(Corrects paragraph 2 to say that Hochtief Concessions, not
U.S. subsidiary Flatiron, in consortium and adds detail in
paragraph 2 and new third paragraph to clarify that the $1 bln
is the value of the deal over its 33-year lifetime.
* Hochtief consortium to seal $1 bln Golden Gate Bridge deal
* Final deal to be signed in December
* Hostile bidder ACS lost out in running for project
FRANKFURT, Oct 22 A consortium led by German
construction group Hochtief (HOTG.DE) beat out Spanish predator
ACS (ACS.MC) to a breakthrough $1 billion building project at
the foot of San Francisco's Golden Gate Bridge.
A unit of Hochtief Concessions along with 50 percent partner
Meridiam Infrastructure will finance, design, build, operate and
maintain for 33 years the access road to the landmark bridge --
called the Presidio Parkway.
A spokeswoman for Hochtief Concessions said the consortium
would receive in exchange steady payments from the state
amounting to a total of $1 billion over the entire lifetime of
"At the beginning of October, Governor Arnold Schwarzenegger
already approved the fiscal appropriations necessary for
remunerating the private partner," Hochtief said on Friday.
A consortium around Spanish builder ACS, which last month
launched a hostile all-share lowball offer for a majority in the
German group, was also bidding for the contract, according to
"This is breakthrough for Hochtief's U.S. business," one
construction sector analyst said. Another added that it was a
sign of Hochtief's financial strength, but doubted it would have
an impact on the takeover battle.
The project will replace the southern access road to the
Golden Gate Bridge and the final deal is expected to be sealed
in December, Hochtief said.
ACS owns a 29.9 percent stake in Germany's biggest building
company. In a no-premium approach that values Hochtief at around
3.7 billion euros ($5.15 billion), it aims to hike its holding
to above 50 percent. [ID:nSGE69K0BV]
(Reporting by Josie Cox; Editing by Michael Shields)