and a different tak on things form Business Spectator:Macmahon...

and a different tak on things form Business Spectator:

Macmahon Holdings Ltd is considering withdrawing from the West Australian construction sector as it sets out on a rescue raising of approximately $100 million in the wake of two troubling contracts leading to profit downgrades and write-downs, The Australian Financial Review reports.

In September, Macmahon announced a profit downgrade of up to 70 per cent on the back of problems on the Hope Downs contract it has with Rio Tinto Ltd, flagging a move to refocus its WA construction business on smaller, more manageable contracts.

According to the newspaper, analyst speculation since then has focussed on Macmahon completely doing away with its construction business and focusing solely on mining, which has been its strongest performer.

Macmahon's touted exit from WA's construction market would put a further strain on the broad mining services sector, as capital spending by mining companies continues to slow.

The AFR reports Macmahon is said to be seeking $100 million deal, structured like an entitlement offer, through Macquarie Group and Deutsche Bank, with Macmahon's largest to shareholder, Leighton Holdings Ltd set to take up its full allocation of the shares.

http://www.businessspectator.com.au/bs.nsf/Article/Macmahon-mulling-WA-construction-exit-report-pd20121211-2UU94?OpenDocument