Sacyr may yet sell Eiffage stake in seat dispute

Spanish property development company Sacyr Vallehermoso may sell its 32,1% stake in French builder Eiffage due to the latter's refusal to offer the Sacyr a seat at the board table, according to the business website elConfidencial.com.

A day earlier newspaper La Tribune said Sacyr could emulate Belgian group Frere, which sold the 6.1% stake held through French investment vehicle, Compagnie Nationale Portefeuille, days ago. Frere had a representative on the board of Eiffage and Sacyr is said to view the seat as its rightful property. Sacyr has a 32.1% stake in Eiffage, with 33.3% voting rights.

A spokesperson for Sacyr has tried to dampen down the speculation by telling AFX News that the stake 'is not up for sale'. This denial was however weakened somewhat by the admission 'we do not know what will happen in the future.'

Frere had built up its stake for EUR 307 mln at the beginning of 2006, and it was valued at EUR 407 mln when the market closed last Friday. ElPais said Sacyr is competing with Caisse de Depots for the seat. The French state-owned company currently holds around a 10% stake in Eiffage, after it acquired Frere's shares.

Sacyr Vallehermoso said it does not plan to sell its 32.1% stake in Eiffage, dismissing French media reports that the Spanish builder has not ruled out the move. 'We have no plans to sell our Eiffage holding and the stake is not up for sale,' a Sacyr spokesman told the financial agency AFX News.