IN BRIEF

TAKEOVER

By InvestSMART · 14 Jul 2012

By InvestSMART ·
14 Jul 2012

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TAKEOVER

Dulux rejects claim

DuluxGroup has rejected Alesco Corporation's claim that it does not have support from the takeover target's shareholders to secure its $188 million bid. Dulux yesterday extended the cut-off for Alesco shareholders to accept its offer for a second time, to August 3. It also waived several conditions attached to the offer. Alesco closed 2? lower at $1.97, up nearly 42 per cent this year. Dulux was 1? higher at $3.04.

BANKS

ANZ holds rates

ANZ has opted to keep its home loan rates on hold after the Reserve Bank decision not to cut the cash rate this month. ANZ said yesterday its standard variable interest home loan would remain at 6.8 per cent and its small business loans steady. ANZ chief executive Australia Philip Chronican said the decision was made despite the higher funding costs. He said as ANZ needed to remain competitive, it chose to keep rates on hold.

TAKEOVER

Hastings bid

The long-running takeover for pipeline owner and operator Hastings Diversified is moving into the final straight, with independent directors of the target recommending a friendly takeover from a party associated with the company. The recommendation comes before the final decision from the competition watchdog, the ACCC, of a competing bid from APA Group Holdings, which is due next week. Independent directors of Hastings Diversified yesterday accepted a $1.2 billion bid from Pipeline Partners Australia.

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Frequently Asked Questions about this Article…

What did DuluxGroup say about Alesco Corporation's claim that it lacks shareholder support for the $188 million takeover bid?

DuluxGroup rejected Alesco Corporation's claim that it did not have shareholder support for its $188 million bid. Dulux extended the cut-off date for Alesco shareholders to accept the offer (to August 3) and waived several conditions attached to the offer, signalling it remains committed to the takeover.

What does DuluxGroup’s extension of the acceptance cut-off to August 3 mean for Alesco shareholders?

The extension to August 3 gives Alesco shareholders extra time to decide whether to accept DuluxGroup’s offer. Dulux also waived several conditions on the offer, which can make the proposal simpler or more attractive for shareholders to accept before the new cut-off.

How have Alesco’s shares moved during the takeover discussions?

According to the article, Alesco closed about 2% lower at $1.97 on the day reported, but its share price is up nearly 42% year-to-date amid takeover activity.

What decision did ANZ make about its home loan and small business rates after the Reserve Bank's recent move?

ANZ opted to keep its standard variable home loan rate on hold at 6.8% and left its small business loan rates steady after the Reserve Bank decided not to cut the cash rate that month.

Why did ANZ choose to hold its home loan rates steady despite higher funding costs?

ANZ's chief executive for Australia, Philip Chronican, said the bank kept rates on hold despite higher funding costs because it needed to remain competitive. That was cited as the reason for maintaining the standard variable home loan rate at 6.8%.

What is the status of the Hastings Diversified takeover and the competing APA Group bid?

Independent directors of Hastings Diversified recommended a friendly takeover from a party associated with the company and accepted a $1.2 billion bid from Pipeline Partners Australia. This recommendation comes before a final decision from the competition watchdog, the ACCC, on a competing bid from APA Group Holdings, which is due next week.

How could the ACCC decision affect the Hastings Diversified takeover process?

The ACCC's upcoming decision on the competing APA Group Holdings bid could influence the final outcome of the Hastings takeover. The independent directors have recommended the Pipeline Partners Australia bid, but regulatory approval or objections from the ACCC to the competing bid could affect the competitive landscape and timing.

What practical steps should everyday investors consider while these takeover and bank rate developments are unfolding?

Everyday investors should monitor official announcements—such as DuluxGroup’s offer terms and any ACCC decisions on competing bids—and note key dates like the August 3 cut-off for Alesco shareholders. For borrowers, keep an eye on bank communications (ANZ kept its standard variable rate at 6.8%). Staying informed helps investors act before deadlines or regulatory updates.