The shock from shareholders follows the glowing report the company chairman delivered at the AGM in November stating that group turnover was at record levels with uncompleted backlog also at a new record.

Following this, in the half-year report released in March 2003, it was revealed that net profit was up 36% and turnover up 31%.

In an announcement just one month later than the release of the company's interim report, the independent directors, with reference to a scheme whereby the 63% controlling shareholder takes out the minorities, have said that they "intend to recommend the proposal which is at a price per share comparable with recent trading" being $1.54.

This happens to compare with net tangible assets a share as stated in the interim report of $2.38 and capitalises the whole company at approximately $65 million against shareholders' funds of $104 million.

Recently, McConnell Dowell has had a series of project and cash flow-related disputes, with creditors of a Vietnamese project taking legal action against the Australian company due to non-payment.