Australia: Asciano urges shareholders to back Brookfield $8.9bn bid

Asciano has urged shareholders to back Canadian giant Brookfield Infrastructure Partners’ $8.9 billion takeover bid, despite it facing almost certain defeat at a meeting in Melbourne next week.

Chairman Malcolm Broomhead told shareholders yesterday the board was still considering the implications of a move by logistics group Qube Holdings, Global Infrastructure Partners and Canada Pension Plan Investment Board to buy a 19.99 per cent stake in the company ahead of the vote.

The partners say they do not support the bid and will vote against the takeover, which requires the support of 75 per cent of shares voted. But Mr Broomhead said shareholders should vote for the bid, which was agreed with the Asciano board, “in the absence of a ­superior proposal.”

Brookfield, which is offering $9.15 in cash and its own shares for control of Asciano, may respond to the Qube proposal overnight when it delivers third-quarter earnings results to the New York and Toronto stock exchanges.

It wants to combine its West Australian rail network and Dalrymple Bay coal terminal in Queensland with the Pacific National transcontinental rail network and the Patrick container terminals and stevedoring operations in Brisbane, Sydney, Perth and Melbourne.

The ACCC said it would deliver a ruling in December 17, forcing Asciano to push back the expected completion date for the deal to January.

Full content: Sky News

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