Company news: Holzmann to be saved at last minute

Holzmann, the German construction company with FM interests, is to be saved from insolvency through a last minute intervention from the German chancellor.

The company had been heading from an ominous end after 150 years of trading, but Gerhard Schrsder emerged from over two hours of talks with bankers to say that the end had been put off. The German government has apparently put up DM250m as part of a rescue package for the group.

However, pundits are now predicting that there will be a sell-off of foreign assets Ð including money-making FM and plant engineering activities, particularly in the US Ð to help fund the restructuring process which Mr Schrsder said would ensure long term security for the company. 50% of the company's activities are in Germany where the construction sector is wholly depressed. These sections of the company are not viewed as attractive.

Key assets which are likely to be snapped up by competitors include a US FM sub-arm, Jones Services. Further details of the group's future are supposed to be available today.