* Prepared to spend more than 1 bln eur FOR acquisitions
* Market expectations of 2010 dividend hike to be met
* To meet 4 percent operating return target in short term
(Adds details, background)
FRANKFURT, Jan 27 (Reuters) - German construction group Bilfinger Berger is prepared to spend more than 1 billion euros ($1.37 billion) on acquisitions in 2011, its chief executive told Reuters.
Herbert Bodner said in an interview published on Thursday that the company's high free float may also make it a takeover target.
Bilfinger is likely to hike its dividend payments for business year 2010 from the 2 euros per share paid in 2009, he added.
"There are no indications that we will not meet our goals for 2010," Bodner says.
The company, which is due to report preliminary full-year earnings on Feb. 14, raised its full year outlook after posting a more than 15-fold jump in earnings before interest and tax (EBIT) for the third quarter of 2010 in November.
At the time, Bilfinger said it expected 2010 EBIT of at least 320 million euros, compared with a previous outlook for 173 million.
"We're not going to hike our 4 percent target for operating return just yet," Bodner said, adding, however, that in the medium-term the 4 percent benchmark could be raised. (Reporting by Hendrik Sackmann, writing by Josie Cox; Editing by Jon Loades-Carter)