lent the amount for purchase of FCC shares. Moreover, Koplowitz faces a €6.2 billion indebtness of the construction company (data from March).

The news about the possibility that George Soros could enter in B-1998 and therefore in FCC boosted the price of FCC shares on the stock by 4.48% to 17.595 Euros a share.

 

Original article: El Economista (by A. Brualla)

Translation: AURA REE

43