Asciano Says Brambles Bid Not On Cards
Sydney Morning Herald
Saturday November 10, 2007
THE transport infrastructure company Asciano said yesterday it had no current intention of making a takeover offer for the much larger global pallets and containers company Brambles.
But Asciano, which has been savaged by the sharemarket since it listed earlier this year, said would retain its stake in Brambles."Asciano notes recent market speculation regarding its intentions in relation to Brambles," the company told the ASX. "Asciano confirms that it has no current intention of making a takeover bid for Brambles. "Asciano also advises that it presently intends to retain its 4.09 per cent shareholding in Brambles." Asciano and the transport and logistics group Toll Holdings, which owns less than 1 per cent of Brambles, have been touted as predators for Brambles since establishing their holdings. The Shaw Stockbroking analyst Brent Mitchell said the announcement was not surprising given the volatility in global sharemarkets and the state of Asciano's share price. He said if Asciano wanted to make an offer for Brambles using equity or an equity issue, "it would be difficult to make it stack up", as Asciano's share price had sunk. "Whether they really want to launch a takeover, it's a bit unclear," he said."Brambles is a global business two or three times their size. A takeover bid would probably be foolhardy, even with the backing of Macquarie Bank." Asciano's shares closed 59c higher at $8.90 yesterday. Brambles was down 13c at $12.30.
© 2007 Sydney Morning Herald
