Hochtief to spin off airport stakes into new fund-paper

Hochtief to spin off airport stakes into new
fund-paper

Reuters, 03.25.04, 2:20 PM ET


FRANKFURT, March 25 (Reuters) - Germany's biggest
building group Hochtief AG <HOTG.DE> plans to spin off
holdings in four airports worth up to one billion
euros ($1.21 billion) into an independent airport
fund, a German paper said on Friday. 

Die Welt said in a preview of an article to appear on
Friday that Hochtief would create an airport fund out
of its stakes in airports at Sydney, Athens,
Duesseldorf and Hamburg, which it would then manage. 

The paper said initially about half of the airport
fund would be placed with institutional investors. 

It quoted Reinhard Kalenda, the chief executive of the
Hochtief Airport unit, confirming the move, and saying
that it would be implemented in the second half of the
year. He said the plans were at a final stage. 

The paper said the move was intended to raise funds
for the group's growth, and that Hochtief Airport
would now advise airport operators and help broker
airport sell-offs. 

The paper said Hochtief Aiport owned a 40 percent
stake in Athens airport, 39.2 percent in Hamburg, 30
percent in Duesseldorf and 10.5 percent in Sydney. 

Hochtief has responded to a slump in the building
business by expanding internationally and moving into
services such as facility management. 

Services will make up significantly more than 35
percent of Hochtief's business this year, and up to
half by 2007. ($1=.8246 Euro) 

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