The Spanish construction giant yesterday sold a 3.69 per cent stake in the company. Its holding is now reduced to 14.8 per cent.
The construction firm has previously stated it wanted a 30 per cent stake in Iberdrola. The utility has baulked at ACS wielding so much influence but looked to be powerless when new laws were passed in Spain lifting the 10 per cent cap on total voting rights for single shareholders. Last week Iberdrola lost a legal challenge to reverse that law.
Less than a week later, Iberdrola will likely portray the share sale as a sign that ACS’s bid to achieve more control, and a seat on the board, is starting to unwind.
ACS had stated publically that it would not sell shares for less than €4. Yesterday it sold them at €3.62. Compared to the price ACS paid, analysts estimated that could equate to pre-tax capital loss of over €700 million.
Shares in the two companies were suspended in Madrid this morning before both returning to suffer heavy falls.