Takeover target Transfield Services fears Spanish predator Ferrovial could become an Australian market rival if acquisition talks fail, and is demanding it sign a confidentiality pact.

Ferrovial is reportedly considering ditching its $1 billion bid for the Australian maintenance and infrastructure firm, two weeks after Transfield rejected its $1.95-a-share offer. The sticking point appears to be Transfield’s wish for the Spanish engineering giant to sign a confidentiality agreement while it examines the takeover target’s books. Transfield…