SYDNEY--Transfield Services Ltd. (TSE.AU), an Australian
provider of project-management-and-maintenance services, said
Monday it had received a 1 billion Australian dollar (US$785
million) takeover bid from Spain's Ferrovial SA (FER.MC).
Transfield rejected the offer as too low, but granted Ferrovial
the opportunity to conduct limited due diligence.
"The board believes that shareholders interests are best served
by conducting exploratory discussions with Ferrovial to determine
whether a proposal which would deliver better value to shareholders
can be put forward," it said.
Ferrovial offered A$1.95 per share, representing a 30% premium
to Transfield's most recent trade of A$1.50.
Transfield's business has struggled in recent years, as the
country's slowing mining boom cools demand for its services. Last
year, it wrote down the value of its Easternwell oil services
business after it consistently underperformed expectations since
being acquired by the group in 2010.
Write to Ross Kelly at ross.kelly@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires