Spanish infrastructure group Ferrovial will release its bidder's statement for Broadspectrum this week, formally opening its $715 million takeover offer for the Australian contractor.
Ferrovial, which is offering Broadspectrum investors $1.35 per share, is required to keep the unsolicited takeover offer open for at least a month.
Broadspectrum, which was formerly known as Transfield Services, is expected to release its target's statement, which will contain a statement from the company's board on whether or not investors should accept the offer, in early January.
The contractor must release its target statement within two weeks of the bidder's statement.
Broadspectrum chairman Diane Smith-Gander met with Ferrovial executive Santiago Olivares last week.
Ms Smith-Gander and Mr Olivares are understood to have explained their respective positions on the takeover proposal to each other but no further meetings between the two companies are expected before Christmas.
Mr Olivares is also believed to have met with some of Broadspectrum's top investors last week. Broadspectrum's top 15 shareholders control about 72 per cent of the company's register.
Broadspectrum has no reason to rush its decision on Ferrovial's offer. The longer it takes to release its target's statement, the more time it has to tempt potential counter-bidders.
BRS Price at posting:
$1.27 Sentiment: Hold Disclosure: Held
