STOCKS NEWS EUROPE-Hochtief shares gain on IPO plans

Shares in Hochtief (HOTG.DE) rise 2.2 percent, making them the sharpest gainers among German midcaps .MDAXI, as Germany's largest construction company announces plans to list its concessions unit on the regulated market of the Frankfurt Stock Exchange this year. Traders say the IPO should help to finance further growth of the business and to make the value of the unit more transparent.

"(This is) positive news for Hochtief. (But) there may be some profit taking later as the move was expected by most market players," says a Frankfurt-based trader.

Analyst Ralf Doerper from WestLB says: "Although we believe that the market has started to price in a possible transaction in concessions since the first announcement made in August, we believe there is further valuation upside."

A person from the finance industry told Reuters that Hochtief had received positive responses from potential investors. [ID:nL5390247]

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