Even if there was no TO offer for BRS and the company had not announced a share buyback starting 9th March, at $1.16 the stk is undervalued in its own right. I'm not going to reprint the numerous reasons i went long in BRS as its all on previous threads. The HY report demonstrates the strong situation BRS is in.
But I now read that BRS (see below) may be willing to increase its TO offer from the current level of $1.35, and that BRS board would 'consider a new higher offer'. I reckon Ferrovial will be shocked when they discover their bid for Laing O'Rourke is nowhere near the mark and that BRS is far cheaper/better value deal. But it all takes time.
And Ferrovial don't have time. BRS share buyback due to kick off on 9th Mrach. Board have rejected the $1.35 offer as 'way too low' so one assumes the buyback will at least reach/match this price. BRS slashed debt by a massive 109million over the past year and with strong cashflow in a position to get buyback happening.
I wonder what Ferrovial willl do? They seem to be in a haze.
from the SMH business section. For full article click on link below.
'Spanish infrastructure group Ferrovial has signalled it remains interested in Broadspectrum despite a stalemate in its $715 million hostile takeover bid for the Australian contractor.
A desire for geographical diversification is one of the "key elements" behind Ferrovial's potential acquisition of Broadspectrum, Ferrovial executives told analysts in a conference call following the Spanish group's full-year results last week.
Buying Broadspectrum would allow Ferrovial to enter new markets like the US and Canada as well as gaining capabilities in new markets such as natural resources, oil and gas, and telecommunications, executives said.
While Broadspectrum's contracts were typically shorter than Ferrovial's services contracts in the UK and Spain, the Spanish group believes that it can lengthen them.
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"In Europe, the services sector is more developed and we enjoy longer-term contracts, but that is something we think will be replicated in the medium term in other geographies, including Australia and the US," an executive said.
Executives on the call, which included Ferrovial chairman Rafael del Pino and chief executive Íñigo Meirás, declined to comment on their specific intentions for Broadspectrum or any other merger and acquisition activity.
Ferrovial is believed to be among the companies looking at Laing O'Rourke's Australian business after it was put up for sale.
Board and investors rebuff offer
Broadspectrum's board has rejected Ferrovial's $1.35-per-share takeover bid, and only 1 per cent of Broadspectrum investors have accepted the offer, which is due to close on March 21.
Broadspectrum's shares closed at $1.14 on Friday.
The contractor's board is awaiting for the next move from Ferrovial. The Spanish group could raise its bid to engage Broadspectrum's board, declare that its $1.35 per share offer is final, or walk away.
Ferrovial has plenty of cash to increase its offer. Its net income rose by €79 million to €720 million in calendar 2015, and it has operating cash flow of €889 million ($1.36 billion). Its shares are trading at around €18.39, down 3 per cent over the past 12 months.
Broadspectrum chief executive Graeme Hunt has said the board remains open to talks with Ferrovial if it receives a higher bid, and has not ruled out considering an offer below the "fair value" range of between $1.60 and $1.85 a share suggested by independent expert EY.
Ferrovial has received the necessary approvals from the Foreign Investment Review Board and New Zealand's Overseas Investment Office.
The Spanish group told Broadspectrum investors in early February that it was reviewing its takeover bid following a delay in the award of five-year detention centre contracts.'
Read more:
http://www.smh.com.au/business/ferr...higher-bid-20160226-gn4mzr.html#ixzz41i5QJGRq
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