Macmahon Holdings Ltd's failure to rouse up a relevant interest in Ausdrill Ltd of more than one per cent has played into the takeover target's hand nicely, as it issued its target statement today.
Macmahon Holdings Ltd's failure to rouse up a relevant interest in Ausdrill Ltd of more than one per cent has played into the takeover target's hand nicely, as it issued its target statement today.
Ausdrill continued its line that Macmahon's offer of 1.45 shares for each Ausdrill share was inadequate and opportunistic.
Ausdrill chairman Terry O'Connor said in a statement today that the offer did not fully value Ausdrill's shares and shareholders were being offered shares in a lower return business with increased risks.
Mr O'Connor added that under stock market rules, Macmahon is obliged to tell the market each day of any movements greater than one per cent of its relevant interest in Ausdrill shares.
"The fact that no such notice has been lodged by Macmahon suggests that less than 1% of Ausdrill shareholders have so far indicated that they would be prepared to accept Macmahon's all scrip offer, which has been open for acceptance since 6 June 2008," he said.
Mr O'Connor reiterated that 25.7 per cent of its shareholders had confirmed in writing that they would not accept Macmahon's offer.
The shareholders, along with the increased holding of Ausdrill shares by its board of 15.25 per cent, represented nearly 41 per cent that would not accept Macmahon's offer.
Meanwhile Macmahon released a statement today saying that Ausdrill has failed to make a credible case for not accepting its offer.
In response to the target statement, Macmahon said Ausdrill had not offered its shareholders any alternative to the offer.
"Ausdrill has asked its shareholders to make an act of faith that Ausdrill will improve on its performance of recent years and deliver higher returns and higher earnings per share growth to its shareholders," Macmahon said in a statement.
"Ausdrill has made strong statements about the value of its shares but has failed to seek the views of anIndependent Expert who could provide shareholders with a detailed analysis and an objective, unbiased opinion on whether Macmahon's Offer is fair and reasonable.
"Importantly for shareholders, Ausdrill shares are trading at current levels only because of Macmahon's Offer.
Ausdrill's share price would most likely fall heavily if the Macmahon Offer lapses with no alternative proposal on
the table."
Shares in Ausdrill closed up 1c to $2.56 while shares in Macmahon climbed 3c to close at $1.70.
The offer remains open until 18 July.
