US suitor starts bidding war
A second bidder has emerged for Trade Me, with United States private equity firm Hellman & Friedman saying it might pay $6.45 a share for the firm.
Trade Me shares jumped 3 per cent to a new record high of $6.24 shortly after the announcement.
The offer – if confirmed – would trump another ‘‘preliminary, non-binding’’ cash offer for Trade Me made by British firm Apax Partners last month at $6.40 a share.
Both proposals would value the Kiwi online auction and listings website at a little over $2.5 billion, with Hellman & Friedman’s offer worth about $20m more than its rival’s.
Apax’s bid had represented about a 25 per cent, or $500m, premium to Trade Me’s sharemarket value before its bid was announced on November 21.
Trade Me’s board has allowed both private-equity firms to carry out due diligence on Trade Me, which is a key step before any final offers are finalised.
Trade Me had agreed to give Apax ‘‘exclusive’’ access to its books until December 12, but said that exclusivity was subject to a clause that allowed Trade Me to also engage with other parties if they made unsolicited proposals.
In a statement to the New Zealand stock exchange yesterday, Trade Me cautioned shareholders that it was possible neither offer would ultimately be made. –Stuff