The Globe and Mail reports in its Tuesday edition that investors are digging in their heels on both sides of the $9-billion (Australian) tug-of-war for port and rail company Asciano Ltd. The Globe's Jacqueline Nelson writes that on Monday, an Australian consortium's offer became the new preference of the Asciano board, putting previous board favourite Brookfield Infrastructure Partners LP on unsteady ground.
Last summer, Asciano seemed to be solidly in the corner of Brookfield, which said it would acquire the company in a deal valued at $8.9-billion, or $9.15 per share. Brookfield's goal is to use the business as a foundation for global rail and port platforms.
Asciano directors recommended shareholders support the deal. However, Australian infrastructure and logistics company Qube Holdings Ltd. was not going to let the company go without a fight, and it formed its own consortium that includes Canada's CPPIB to oppose the deal. On Monday, Asciano's board said Qube had made a "superior proposal" for the business. Qube offered one of its shares and $7.04 cash for each Asciano share, which would bring the total value per share in the deal to $9.24. Brookfield has one week to match or exceed that offer.
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