Perenti Global Ltd said it was considering buying Sydney-based Downer EDI’s mining servicing business, but dismissed a report of a A$700 million offer, reported Reuters.

Downer is struggling with higher costs arising from loss-making construction contracts due to weak global business investment and a stuttering Australian economy. The New South Wales-based firm slashed its profit forecast last month and flagged restructuring costs.

Perenti, formally known as Ausdrill, said the potential offer value of A$700 million reported by the Australian Financial Review (AFR) was "significantly above" what was being considered. If an offer is made, Perenti said it would consider funding options, including an equity raising.

Source: www.reuters.com

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