Detention centre operator Broadspectrum faces an uncertain future as Papua New Guinea plans to shut down its Manus Island facility.
Broadspectrum shares have been halted from trade as the company formerly known as Transfield Services seeks more information from the centre's operator and the PNG and Australian governments.
"The trading halt is requested following press speculation in relation to developments following the PNG Supreme Court decision and their possible impact on Broadspectrum," the company said in a statement.
"Broadspectrum intends to make an announcement addressing those matters."
The company had its contract to operate the Manus Island and Nauru centres extended by 12 months in February, and is among the bidders for a new five year deal.
Broadspectrum recently said it is in a strong financial position, expecting underlying earnings in the range of $280 million and $300 million in the 2015/16 financial year.
But OptionsXpress analyst Ben Le Brun said Broadspectrum was highly leveraged to government detention centre contracts, and its shareholders face "many forks in the road" due to the uncertainty in PNG and an ongoing takeover struggle.
Spanish infrastructure giant Ferrovial's $769 million offer to Broadspectrum shareholders closes next week, and Broadspectrum has advised them to reject the bid.
"Just what impact Manus Island is going to have in terms of earnings capabilities is going to be closely scrutinised and analysed, not only by the analytical and investment community, but also the people at Ferrovial," Mr Le Brun said.
"There's quite a lot of uncertainty and that's indicative of the share price trading at such a significant discount to the bid lobbed by Ferrovial."
Prior to Thursday's trading halt, Broadspectrum shares were valued at $1.115, well below the $1.50 offered by Ferrovial.
It is possible that Ferrovial could lower its bid or withdraw it altogether, Mr Le Brun said.
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