Ausdrill rejects Macmahon offer

Drilling contractor Ausdrill Ltd today formally rejected Macmahon Holdings Ltd's $446 million takeover offer, describing it as inadequate and opportunistic.

In a brief statement, Ausdrill's directors said they would continue to review the proposed offer with the company's advisers and would provide further advice to shareholders in due course.

Macmahon announced its unsolicited takeover offer last Thursday, claiming that a combination of Ausdrill's operations with its own contracting and engineering business would be a winner for shareholders of both companies.

Ausdrill's statement is pasted below:  

Macmahon Holdings Limited last week announced an unsolicited takeover offer for all of the shares in Ausdrill Limited (ASX Code: ASL).

The Ausdrill Board has conducted an initial review of the proposed all scrip offer and believes that the offer is inadequate and opportunistic.

Ausdrill has appointed Lazard Carnegie Wylie and Argonaut Capital Limited as corporate advisors and Cochrane Lishman as legal advisors.

The Board will continue to review the proposed offer with its advisors and will provide further advice to shareholders in due course. Meanwhile shareholders are encouraged to take no action.