Macmahon nixes media takeover speculation

Macmahon has entered a trading halt following media speculation over a Chinese takeover.

It came after an unnamed media outlet received a copy of an alleged email conversation between Macmahon's CEO and directors.

The email reportedly discusses an approach from a Chinese joint venture regarding a formal takeover for the contractor at a high premium.

However Macmahon has completely rejected these rumours.

"There was no truth to the matters referred to in the emails and the emails themselves [are] false."

Following this Machmahon has entered a trading halt "given the heightened risk of trading occurring on the back of false information".

It went on to "confirm to the market that no such discussions about a possible offer have taken place.
"Macmahon has no knowledge of who created the false emails and has instructed its lawyers to raise this matter with the ASX and ASIC."

Lawyers for the contractor and ASIC yesterday gathered to discuss the matter.

ASIC has not confirmed whether it has started form investigation yet, but supported the contractor's swift trading halt move, the Australian reported.

Nowadays, with social media and new technology, bogus information about company takeovers can be communicated instantaneously and with little accountability and knowledge of who is behind it," ASIC spokesman Matthew Abbott said.

"Whether ASIC takes enforcement action against such bogus offers depends on a range of factors — has there been actual loss, is an investigation in the public interest and, crucially, is there any evidence?"

The takeover rumours were originally reported late last week.

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