Spanish suitor Ferrovial has failed to attract much support in its bid for detention centre operator Broadspectrum, just weeks before its takeover offer ends.
Ferrovial, which made a $692 million bid for Broadspectrum in December, said its stake in the company doubled to 2.09 per cent by March 4, according to a notice filed with the ASX.
The small stake increase, however, indicates the offer price of $1.35 a share has failed to enthuse any of Broadspectrum's large shareholders, barely two weeks away from the offer closing date on March 21.
Sydney-based Broadspectrum, formerly known as Transfield Services, has repeatedly rebuffed Ferrovial's approach, with its board saying the bid significantly undervalues the company's business.
Independent adviser Ernst & Young has previously valued Broadspectrum shares at between $1.71 and $1.98 each, well above Ferrovial's $1.35 per share offer.
The Spanish infrastructure giant last month said it would reconsider whether to pursue the takeover due to concerns over how long Broadspectrum will continue to operate Australia's detention centres on Nauru and Manus Island.
The Australian government in February said the company was no longer the sole preferred bidder for a new, five-year contract to run the detention centres.
But Ferrovial executives recently said the Broadspectrum acquisition would allow it to enter new markets in the US and Canada, as well as expand its presence in sectors such as natural resources, oil and gas, and telecommunications.
Last month, Broadspectrum unveiled a stellar profit result and announced a share buyback in the hope of fending off the unwanted takeover.
It share buyback is slated to start this month.
Broadspectrum shares were trading nearly unchanged at $1.21 each on Monday, but have risen by a quarter from their December low of 85 cents.
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