Ferrovial ends Transfield Takeover Talks

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.

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