Spain’s Ferrovial Services has ended talks on taking over project manager Transfield Services after Transfield rejected its latest offer.
Ferrovial Services said on Monday that it had made a new offer to Transfield of $2.00 per share, after undertaking the limited due diligence available and concluding that there were a number of issues affecting value.
“In order to seek a (Transfield) board recommendation, Ferrovial Services took a very long-term view on value and proposed a revised price of $2.00 per share, which has been rejected by the board and therefore discussions have ceased,” Ferrovial said in a statement.
The news sent Transfield shares down by nearly 10 per cent.
In October, Ferrovial offered $1.95 for each Transfield share, which was also rejected by the Transfield board as inadequate.
Transfield said on Monday that it had received an indicative, non-binding and conditional proposal from Ferrovial at $2.00 per share, less the value of any dividends or other distributions after 19 December, 2014.
The Transfield board believed that the new price of $2.00 per share still did not reflect the underlying value of its shares.
“Transfield Services is not expecting any further engagement with Ferrovial at this stage,” Transfield said.
Ferrovial is a major infrastructure operator and municipal services provider in more than 25 countries and employs 65,000 people.