Spanish construction and contracting giant, Ferrovial, has lifted its bid for Broadspectrum Ltd (ASX: BRS) ex-Transfield Services to $1.50 per share.

The company says the revised bid is its final offer, but Broadspectrum has again told shareholders to reject the bid, as it is below the independent expert’s valuation.

Chairman Diane Smith-Gander said in a statement, “While the increase in the Offer is positive for shareholders, the Revised Offer continues to undervalue Broadspectrum’s shares.”

Accounting firm Ernst & Young valued the shares at between $1.71 and $1.98 in early January 2016.

In December 2014, Ferrovial had been prepared to offer $2.00 per share according to the company, and Broadspectrum says it is in a much better position now.

The company also announced today that it expects to report underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of between $280 and $300 million for the 2016 financial year (FY16).

Broadspectrum says it is positive about FY17 as well, forecasting underlying EBITDA “to be in excess of $300 million“.

Net debt is also expected to reduce further to between $370 and $390 million by the end of June 2016.

Investors don’t appear to think the takeover will proceed now that Ferrovial has declared the offer Final and Broadspectrum’s board has rejected it. Ferrovial now can’t make another bid, even if it was higher, and Broadspectrum’s share price is up 4% to $1.30 – well below the $1.50 offer price per share.

Now it all depends on how many institutional shareholders take up the offer, with Ferrovial needing 50.1% of all shares to acquire the company.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.