Cal­tex Aus­tralia says of­fer not good enough

Mercury (Hobart) - - BUSINESS - STU­ART CONDIE

CAL­TEX Aus­tralia says the $8.6 bil­lion un­so­licited buy­out of­fer from Cana­dian con­ve­nience store op­er­a­tor Ali­men­ta­tion Couche-Tard un­der­val­ues the com­pany.

The fuel im­porter and re­tailer says it has re­leased non­pub­lic in­for­ma­tion to CoucheTard

so it has the op­por­tu­nity to come back with a bet­ter of­fer.

Cal­tex is ar­gu­ing the bid as it stands does not rep­re­sent com­pelling value for share­hold­ers con­sid­er­ing fac­tors in­clud­ing a prospec­tive in­crease in earn­ings, in­ter­na­tional growth, and the pro­posed spinoff of a com­pany that will own 250 of its petrol station prop­er­ties.

“Cal­tex has a well-de­vel­oped strat­egy, priv­i­leged as­sets, strong lead­er­ship and com­pelling growth op­por­tu­ni­ties that the board be­lieves will de­liver at­trac­tive value for its share­hold­ers over time,” chair Steven Gregg said in a state­ment yes­ter­day.

Last week’s of­fer of $34.50 a share in cash is the sec­ond Cal­tex has re­jected as in­ad­e­quate. It al­ready re­jected a bid on Oc­to­ber 11 at $32 a share.

Royal Bank of Canada an­a­lyst Irene Nat­tel said Cal­tex’s re­jec­tion was not en­tirely un­ex­pected, but that she be­lieved Couche-Tard would “re­main dis­ci­plined” on of­fer price.

Pic­ture: GLENN HAMP­SON

NAME OF THE GAME: Gold Coast Suns player Hugh Green­wood sports a Host­plus top while train­ing at Car­rara.

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