Markets Live: Miners Lead ASX Rebound

This is source I found from another site, main source you can find in last paragraph

Downer EDI chief executive Grant Fenn said his company had underestimated the

poor reputation of Spotless Group among investors in the early stages of its $1.2 billion takeover bid, but he's adamant it will be a long-term winner as it targets the fast-growing health and education sector.

Downer had moved to 57 per cent of Spotless by early this morning, and Mr Fenn said he was hopeful of

gaining full control soon, and ultimately de-listing the Melbourne-based company. Downer moved past the crucial 50 per cent mark on Tuesday in its $1.2 billion bid for Spotless.

"This strategy with

services will be a winner, we're very confident of that," Mr Fenn told The AFR's National Infrastructure Summit in Sydney.

But he acknowledged that early in the bid process Downer hadn't paid enough attention to the patchy view of Spotless held among many sharemarket investors. Downer EDI undertook a

$1 billion raising which was poorly received.

"The equity raising didn't go as well as we would like, Mr Fenn said. "We did underestimate the market's view of Spotless."

But he argued the combined operations would be a

long-term generator of solid returns.

"This business should be predictable. Our aim is to make Spotless that way," he said. The Downer share price has recovered to around $6.34 after languishing at $5.21 on April 18, with Mr Fenn pointing out that the stock had outperformed the ASX100 over 1-year, 3-year and 5-year periods. Before the Spotless bid, Downer was trading at $7.18 in mid-March.

Mr Fenn said the average category growth rate in the health and education sectors was forecast to be 4 to 5 per cent annually in the next few years, and there was a lot of upside available as

governments continued to outsource in those areas.

Even though Spotless was the number one player in most of the areas it operated in, there was plenty of growth still available because of the large number of operators involved in various sectors, with the dominant players holding market shares generally in the "mid-teens".

"It's still a

very disaggregated industry," Mr Fenn said.

This is source I found from another site, main source you can find in last paragraph

Source :



Markets Live: Miners lead ASX rebound
Markets Live: $A drops, ASX climbs
Markets Live: Copper down, miners drag on ASX
Rebounding banks lead Aust shares higher
Asia Markets recap: Stocks seeking rebound
Miners poised to lead ASX lower at open
Trading Day blog: live markets coverage; Bull call on market under ALP; plus analysis and opinion
Asian Markets Mostly Lower Amid Cautious Trades
Markets live: FTSE bounces back as China injects fresh stimulus after stocks crash in country's 'Black Tuesday'