Downer EDI is reported to be in the market for shares in Spotless Group ahead of launching a $1.3 billion bid for the services contractor.
The Australian Financial Review says UBS is seeking up to 15 per cent of Spotless at $1.15 a share, well above today’s close of 72.5¢.
The purchase would be followed by a full takeover bid to be announced tomorrow, it says.
Spotless provides services including cleaning, waste management, catering and maintenance for clients such as sporting stadiums, hospitals and aged care homes.
No immediate comment about the AFR report was forthcoming from either Spotless or Downer EDI.
Spotless recorded a $33 million profit for the December half-year on $1.4 billion of revenue.
Shares in the company have fallen from 95¢ just three weeks ago. At today’s close, it is capitalised at $796 million.