Germany's largest builder Hochtief will hike its capital by around 10 percent in a fresh bid to fend of Spanish predator ACS by driving up the takeover price for ACS' low-ball bid.

Hochtief said on Monday that Qatar Holding will buy 9.1 percent of the new capital stock and that cooperation between the two parties is to "intensify".   

The capital increase is to be carried out by issuing 6.9 million new shares for 57.114 euros cash apiece, below the current share price.   

Hochtief stock extended gains in early trade after the announcement and was up 2.7 percent at 61.72 euros by 0916 GMT, outperforming Frankfurt's 0.5 percent stronger mid-cap index. ACS shares were up 1 percent at 35.525 euros. Existing shareholders will be excluded from the capital increase.   

Last week, ACS formally launched its 4 billion-euro ($5.4 billion) hostile bid for Hochtief, after a 10-week battle of words with Germany's largest builder.

ACS said it would offer eight of its own shares for every five of Hochtief's, a deliberately underwhelming bid that is unchanged from ACS's initial proposal made in mid-September.   

The low-ball offer is expected to see few takers, leaving the Spanish firm free to increase its current 29.9 percent holding in Hochtief above the 30 percent threshold that triggers a mandatory bid under German takeover rules. - Reuters