* Spotless shares up 12.5 percent on bid
* Spotless directors reject offer
(Recasts with sources on Blackstone, adds shares)
SYDNEY/HONG KONG May 9 U.S. private equity firm
Blackstone has made a conditional A$657 million ($702
million) takeover bid for Australian services firm Spotless
Group which has been rejected by the target, sources
Spotless shares surged 12.5 percent after it said it had
rejected an offer from an unnamed private equity firm.
Spotless said its directors had considered a A$2.50 per
share offer which was rejected because "it does not reflect the
fundamental value of the company in the context of a change of
Two sources familiar with the transaction told Reuters that
Blackstone was the private equity firm involved.
At A$2.50 per share, the bid values Spotless at A$657
million. Spotless shares were trading 24.5 cents higher at
A$2.20 at 0241 GMT.
A Blackstone spokesman declined to comment and a Spotless
spokeswoman declined to provide more detail.
Spotless is a Melbourne-based facilities management firm
which provides services such as maintenance and cleaning.
Blackstone last month agreed to buy Australian property firm
Valad Property Group for A$207 million.
($1 = 0.936
(Reporting by Michael Smith and Stephen Aldred in Hong Kong;
Additional reporting by Megan Davies in New York; Editing by Ed