Asciano rejects TPG takeover offer

Source: Agencies  |   2008-8-5  |     NEWSPAPER EDITION

SHARES in Australian ports and rail operator Asciano Group soared yesterday after the company received an unsolicited A$2.89-billion (US$2.69-billion) takeover offer from a United States private equity group and a fund.

TPG Capital and independent investment fund Global Infrastructure Partners bid to buy all of Asciano for A$4.40 cash a share, Asciano said in a statement to the Australian Securities Exchange. There was also a share-exchange alternative, Asciano said.

Asciano said in a second statement it would not allow the private equity group and the fund to perform due diligence.

"The directors have considered the proposal and believe it undervalues the business," it said in a statement to the Australia Securities Exchange.

Asciano securities rose 16.39 percent to close at A$4.83 yesterday after coming out of a trading halt.

A representative for TPG and GIP - a fund formed by Swiss bank Credit Suisse Group and General Electric Co - said no further details could be provided at this stage.

Austock Securities analyst Andrew Chambers said the indicative bid was too low. "In our opinion, the indicative proposal of A$4.40 (a share) is a low-balled bid that significantly undervalues Asciano."