Ferrovial concerns of Budimex liquidity limits ownership

Spanish construction group, Ferrovial, which currently owns a 47% stake in Budimex S.A. intends to help the Warsaw-based company by equipping it with knowledge in new project areas and providing financial support for new building investments. The strategic investor is satisfied with its current holding and is not planning to further increase its control over the Polish company and in fact approved a merger between Budimex and Mostostal Krakow which will dilute its stake to 42%. Ferrovial believes increasing its involvement to 51% would decrease the Polish company's liquidity and put Budimex presence on the Warsaw Stock Exchange (WSE) in jeopardy. According to Budimex president, Marek Michalowski the company will step up its attempts to win the license for highway construction together with the Spanish company. He also confirmed that Budimex wants to acquire a stake in Dromex from Bank Handlowy and the Poland Growth Fund but will not pursue any further takeover of Hydrobudowa Gdansk. (Parkiet, page 12, Puls Biznesu, page 11) P.S.