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iiNet Founder Malone Slammed

iiNet Founder Malone Slammed

Soul Pattinson is TPG Telecom’s second-biggest shareholder. It has hit out at criticism of TPG’s takeover bid for iiNet, saying company founder Malone had been prepared to sell most of his shares for a lot less than the current takeover bid.

“I didn’t sell the shares, he sold them,” said Millner, who holds some 26.9 percent of TPG. “Now he’s coming back to us, saying we are not paying enough. He obviously thought $5-$6 was plenty when he sold.”

Malone sold down below five percent in two big trades, including one in August 2013 for $5.70 a share.

TPG had a 6.25 percent holding in iiNet before launching its takeover bid: the ensuing rally in both companies’ share prices has suggested to some observers that the TPG bid was cheap.

“The assumptions are that it is going to be a great deal for TPG,” Millner said.