Teoh Boosts iiNet Offer To $1.57bn – Grab It, Says Board
But, shrewdly, Teoh’s latest offer gives iiNet shareholders the option to be paid in either shares or cash – and many are expected to plump for the cash, since it gives them greater certainty of immediate profit.
The M2 offer is a blend of cash and M2 shares. Its value was originally out at $1.6 billion, but a drop in the M2 share price has seen the value dip to $1.57 billion.
Not surprisingly, the iiNet board yesterday recommended shareholders take the TPG bid.
“The iiNet board has undertaken thorough and extensive analysis of both offers in conjunction with its advisers, and has determined the revised TPG offer to be more favourable to iiNet and iiNet shareholders than the M2 proposal,” iiNet said.
Some observers warn that the battle may not yet be over: M2 – driven, as is TPG, by the possibility of becoming Australia’s No 2 telecoms group – was yesterday weighing its options and may well yet up the ante.