Australia's Ausdrill says Macmahon bid flawed

Ausdrill said in a statement to the Australian Stock Exchange that Macmahon, a fellow mining services firm, had failed to meet the timeframe for applying to have its bid shares listed.

"Macmahon has indicated an intention to apply to court ... for orders rectifying their omission," Ausdrill said.

"Unless such orders are obtained, Macmahon's offer will not be capable of becoming unconditional and Macmahon will therefore be unable to acquire any Ausdrill shares under its bid."

Ausdrill left open the option of contesting such a legal move by Macmahon, saying it was taking legal advice.

Macmahon reserved any detailed comment, but spokesman Gareth Widger said: "We don't consider it to be a major issue and we are likely to respond in due course, probably tomorrow."

Ausdrill say shareholders should reject the bid and instead keep faith with its strategy of pushing deeper into Africa's mining sector, which made up almost a third of its A$187.2 million in first-half revenue.

Ausdrill shares closed on Monday at A$2.37, slightly below the implied offer price of A$2.40. (Reporting by Mark Bendeich; editing by Ben Tan)