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Bilfinger Berger in £321m rights issue to buy Austrian engineer

Bilfinger Berger is to raise €350 million (£321million) in rights issue to acquire Austrian engineering company MCE group.

The German construction giant, which turned over of €9.7 billion in 2008, is issuing around 8.83 million new shares to fund the deal, increasing its share capital by 25 per cent, the Wall Street Journal reported.

Bilfinger Berger is Germany’s second largest construction company, and is involved in various high-profile UK projects. It is constructing the new Edinburgh tram line, and is part of a consortium bidding for Crossrail tunnelling contracts.

The proceeds of the rights issue - around €270 million will be primarily used for the acquisition. Investors will get one share for every four they own, at a subscription price of €30.60 per share.

MCE turned over €920 million last year and is involved in engineering projects across central and eastern Europe.