Ausdrill down 10% on takeover talks collapse

The share price of Canning Vale-based Ausdrill Ltd has dropped 10.1 per cent following the company's off-market announcement that takeover talks with an unidentified buyer had ended.

In the announcement, the company blamed recent instability in the private equity markets for the breakdown in talks, saying they had not been able to agree on terms.

Ausdrill had been approached by another buyer that dropped out of contention before the subsequent bid.

Ausdrill was trading at $2.31 at 11:00 WST, down from yesterday's closing price of $2.57.

The full text of a company announcement is pasted below

Ausdrill Limited refers to its announcement dated 13 August 2007 when it confirmed that it was in continuing discussions with a party which had expressed an interest in acquiring all of the shares in Ausdrill.

Ausdrill wishes to announce that recent instability in the private equity markets have had the consequence that it has not been possible to reach an agreed position on the terms upon which the matter might proceed. Discussions with the party have now ceased.