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Rival to Canadian Brookfield's Oz port deal risks government intervention
THE Australian government may order the country's freight industry to restructure if port and rail giant Asciano Ltd is sold to Canada's Brookfield Asset Management, according to chairman of Australian logistics business Qube Holdings, Chris Corrigan, a rival bidder.
Qube Holdings is trying to give Asciano's shareholders a reason to warm to its slightly higher indicative offer, which came after the target company had recommended Brookfield's US$6.5 billion buyout, Reuters reports.
Mr Corrigan's warning of government intervention appears to be a bid to scare Asciano shareholders into avoiding extra costs and supporting his firm's offer, made in a consortium with a Canadian pension fund and a US infrastructure fund. Mr Corrigan ran Asciano's port unit for 16 years until it was sold in 2006.
"You do require the container terminal operators to service rail in an intelligent fashion. They'll do that either at their own volition or they'll be told to do it by government," Mr Corrigan told reporters in his first public remarks on the takeover offer. "It's more of a 'steady-as-she-goes' type of proposal from Brookfield."
Qube has bought a one-fifth stake in Asciano, prompting Brookfield to buy a similar stake, which means each firm could deny the other full ownership.
The Australian Competition Consumer Commission has raised antitrust concerns about Brookfield buying Asciano, and will give its final ruling on December 17.
Qube Holdings is trying to give Asciano's shareholders a reason to warm to its slightly higher indicative offer, which came after the target company had recommended Brookfield's US$6.5 billion buyout, Reuters reports.
Mr Corrigan's warning of government intervention appears to be a bid to scare Asciano shareholders into avoiding extra costs and supporting his firm's offer, made in a consortium with a Canadian pension fund and a US infrastructure fund. Mr Corrigan ran Asciano's port unit for 16 years until it was sold in 2006.
"You do require the container terminal operators to service rail in an intelligent fashion. They'll do that either at their own volition or they'll be told to do it by government," Mr Corrigan told reporters in his first public remarks on the takeover offer. "It's more of a 'steady-as-she-goes' type of proposal from Brookfield."
Qube has bought a one-fifth stake in Asciano, prompting Brookfield to buy a similar stake, which means each firm could deny the other full ownership.
The Australian Competition Consumer Commission has raised antitrust concerns about Brookfield buying Asciano, and will give its final ruling on December 17.
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