Bradken pulls Austin Engineering acquisition offer

Bradken has withdrawn its acquisition offer for Austin Engineering.

It initially made the offer late last year.

At the time is said it had made a"non-binding and indicative proposal to acquire all of the ordinary shares in Austin that it does not currently own".

Bradken held around 21.52% of Austin as of December 2013.

However it has now withdrawn the offer, after "noting the recent interim results of both companies".

Bradken stated that its "fixed exchange ratio offer of .75 Bradken shares for one Austin Engineering share (made on 18 December) is no longer earnings accretive to Bradken shareholders and while the company currently intends to maintain a strategic holding in Austin, it has terminated discussions in relation to its proposed transactions".

Austin has welcomed the news, but added that "the Board's view remains that there is potential benefit in combining the companies but that the scrip consideration proposed undervalued Austin relative to Bradken".

In the meantime the company will continue to focus on opportunties in South America.

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