There’s only a week to go and it looks like the second bid for Broadspectrum (BRS) – formerly Transfield Services – by Spanish infrastructure group, Ferrovial, could be heading for the rocks.
The $813 million, $1.50 cash a share hostile takeover bid from Ferrovial will not succeed as it has so far only attracted acceptances from 16.14% of Broadspectrum’s shares
The Spanish company warned investors on Friday night that it would not extend its offer beyond the current deadline of next Monday, May 2.
Ferrovial’s offer is conditional on it acquiring at least 50.01% of Broadspectrum’s shares, so if it does not reach this level, it will return the stock tendered into the offer to Broadspectrum investors and walk away.
The realisation of the bid’s likely failure saw Broadspectrum shares plunge 10.8% yesterday (the biggest fall among the ASX 200 companies) to $1.15.
Ferrovial warned earlier this year that failure to accept its offer would result in Broadspectrum shares falling sharply – it was trading at 83 cents before the latest bid was launched early last December.
