Transfield under $1 billion takeover offer from Spanish suitor

The Transfield Services board has advised shareholders to take no action regarding a cash $1 billion takeover bid from Ferrovial Servicios SA.

Ferrovial Servicios, the Spanish infrastructure company, has offered $1.95 for each share.

“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.

The company’s shares closed at $1.50 on Friday, giving it a market capitalisation of $769 million.

Transfield provides operations and maintenance, asset, capital and project management services to the resources, industrial, infrastructure services and property sectors.