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Redflex Rejects Offer from Carlyle, Macquarie

Australia’s Redflex Holding lost a third of its market value Tuesday after rejecting a 303 million Australian dollar ($327 million) takeover bid by the Carlyle Group and investment bank Macquarie Group Ltd., Reuters reported. Private equity firm Carlyle and Macquarie last week raised their offer to A$2.75 from A$2.70 per share. Redflex manufactures and operates highway safety equipment such as digital speed and red-light cameras.

(Reuters) – Australian traffic firm Redflex Holdings lost a third of its market value on Tuesday after its shareholders rejected a A$303 million ($327.2 million) takeover offer by The Carlyle Group and investment bank Macquarie Group Ltd .

Shares in Redflex fell as much as 36 percent after shareholders voted on Monday to reject the A$2.75-per-share bid. The stock was 29 percent, or 76 cents, lower at A$1.85 by 0513 GMT.

While Redflex’s board supported the takeover bid, former chairman Chris Cooper whose interests control 11.1 percent of the company voted against the offer, according to local media.

Private equity firm Carlyle and Macquarie last week raised their offer to A$2.75 from A$2.70 per share.

Headquartered in Australia and predominantly based in the United States, Redflex manufactures and operates highway safety equipment such as digital speed and red-light cameras.

The shareholder vote was the second time a private equity firm’s attempt to acquire an Australian company was rejected this week.

Australian services firm Spotless Group turned down a $700 million bid from U.S. private equity firm Blackstone, according to sources. Spotless shares rose 4.6 percent on Tuesday as investors bet on further offers for the company. Redflex is being advised by Greenhill Caliburn. ($1 = 0.926 Australian Dollars)

(Reporting by Michael Smith; Editing by Ed Davies)