Wesfarmers Wants Financials Before Making Higher Priceline Bid
Wesfarmers is apparently after price-sensitive information from Priceline owner Australian Pharmaceutical Industries before it lifts its bid to buy out the company.
Last month, API rejected a $687m buyout proposal, saying it “undervalues the company.”
Wesfarmers are adamant that it will need to be privy to certain financials in order to make a higher offer.
API downgraded its profit forecasts on the day Wesfarmers made its bid, claiming that $1m of earnings would be lost for every week the Sydney lockdown continues past the end of July. In this climate, API called Wesfarmers’ low bid “opportunistic.”
Wesfarmers bid equals $1.38 a share. API’s shares closed at $1.44.
Shareholders hold out hope for a higher offer.