The online publication reported that the consortium is planning to up the cash part of its A$15 a share bid from 56% to about 90%. Bloomberg has reported that, at present, Babcock & Brown and Singapore Power’s offer is for A$8.50 a share in cash, with the remainder coming through shares in Babcock funds and pipeline owner APA Group.
Bloomberg commented that Babcock & Brown and Singapore Power’s improved offer will further exacerbate their ongoing struggle with Macquarie Bank to acquire Alinta. The publication added that Macquarie Bank may also be planning to increase its bid, after Alinta’s board rejected its first offer.
Bloomberg cited Roy Gilmore, an analyst at Goldman Sachs JBWere, as saying: This move by Babcock & Brown highlights the ongoing public battle between Babcock and Macquarie to acquire Alinta. He is also reported to have called the changes a small positive for Alinta shareholders.
Bloomberg reported that, according to a presentation to be made to investors, the amount of cash that can be offered to shareholders is limited and may therefore be reduced depending on demand. In addition, Bloomberg pointed out that, if Alinta shareholders do not make a decision regarding the revised bid, the existing offer will remain.
