Downer EDI has again extended its offer for takeover target Spotless Group, with the hostile bid now stretched to June 29.
Downer announced the extension on Friday, also saying it will accelerate payments to accepting Spotless shareholders if its stake in the target passes 50 per cent by June 16.
Chief executive of Downer, Gran Fenn, said the company was maintaining its offer at $1.15 a share and described the price as "full and fair" and representing a 59 per cent premium to Spotless's share price when the bid was launched in March.
"The alternative for Spotless shareholders is to put their faith in a company which saw a share price decline of almost 70 per cent in the two years prior to the announcement date and which has acknowledged the risks around the execution of its strategy reset," Mr Fenn said in a statement.
Spotless's board has urged shareholders to reject Downer, saying they can do better in future by retaining their ownership as the company goes through a strategy reset to boost earnings growth.
Downer has declared its $1.15 bid - which values Spotless at $1.3 billion - as final in the absence of a higher competing bid.
It will now waive outstanding defeating conditions if it reaches 50 per cent acceptances by June 16, with accelerated payments to start on June 19.
Downer shares were up 2.5 cents to $6.425 at 1048 AEST while Spotless shares were up three cents to $1.15.
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