Downer in board bid

ENGINEERING group Downer EDI is seeking seats on the board of takeover target Spotless after claiming a majority stake in the facilities services company.

Downer announced yesterday it now has 50.3 per cent of the issued shares in the MCG caterer, after launching its hostile takeover bid in March.

Spotless, which has opposed the bid, yesterday said Downer wanted seats on Spotless’ board in line with its controlling interest and it would now talk with Downer about “the composition of the board”.

“The board continues to believe that the Downer offer does not represent adequate value, but will engage with Downer in the best interests of the company and all shareholders,” Spotless chairman Garry Hounsell said.

Downer is urging the remaining shareholders of Spotless to accept its offer of $1.15 per share, with the deadline now automatically extended from Thursday to July 11.