SPOTLESS CAVES AND BACKS BID FROM DOWNER

SPOTLESS Group’s directors have done an about-face and recommended shareholders accept a hostile takeover bid from engineering company Downer EDI.

The Spotless board had until Monday recommended shareholders reject the $1.2 billion offer, claiming the catering and cleaning company best known for its long-running contract with the MCG had a bright future under the status quo.

But yesterday, after Downer lifted its stake to 67.3 per cent, Spotless chairman Garry Hounsell said the board now “reluctantly recommend” shareholders accept the offer of $1.15 a share.

The board continued “to believe in the strong under- lying fundamentals” of the group, Mr Hounsell said.

But he added that now Downer had 67.3 per cent and would control most of the board from today “we reluctantly recommend” accepting Downer’s offer.

Spotless, known for its catering contract with the MCG, has changed its tune on Downer EDI’s hostile takeover.