European Salon de News, Discussion et Klatsch - 15 October | 141 comments (141 topical, editorial, 0 hidden)

Simple, ACS is big. If they managed to survive the Spanish crisis they're in a position to take over anyone.

Also, because of the absence of a construction boom in Germany, German construction companies are relatively smaller.

None of this means that ACS' bid is sound. It might be, or not. Takeovers are not about the health of the business.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Fri Oct 15th, 2010 at 01:48:07 AM EST
[ Parent ]

Re: Economy and Finance (4.00 / 4)

off the top of my head w/ no research, i'd say that ACS must expand to other markets because of the slowdown in Spain. Further, they see Hochtief with a huge coming position constructing in the offshore wind sector. In fact, hochtief is in a 50% partnership with Beluga Shipping to not only construct, but build construction and transport vessels.

this could be one reason why the german gov is taking a stance to prevent the takeover.

all taking place on the new battlefield of market protectionism (see cf. german giants taking on China over IP, tech transfer steals, and low yuan; or france/Alsom taking on Eurotunnel/Siemens; dollar devaluation.)

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Fri Oct 15th, 2010 at 05:25:39 AM EST
[ Parent ]

Re: Economy and Finance (4.00 / 2)

Crazy Horse:

this could be one reason why the german gov is taking a stance to prevent the takeover.

Germany joined the EU to take over others' firms, not the other way around.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Fri Oct 15th, 2010 at 05:44:29 AM EST
[ Parent ]

Re: Economy and Finance (none / 0)

??? SPD chief Gabriel has already called on Merkel to intervene, as well as calling for changes to law to make it harder for hostile takeovers. bruederle has so far refused, but as in Opel, some action is quite likely.

"Life shrinks or expands in proportion to one's courage." - Anaïs Nin

by Crazy Horse on Fri Oct 15th, 2010 at 06:20:01 AM EST
[ Parent ]

Re: Economy and Finance (none / 0)

There is one set of rules for German firms and one for others, obviously.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Migeru (migeru at eurotrib dot com) on Fri Oct 15th, 2010 at 06:25:05 AM EST
[ Parent ]

Re: Economy and Finance (4.00 / 3)

Pardon? Uhhh...give me a second...I'm updating the Colonialism Disguised As Capitalism Handbook.

Never underestimate their intelligence, always underestimate their knowledge.

Frank Delaney ~ Ireland

by siegestate (siegestate or beyondwarispeace.com) on Fri Oct 15th, 2010 at 07:29:16 AM EST
[ Parent ]

European Salon de News, Discussion et Klatsch - 15 October | 141 comments (141 topical, 0 editorial, 0 hidden)

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