Ann: Transfield Services receives further proposal from Ferrovial, page-8

Well, good old hindsight. Convenient market behaviour justifies the above comment. ie asx down 60pts. I got in yesterday at 1.54, could have sold the same day for a profit but decided to hold and see how it goes. The fact is many entries of this nature can provide a good result so your comment regarding it 'falling' is flawed.

To address your later question of value:
1. Look at the recent chart history.
2. TSE regarded the recent offer as a lowball, so they see more value themselves which I believe is a good sign. There was good buying volume after the announcement.
3. The analyst consensus price from a very well regarded fundamental analysis tool is 1.99.