Broadspectrum to oppose ferrovial´s bid

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Broadspectrum to oppose ferrovial´s bid

Ferrovial recently opened its takeover offer for Broadspectrum to investors, in its second attempt to acquire the firm formerly known as Transfield Services. The dispatch of the takeover offer to shareholders allows investors to accept Ferrovial’s $1.35 per share bid which is likely to be opposed by Broadspectrum management.

Broadspectrum has already hit back at Ferrovial, but declined to make a formal recommendation until more details emerged. The company has drafted Macquarie as defence adviser.

In December 2015, Ferrovial submitted a takeover offer to acquire Broadspectrum for A$1.35 per share, which implied an investment of A$715 million (US$502.6 million).

Broadspectrum achieved in its financial year 2015 (ending in June) revenues of A$3,800 million and EBITDA of A$265 million. The company currently employs more than 25,000 people.

The offer was 65¢ lower than the A$2 a share Ferrovial previously offered to Broadspectrum's board in December 2014, an offer which valued the Australian group at A$1 billion. It was also well below the value of Broadspectrum's shares in May, when they were trading at around A$1.70 and it was also less than Broadspectrum's average share price over the last 12 months of $1.36.

Broadspectrum is an Australian publicly listed corporation providing operations and maintenance, asset management, project and capital management outsourcing and infrastructure development services to the resources and industrial, infrastructure services and property and facilities management sectors. The company operates in Australia and New Zealand, Canada, the United States, Chile, Brunei, New Caledonia, and The Philippines.

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