$1bn takeover bid for Transfield Services

Transfield Services has received a takeover bid of close to $1 billion from Spanish infrastructure group Ferrovial Servicios. Ferrovial Servicios has offered $1.95 for each share, representing a 30% premium on the company’s last closing price of $1.50.

However, the board of contractor Transfield Services has advised shareholders to take no action.

“The Board of Transfield Services has considered Ferrovial’s proposal with the company’s advisers and has formed the view that the price of $1.95 per share does not reflect the underlying value of Transfield Services shares,” chairman Diane Smith-Gander said.

Transfield said it is willing to give Ferrovial access to its books for “limited due diligence on a non-exclusive basis”. Shareholders will be advised of the outcome of the bid, and a financial update will also be provided at the company’s 5 November annual general meeting.

The company revealed last month it had achieved a full-year net profit of $53 million, turning around a $254.5 million loss a year earlier.

The takeover bid follows the decision last month by Transfield Holdings, a privately held company owned by the contractor’s founding family, to sell its 11.3% stake in Transfield Services for more than $90 million.