Spotless Group's directors have backflipped and recommended shareholders accept a $1.3 billion takeover bid from engineering company Downer EDI.

The Spotless board had until Monday recommended shareholders reject the offer but on Tuesday said they had changed their minds, “reluctantly” recommending shareholders accept the offer. “We continue to believe in the strong underlying fundamentals of the Spotless business, however now that Downer owns 67.279 per cent of Spotless and…