Shares in maintenance and asset management business Transfield were sold down more than 7.5% after the contractor rejected an improved $1 billion takeover bid from Spanish group Ferrovial Servicios.
The new bid for Transfield, a company founded by the Belgiorno-Nettis family, lifted the cash per share offer to $2 from $1.95.
“The Board of Transfield Services has considered Ferrovial’s proposal with the Company’s advisers and has formed the view that the new price of $2 per share still does not reflect the underlying value of Transfield Services shares,” said Diane Smith-Gander, Transfield Services Chairman.
Transfield Services is not expecting further engagement 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.
Its shares are trading today 7.5% down to $1.65. The price has been around $1.905 since the takeover bid.