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Last Updated: Wednesday, 16 April, 2003, 08:20 GMT 09:20 UK
Spanish firm set to buy Amey
Troubled engineering firm Amey has agreed to an 81m ($127m) takeover by Spanish construction company Grupo Ferrovial.

The Spanish firm is offering 32 pence for each Amey share, compared with Tuesday's closing price of 27p.

The UK firm has been in severe difficulty since it revealed problems with its accounts and the departure of several top executives.

"Despite its financial difficulties in 2002, Amey has a sound portfolio of core businesses and I look forward to working with (the Amey) management team," Ferrovial director Inigo Meiras said in a statement.

Last month, Amey unveiled a loss of 129.5m for 2002, and said it would not be paying any dividends for the foreseeable future.

Change of strategy

Amey took a prominent role in the private finance initiative (PFI), where private companies fund public works in exchange for a guaranteed revenue stream from the government.

But in March last year it unveiled an unexpected loss after it changed its PFI accountancy procedures.

The past six months have seen it shed its chief executive, Brian Staples, and two finance directors.

It is now attempting to withdraw from PFI projects and has focused instead on transport and business services.

The company manages and maintains 25% of English and half of Scottish trunk roads and holds a 12% share of the rail maintenance market.


SEE ALSO:
Amey sees light at end of tunnel
26 Mar 03  |  Business
Amey chief to step down
02 Jan 03  |  Business
Amey disappoints investors
30 Dec 02  |  Business


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