Spanish giant Ferrovial's final bid for Broadspectrum rejected
Australian services provider Broadspectrum on Wednesday rejected a sweetened final takeover offer by Spanish construction giant Ferrovial, saying it continued to undervalue the company.
The Madrid-listed Ferrovial, which specialises in infrastructure and construction with a presence in more than 25 countries, boosted its bid price by 11 percent to Aus$1.50 a share, valuing Broadspectrum at Aus$769 million (US$580 million).
It was its third tilt at the company after an initial offer of Aus$2.00 a share in October 2014, valuing Broadspectrum, then known as Transfield Services, at around Aus$1.0 billion.
This was turned down but since then Broadspectrum shares have slumped and Ferrovial returned with a new all-cash offer of Aus$1.35 a share in December, which was again knocked back.
Broadspectrum operates in the defence, property, infrastructure, resources and industrial sectors across nine countries, providing logistics, facilities management, consulting, maintenance, and business support services.
Ferrovial chief executive Santiago Olivares called the new offer "compelling" but Broadspectrum, which has battled falling earnings in its resources and industrial business, recommended it be rejected.
"While the increase in the offer is positive for shareholders, the revised offer continues to undervalue Broadspectrum's shares," said the company's chairman Diane Smith-Gander.
Ferrovial declared the offer its best and final one.
Broadspectrum shares were up 2.8 percent at Aus$1.28 in early afternoon trade.
© 2016 AFP