UBS is seeking to buy a stake in Spotless Group on behalf of...

UBS is seeking to buy a stake in Spotless Group on behalf of ASX-listed Downer, sources told Street Talk on Monday, ahead of a planned $1.2 billion takeover bid.
The bank was in the market seeking to buy Spotless shares at $1.15 a share, according to terms sent to fund managers.
The bid was at a 59 per cent premium to the cleaning and catering contractor's last close.
The buying was on behalf of Downer and it was seeking a 15 per cent stake, but it willing to take a bigger position.

According to terms, the acquisition would be followed by a takeover bid at the same price.

It's understood Downer already has a 5 per cent interest in Spotless.
The takeover bid would be subject to Downer receiving regulatory approval, a 90 per cent minimum acceptance level and Spotless hitting its earnings guidance.
The bid is expected to land on Tuesday morning, should Downer get the stake as targeted on Monday night.
Downer's raid is expected to surprise Spotless, whose shares have been heavily sold since an earnings downgrade in November 2015.

UBS is advising Downer, while Goldman Sachs is tipped to be in Spotless' corner.


Read more: http://www.copyright link/street-ta...roup-for-downer-20170320-gv285c#ixzz4bqMxKa3o
Follow us: @FinancialReview on Twitter | financialreview on Facebook