Baycorp ponders Allco’s takeover bid
(26 July 2005 – Australia) The directors of Baycorp Advantage have told shareholders not to take any action regarding Allco Equity Fund’s unsolicited A$470 million takeover bid for the company.
Investment fund Allco announced on Monday that its wholly owned subsidiary AEP Financial Services Holdings had taken a 17 percent stake in Baycorp for A$136 million and had made an offer for 50 percent of the Baycorp shares it didn’t own.
Baycorp’s directors said they were reviewing the bid and that shareholders were advised to "take no action" in relation to AEP’s offer.
Allco’s takeover, if successful, will be funded by Credit Suisse First Boston.
Allco chairman David Coe said a majority shareholding in Baycorp would allow the company to drive the strategy and direction of the business more rapidly and ensure board and management accountability on behalf of shareholders.
He said the merger between Baycorp and Data Advantage in 2001 had never realised its potential.
"We are confident that with AEP as the majority shareholder, the combination of an invigorated business and enhanced capital management can deliver significant value for all shareholders," Coe said.
Baycorp’s directors said they were reviewing the bid and that shareholders were advised to "take no action" in relation to AEP’s offer.
Allco’s takeover, if successful, will be funded by Credit Suisse First Boston.
Allco chairman David Coe said a majority shareholding in Baycorp would allow the company to drive the strategy and direction of the business more rapidly and ensure board and management accountability on behalf of shareholders.
He said the merger between Baycorp and Data Advantage in 2001 had never realised its potential.
"We are confident that with AEP as the majority shareholder, the combination of an invigorated business and enhanced capital management can deliver significant value for all shareholders," Coe said.
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