Why didn't Equifax bid for Veda in 2013?

Friday’s takeover bid for Veda Group (ASX: VED) by US credit reporting giant Equifax (NYSE: EFX) seems surprising. The bid – at $2.70 per share – is more than double the company’s 2013 initial public offering (IPO) price of $1.25.Presumably Pacific Equity Partners (PEP), Veda’s former private equity owner, shopped the company around in 2013 before deciding to proceed down the IPO route. Why didn’t Equifax buy Veda then?Here’s a theory.PEP retained 64% of Veda after listing so, even though it obtained only $1.25 per share in the IPO, its average sale price has been more like $1.85. PEP sold...

Friday’s takeover bid for Veda Group (ASX: VED) by US credit reporting giant Equifax (NYSE: EFX) seems surprising. The bid – at $2.70 per share – is more than double the company’s 2013 initial public offering (IPO) price of $1.25.

Presumably Pacific Equity Partners (PEP), Veda’s former private equity owner, shopped the company around in 2013 before deciding to proceed down the IPO route. Why didn’t Equifax buy Veda then?

Here’s a theory.

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