Maintenance and asset management business Transfield Services has rejected a $1 billion takeover bid from Spanish infrastructure group Ferrovial.
The $1.95 a share offer, about 30% more than the last market price, was rejected by the board of Transfield, a company founded by the Belgiorno-Nettis family.
Diane Smith-Gander, Transfield’s Chairman, says the offer price does not reflect the underlying value of Transfield Services’ shares.
She says the board believes that shareholders interests are best served by exploratory discussions with Ferrovial.
Transfield says trading this quarter has been strong with a good pipeline of growth in energy, defence, government services and infrastructure.
The company announced $73 million underlying net profit for the the year to the end of June. Earnings were up 7% to $217 million.
Transfield says it expects to generate earnings in the range of $240 million to $260 million this financial year.
The company’s shares were trading 27% higher at $1.905.