IOOF bid for Trust puts heat on Perpetual
IOOF chief executive Chris Kelaher. Photo: Josh Robenstone
Small-cap financial services company Trust Co has thrown its weight behind a bid lobbed by IOOF yesterday, leaving rival suitor Perpetual three business days to sweeten its bid.
Trust Co said this morning that its board had determined that the IOOF proposal is likely to be a superior proposal ... and has accordingly provided Perpetual with the opportunity to match or better tha IOOF proposal.
Perpetual now has until close of business on Monday to decide on whether to up its bid.
In a statement, IOOF said it agreed to the Trust boards request to make drafting changes to the scheme implementation agreement, and the deadline for acceptance of the revised IOOF proposal would be 9 September 2013. Advertisement
There is now a three-way battle for Trust Co, starting by a scrip-only bid by the Melbourne-based Equity Trustees in February.
IOOF has offered guaranteed cash of $6.03 for each Trust Co share, plus a 22¢ dividend, or 0.74 IOOF shares for each Trust Co share. The guaranteed cash consideration is capped at $100 million.
Financial services giant Perpetual will hear the Australian Competition and Consumer Commissions verdict on its bid by September 19.
Equity Trustees chief executive Robin Burns told BusinessDay on Tuesday the company was keeping open the option of a cash component of its bid.
Shares in Trust Co were up 2.3 per cent, or 15 cents, to $6.69 this morning. This rise takes its year to date increase to 52.7 per cent.