Leighton Holdings Ltd (ASX:LEI) has been told its independence will not be protected by the Australian Government in the event that its German parent Hochtief is acquired by a Spanish construction company (Actividades de Construccion y Servicios).
The Takeovers Panel has issued a statement in which it says there is no reasonable prospect that would declare the circumstances unacceptable, noting that the Spanish suitor has stated in the event of the deal nothing will change for Leighton.
Leighton's parent Hochtief owns a 54.48 per cent stake in the construction company and Leighton had earlier appealed for protection following the Spanish company making a bid for the 70 per cent stake of Hochtief it did not already own.
Leighton had feared its autonomy may be compromised and had also asked for its potential suitor's voting rights to restricted to 20 per cent of its interest.
However following the statement from the Takeovers Panel, Leighton's Chairman David Mortimer says the company will not appeal the decision from the Takeovers Panel.
Adding that, Leighton is encouraged by the public statements from Hoctief's suitor and intends to actively pursue a governance agreement to protect the interests of its minority shareholders.
Leighton Holdings booked a $615.13 million profit in the year to 30 June 2010.
LEI Price at posting:
$32.47 Sentiment: None Disclosure: Held
