ACS, Activades de Construccion y Servicios "buy"

01/02/07 - Ibersecurities

LONDON, January 2 (newratings.com) - Analysts at Ibersecurities maintain their "buy" rating on ACS, Activades de Construcción y Servicios SA (OCI1). The target price is set to €44.6.

In a research note published on December 29, the analysts mention that the company has closed the financing conditions for the acquisition of a 10% stake in Iberdrola. About 80% of the total investment would be financed through a €2.818 billion debt, which is to be backed by Iberdrola’s shares, while the remaining investment is likely to be financed by ACS subordinated debt, the analysts say. ACS also has the option to acquire an additional 0.882% stake in IBE via an equity swap, Ibersecurities adds.