Downer lifts stake

ENGINEERING company Downer EDI says it has lifted its interest in takeover target Spotless to almost 30 per cent as Spotless continues to urge shareholders to reject its offer.

Downer says it now has an interest of 29.6 per cent in the contract catering and cleaning business.

It is offering $1.15 for each Spotless share, valuing Spotless at $1.3 billion.

Downer plans to speed up the payment terms if it achieves an interest of at least 50 per cent by today and no “defeating condition” has been breached.

Directors of Spotless have told shareholders they will be better off if they keep their shares as the company resets its strategy to boost earnings growth.