Ferrovial Said to Consider Boosting Offer for TransfieldManuel Baigorri
Ferrovial SA, a Spanish infrastructure company, is in advanced talks to raise its bid for Australia’s Transfield Services Ltd, according to a person with knowledge of the matter.
Ferrovial carried out due diligence on Transfield’s assets and plans to boost its offer to between A$2 ($1.63) and A$2.05 a share imminently, the person said, asking not to be identified because the deliberations are private. No final decision has been made and there’s no certainty a new offer will lead to an agreement, the person said.
Transfield said in October that Ferrovial’s non-binding offer of A$1.95 a share in cash didn’t reflect the underlying value of the company. Transfield shares closed at A$1.79 yesterday, valuing the company at A$917 million.
A representative for Ferrovial declined to comment. David Jamieson, a spokesman for Transfield, didn’t immediately respond to a call seeking comment.
Founded by Italian immigrants in 1956, Transfield built Sydney’s Harbour Tunnel and operates the harbor’s ferry network as well as maintaining and drilling oil and gas projects and the approach road to San Francisco’s Golden Gate Bridge.
Ferrovial, which operates in more than 25 countries and has about 57,000 employees, manages transportation assets from Canada’s 407 ETR highway to London’s Heathrow Airport.