CORRECTED - STOCKS NEWS EUROPE-Ferrovial surges on steps to Cintra merger

(Corrects to make clear Ferrovial is expected to offer Cintra shareholders just under one Ferrovial share for every five shares in the motorway company, not just over one share)

Spanish builder and services group Ferrovial (FER.MC) gains over 5 percent after announcing a debt refinancing deal which paves the way for its planned buyout of its Cintra (CCIT.MC) motorway unit.

Ferrovial's 3.3 billion loan, announced on Tuesday, allows the group to take back part of its about 68 percent stake in Cintra the firm used as collateral against previous lending when acquiring UK airports operator BAA.

"With these hurdles out of the way, the merger with Cintra should move ahead and is expected to be completed by the end of the year," BPI said in a note.

Cintra shares rise 3.6 percent on the news, broadly reflecting market sentiment that Ferrovial will offer Cintra shareholders just under one Ferrovial share for every five shares they hold in the motorway company.

"It's widely seen that Ferrovial will get a good deal from acquiring the minorities in Cintra, it has a majority stake and control of the company's board," a Madrid-based dealer says.

The recent organisation by investment funds with minority stakes in Cintra to pressure Ferrovial into offering more attractive terms could exert "at the most, political pressure" on the group's board, the dealer notes.

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Reuters Messaging rm://jonathan.gleave.reuters.com@reuters.net