re: tabcorp confident re jupiters Reports: Jupiters to ask...

re: tabcorp confident re jupiters Reports: Jupiters to ask Tabcorp to up stakes
January 30, 2003
Jupiters Ltd (JUP) is expected to ask Tabcorp Holdings (TAH) to increase its proposed $6.50 a share takeover bid for the Australian hotel and casino operator to $7.00.

A source familiar with the talks said yesterday: "I am fairly certain that they (Tabcorp) have offered $6.50 so far and they may increase. If they get to $7.00, they should be pretty all right," Reuters reported.

The source told Reuters that Jupiters was likely to ask Tabcorp to raise its bid this week as the company considers a separate offer from UNiTAB (UTB).


In December last year, Jupiters and UNiTAB started merger talks aimed at creating Australia's second-largest gambling group with a market capitalisation of $1.6 billion. However, the talks sparked a counter-bid from Tabcorp.

Analysts have commented that Tabcorp should be able to afford to pay a higher price, but question whether the move will add value to Tabcorp in the short term.

Reuters reported earlier this month that a separate source said that Tabcorp's bid for Jupiters would involve a large share component as opposed to straight cash.

Mr Dick McIlwain, managing director of UNiTAB told Reuters that discussions between Jupiters and UNiTAB are advancing steadily.

"We are quite confident, but we also know that if Tabcorp come up with a better offer than the one they have now, our positions would be substantially weakened," he said.

At 1014 AEST Tabcorp Holdings was 1c lower at $10.38, Jupiters was 5c higher at $6.19, and UNiTAB was 1c stronger at $4.62