News: PRN UPDATE 1-Australia's Perenti considers takeover of Downer mining arm, page-6

I wouldn't be surprised if PRN directors walk away from Downer M&A option. Downer half year results are a shocker, largely driven by loss making mining division.

From the AFR...
Downer EDI profit falls 35pc on 'risky' construction.
Downer EDI chief executive Grant Fenn said the contractor would keep reducing its exposure to risky construction work after delivering a 35 per cent drop in interim net profit to $91.4 million.
Downer slashed its full-year profits guidance in January by $65 million due to cost blowouts on two projects, APA Group's Orbost gas plant in Victoria and its construction of a processing plant for OZ Minerals' Carrapateena copper gold mine project in South Australia in a joint venture with Ausenco.
The profit warning caused its shares to slump 18 per cent. The stock has not recovered from the losses, closing at $7.47 on Tuesday.
Downer's engineering, construction and maintenance division was its worst performer in the first half, taking a loss of $37.4 million compared with a profit of $22.4 million a year earlier.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) were weaker in its utilities and facilities divisions, but rose in its mining and transport businesses.
Transport is Downer's biggest profit generator, contributing $108 million in earnings in the first half, up from $87.5 million a year earlier. The contractor told analysts on Wednesday that it is focusing on winning secure long term contracts in services, such as operating and maintaining businesses because they have lower risks than construction projects.
It wants to increase its exposure to urban services and flagged it could make "selective acquisitions.
Downer also confirmed on Wednesday that it would get rid of both its mining and laundries businesses to boost shareholder returns and reduce debt. The exit process for mining continues with a number of bids being received last week, ranging in price and conditionality, "Downer said. "These bids are being assessed along with other exit alternatives including a demerger."