STOCKS NEWS EUROPE-Ackermans, CFE leap after dredging merger deal

Shares in Belgian holding company Ackermans & Van Haaren and building conglomerate CFE leap after the former becomes a majority owner of the latter and key asset, dredger DEME, comes under sole ownership.

CFE shares climb as much as 18.9 percent to a two-year high of 51.32 euros and Ackermans, a member of Belgium's blue-chip Bel-20 index, hits a six-year high of 73.80 euros, a gain of 4.4 percent.

Analysts say the key for both is exposure to dredger DEME, jointly owned by Ackermans and CFE since 1974.

"For CFE shareholders, the exposure doubles and its lesser results in construction halve. As a conglomerate it was trading at a discount to the likes of pure (Dutch) dredger Boskalis," said Wouter Vanderhaeghen at KBC Securities.

Ackermans, he added, had carried out a 'master stroke'.

"They go from co-control (of DEME) to full control, with only limited cash out," he said.

Ackermans took a 60.39 percent stake in CFE by swapping its 50 percent share in DEME for shares in CFE and buying half of the stake of France's Vinci (Paris: FR0000125486 - news) in CFE for 45 euros per share, at a total cash cost of 138 million euros ($186.9 million).

Reuters messaging rm://philip.blenkinsop.thomsonreuters.com@reuters.net ($1 = 0.7384 euros)