FCC's insolvent Alpine Bau faces break-up

Mon Jun 24, 2013 8:23am EDT
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VIENNA/MADRID (Reuters) - Alpine Bau, the insolvent Austrian arm of Spanish construction group FCC (FCC.MC: Quote), faces being broken up after the failure of late-night talks to save the company in its current form, putting up to 5,000 jobs at risk.

The head of Alpine Bau's works council, Hermann Haneder, said on Monday that a consortium of rival builders is now looking at taking over parts of the company, either as provincial divisions or for individual projects.

"The question is, will the workers be kept on when the projects are finished?" said Haneder, who took part in the last-ditch talks.

The consortium includes Austrian builders Strabag (STRV.VI: Quote), Porr ABGV.VI, Swietelsky SWETL.UL, Habau and Felbermayr, Haneder said.

Porr, which was in talks to buy parts of Alpine Bau when it announced its insolvency last week, said that it is still in negotiations.

"We cannot say anything at present about the number of workers and projects," a Porr spokeswoman wrote in an email, adding that the company would take over any joint projects on which it had been working with Alpine.

Strabag said it was not interested in assets but was assessing whether certain projects might be of interest.

Alpine Bau did not immediately respond to requests for comment.

FCC finally pulled the plug on Alpine last week after pouring hundreds of millions of euros into the company, which had taken on risky projects in central and eastern Europe and was unable to sell assets to raise cash.   Continued...