An article in today's AFR reports this: Ferrovial's offer has a minimum acceptance condition of 50.01 per cent, but does not need approval from Broadspectrum's board to proceed.
However, Ferrovial is understood to be keen to get a board recommendation if possible, and some of the Spanish company's executives will visit Australia next week.
If Ferrovial is not successful in acquiring at least 50.01 per cent of Broadspectrum, it will ask for board seats, call for a "general operational review," and acquire the contractor's shares on the open market.
Ferrovial has also made a submission to the Foreign Investment Review Board.
If Ferrovial succeeds with the takeover, it intends to restructure Broadspectrum to diversify its earnings away from the controversial detention centre contracts, but will keep the contracts.
It sounds to me like this first offer is part of a tactical move on the part of Broadspectrum. They intend to take it over and that means a higher offer will be necessary.
BRS Price at posting:
$1.26 Sentiment: Hold Disclosure: Held
