[AusNOG] News: M2 makes competing bid for iiNet

[Skeeve Stevens]

Surprised that this is not in discussion.....

Here's the news.

=======
Subject: M2 lobs all-scrip $1.5b-plus bid for iiNet

Sources said iiNet's board and advisers were considering M2's bid over the
weekend and were seeking to determine whether it was better than a $1.4
billion all-cash takeover it signed with TPG Telecom in March.

It's understood M2's bid put a significantly higher valuation on iiNet, but
its scrip nature means iiNet's board needs to determine the value of M2
shares before deciding whether to recommend it to shareholders.

iiNet and M2 are known to have spoken on numerous occasions about a merger
in recent years, although the two companies had not been able to agree a
deal that would see them create Australia's second largest fixed broadband
provider behind Telstra.

M2's bid comes soon after iiNet investors – including its largest
shareholder BT Investment Management and company founder Michael Malone –
called on their board to push TPG for a higher offer or test the market for
a better bid.

A spokeswoman for M2 declined to comment on Sunday. iiNet's spokesman did
not return calls seeking comment prior to deadline.

iiNet agreed an $8.60 a share takeover with TPG in March after only a short
period of due diligence. Under the agreement signed by iiNet chairman
Michael Smith and company secretary Ben Jenkins and TPG's David Teoh and
Stephen Banfield on March 13, iiNet's board must notify TPG if it receives
any serious competing offers or has talks with any parties that could lead
to a firm bid.

TPG would have then three-days to make a counter bid before iiNet decided
whether to break the proposed scheme of arrangement. It's understood the
three-day period has not started although TPG is aware of other interest.

M2's entry into the race for iiNet is likely to surprise some analysts and
investors who thought the acquisitive Melbourne-based company had ruled
itself out by buying New Zealand's Call Plus Group for $250 million a
fortnight ago.

However, investors will understand the logic. Buying iiNet would help M2,
which owns the Dodo and iPrimus brands and has a $2 billion market
capitalisation, create the country's second largest fixed broadband
provider.

Credit Suisse analysts have previously said M2 stood out as the party most
likely to create a bidding war for iiNet, given it also runs a low cost
strategy and could generate meaningful synergies through the acquisition.

The analysts said the $14 million break free and no shop clause in TPG's
agreed bid should not stop a rival offer.

Both iiNet and M2 shareholders will be keen to see the level of synergies
M2 assumes in its bid. TPG declined to detail the exact amount of cost
synergies it expects from the iiNet deal, although analysts have estimated
them to be worth about $30 million next year and up to $60 million in
following years.
=======


...Skeeve


--

Skeeve Stevens - The ISP Guy - Internet Provider SME

Email: skeeve at theispguy.com ; Cell: +61(0)414 753 383
Skype: skeeve; Blog: TheISPGuy.com
<http://t.strk03.email/e1t/c/5/f18dQhb0S7lC8dDMPbW2n0x6l2B9nMJW7t5XX43LyyXnW4X9_h03N1zK2W653gwx56dStDf4-GSnR02?t=http%3A%2F%2Ftheispguy.com%2F&si=4640016326721536&pi=a60425d4-6a17-4c4e-9ccb-572db33b276c>
;
Facebook: TheISPGuy
<http://t.strk03.email/e1t/c/5/f18dQhb0S7lC8dDMPbW2n0x6l2B9nMJW7t5XX43LyyXnW4X9_h03N1zK2W653gwx56dStDf4-GSnR02?t=https%3A%2F%2Fwww.facebook.com%2Ftheispguy&si=4640016326721536&pi=a60425d4-6a17-4c4e-9ccb-572db33b276c>

Linkedin: /in/skeeve
<http://t.strk03.email/e1t/c/5/f18dQhb0S7lC8dDMPbW2n0x6l2B9nMJW7t5XX43LyyXnW4X9_h03N1zK2W653gwx56dStDf4-GSnR02?t=http%3A%2F%2Fwww.linkedin.com%2Fin%2Fskeeve&si=4640016326721536&pi=a60425d4-6a17-4c4e-9ccb-572db33b276c>
 ; Expert360: Profile
<http://t.strk03.email/e1t/c/5/f18dQhb0S7lC8dDMPbW2n0x6l2B9nMJW7t5XX43LyyXnW4X9_h03N1zK2W653gwx56dStDf4-GSnR02?t=https%3A%2F%2Fexpert360.com%2Fprofile%2Fd54a9&si=4640016326721536&pi=a60425d4-6a17-4c4e-9ccb-572db33b276c>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.ausnog.net/pipermail/ausnog/attachments/20150427/58758ccb/attachment.html>