Tabcorp emerges as preferred Tatts suitor
By Vanessa Cavasinni, editor Australian Hotelier
This morning the Tatts board announced that they would not provide the Pacific Consortium the opportunity for due diligence.
After review, the Tatts board has decided that the Pacific Consortium offer of $4.21 per share did not best the Tabcorp merger scheme, and will no longer engage with Pacific Consortium.
“Accordingly Tatts’ Board continues to believe that the Proposed Tabcorp Merger is in the best interests of Tatts shareholders and unanimously recommends the Proposed Tabcorp Merger in the absence of a Superior Proposal and subject to an independent expert concluding that the Proposed Tabcorp Merger is in the best interest in Tatts’ shareholders.”
While the merger between Tatts and Tabcorp is still subject to approval by the Australian Competition and Consumer Commission (ACCC), the emergence of Tabcorp as the preferred bidder is good news for many, including the AHA, who came out in support of the merger yesterday.
“In comparing Tabcorp with the Macquarie-led Pacific Consortium, it is clear that hoteliers and their customers will benefit more with Tabcorp running wagering,” stated Stephen Ferguson, CEO.
“The Pacific Consortium has no expertise we are aware of regarding wagering and we are also very concerned that their main play is for Tatts lotteries business, and not the wagering business.”
TheShout will continue to cover developments in this story as they unfold.