Rothschild, financial adviser to Spanish building and services company Grupo Dragados, has its work cut out persuading investors and analysts that the €756m ($653m) being offered for Dutch rival Hollandische Beton Groep (HBG) is not far above the odds.

Dragados has agreed to pay HBG shareholders €21.25 per HBG ordinary share (including 2001 dividends) for 100% of the company. This represents a premium of 57% to the closing price on February 4, 2002, or a premium of 60% to the average closing HBG share price for the last 30 days. Lazard is advising HBG.