Spotless has urged shareholders to “take no action” following Downer EDI’s $1.2 billion takeover offer.
Downer dispatched a Replacement Bidder’s Statement to the shareholders of Spotless Group last week, after the Takeovers Panel announced that it would not halt the bid.
Spotless had asked the panel to delay the dispatch of Downer’s bidder’s statement for the $1.15 per share offer, arguing that the contractor had made “misleading and deceptive” assertions.
However, the panel concluded there was no reasonable prospect that it would make a declaration of unacceptable circumstances, and accordingly, would not conduct proceedings.
The Spotless board confirmed it intends to dispatch a Target’s Statement to shareholders by Thursday, 27 April.
Spotless said Downer’s offer is “hostile and opportunistically time”. The company added that its management and board “have a clear plan to deliver earnings growth and long tern value to shareholders.”
“The offer does not fully recognised the strength of Spotless’ core business and the strategic and financial value of Spotless to Downer,” Spotless said.