Asciano rejects private equity takeover offer

<p>Rail and port operator Asciano rejected the unsolicited $2.89bn takeover offer from US private equity group TPG Capital and independent investment fund Global Infrastructure Partners (GIP) yesterday afternoon.</p> <p>Asciano said in a statement that it would not allow TPG Capital and Global Infrastructure Partners to perform due diligence.</p> <p>&#8220The directors have considered the proposal and believe it undervalues the business,&#8221 Asciano secretary Fiona Mead said.</p> <p>It was also opposed by the maritime Union of Australia, whose national secretary, Paddy Crumlin, said the TPG Capital bid, announced yesterday, was a "recipe for job cuts, union busting and asset stripping".</p> <p>TPG and Global Infrastructure Partners offered $4.40 a share but were overbid by the market yesterday when shares jumped 68 cents to close at $4.83 after coming out of a trading halt.</p> <p>The shares closed at $4.15 on Friday.</p> <p>TPG Capital is understood to be engaging in &#8220meaningful&#8221 discussions with Asciano.</p> <p>Asciano shares reached a record high of $11.43 last year when it was spun off from Toll Holdings.</p> <p>TPG Capital &#8211 formerly known as Texas Pacific Group &#8211 has more than US$50bn worth of assets under management.</p> <p>The private equity firm brought the Myer retail chain for $1.4bn from Coles Group in 2006.</p> <p>In November 2006, TPG Capital joined Macquarie Bank and Allco Finance, in the consortium Airline Partners Australia, with the intention of purchasing Qantas for $11.1bn.</p> <p>In May 2007, the bid failed.</p> <p>Mr Crumlin said the chance that one of the nation’s two stevedoring companies would owned by private equity was a national interest issue.</p> <p>"Just as with the attempt to takeover Qantas, we are looking at a corporate play to seize a company that is critical to the national interest,&#8221 Mr Crumlin said.</p> <p>"The MUA has been warning the ACCC for three years that our stevedoring companies risked becoming takeover targets.</p> <p>"With container trade projected to triple over the next 15 years, this takeover represents a significant risk to our national interest.</p> <p>"While the private equity bid is a matter for the shareholders, the environment on our waterfront is a legitimate concern for waterfront workers and it is time for the federal government to step up and create a viable future for stevedoring.&#8221</p> <br />