Tabcorp Holdings Ltd is Australia’s largest gambling operator. It has submitted a bid to purchase Tatts Group Ltd, which runs profitable lotteries. A second bid to purchase Tatts was submitted by Pacific Consortium, but the Tatts board rejected it, saying that the Tabcorp offer was better. Approval for the Tabcorp offer is now in the hands of the Australian Competition Tribunal. If the purchase is denied by the tribunal, Pacific Consortium may consider an new bid, and may be able to offer a lower purchase price without the competition from Tabcorp.
- Tatts offers fell as much as 4.8 percent to A$4.23 after Pacific Consortium said it would stop chip away at its offer.
- Tatts is a prized resource because of its lucrative and solid lotteries pay and its syndication licenses.
- Australia’s opposition guard dog is because of run on the Tabcorp offer in mid-June, unless the timetable is amplified.
“Tatts on Friday said it had determined the Pacific Consortium bid was not superior to the Tabcorp offer and therefore it could not offer due diligence access.”