Broadspectrum/Ferrovial remains a close call despite today’s jump in acceptances
The outcome of Ferrovial’s [BME:FER] hostile AUD 1.50 per share takeover offer for Broadspectrum [ASX:BRS] is still too difficult to call despite a jump today in the number of shareholder acceptances, several shareholders and sources close to the situation said.
Shareholder acceptances for Ferrovial’s offer jumped Thursday to 11.46% from 2.09% after the Spanish group last week raised its bid AUD 0.15 from AUD 1.35 per share and declared the offer final. The offer is conditional on 50.01% acceptances.
Shares in Broadspectrum closed up 2.85% at AUD 1.26 today on news of the rise in tendered stock but two smaller institutional shareholders said they still thought the offer would fail to meet the acceptance condition.
One of the shareholders noted the decision is borderline for them.
A source familiar with the situation said undecided shareholders will hold off until the last minute before showing their hand.
Around 9% of tendered shares are held in an acceptance facility which means they can be withdrawn although this is rare. The offer closes on 2 May but can be extended. Any extension has to be declared by 22 April.
Ferrovial has the option of waiving its 50% condition.
As is typical in Australian deals, Broadspectrum’s retail base of close to 20% is expected to back the board’s rejection as is 18.7% shareholder Allan Gray. Invesco, which holds 10.6% in Broadspectrum, will be a crucial vote. So far Invesco has been supportive of Broadspectrum’s rejection of Ferrovial’s previous AUD 1.35 offer. This news service reported that Invesco maintained its support for the board in February when the independent report valuation was reduced to AUD 1.60-1.85p/s from AUD 1.71-1.98p/s.
Hedge funds are thought to hold around 5% to 10% of the register.