📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Broadspectrum cautions shareholders about Ferrovial offer

Published 08/12/2015, 10:54 am
Updated 08/12/2015, 11:00 am
© Reuters.  Broadspectrum cautions shareholders about Ferrovial offer
FER
-
BRS
-

SYDNEY, Dec 8 (Reuters) - Australian detention camp operator Broadspectrum Ltd BRS.AX on Tuesday advised shareholders to take no action on a takeover offer from Spanish infrastructure giant Ferrovial SA FER.MC , suggesting it undervalued the company.

Broadspectrum, the firm running Australia's controversial offshore camps for asylum seekers, said Ferrovial had not had any access to confidential information on which to base its A$692 million ($508 million) offer.

Ferrovial's latest A$1.35 per share offer is well short of the $1 billion it offered a year ago in a proposal that Broadspectrum rejected as too low. Broadspectrum said its suitor had not seen its books since December last year.

Since then, Broadspectrum said it had delivered on a number of milestones, including meeting its upgraded 2015 earnings guidance.

It had also maintained a strong level of work-in-hand of about A$10 billion and secured preferred positions on a number of additional key contracts worth more than A$2 billion.

"In assessing the offer, the board of Broadspectrum notes that the company's shares were trading above A$1.60 as recently as June 2015," the company said.

The deal would put the Spanish conglomerate in line for a five-year immigration detention contract from the Australian government, widely expected to be worth about A$2.7 billion, which Broadspectrum is due to renew in March. Ferrovial-owned interests run prisoner escort services in the U.K. and several prisons in Spain.

Fund manager Allan Gray, Broadspectrum's biggest shareholder with 19 percent, on Monday said the offer was "opportunistic".

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.