Ann: Transurban Board Response to CPPIB, CP2 and , page-2

re: Ann: Transurban Board Response to CPPIB, ... Transurban rejects Canadian takeover bid
May 12, 2010 - 9:37AM

Toll road operator Transurban Group has rejected a takeover bid from its three largest shareholders, Canadian pension funds, but says its happy to explore ways of working with with them.

Transurban said on Wednesday the bid from the three funds, made late on Tuesday and containing two alternative offers, were uncertain and inadequate.

"The Board has great confidence in Transurban's outlook and prospects," the company said in a statement on Wednesday.

"Together with Transurban's management team and staff, it will continue to seek ways to maximise value for all Transurban security holders.

"Notwithstanding this rejection of the bidding group's proposals, Transurban remains willing to explore opportunities for constructive and harmonious relationships with the members of the bidding group into the future that will serve the interests of all Transurban security holders."

The bids came from Canada Pension Plan Investment Board (CPPIB), CP2 Limited (CP2) and Ontario Teachers Pension Plan Board (OTPP).

The bids would involve the acquisition of all the issued stapled securities of Transurban through a scheme of arrangement, initially at $5.57 per security, on condition Transurban dropped its current capital raising to fund its acquisition of the Lane Cove Tunnel in Sydney.

Transurban said the second bid had come in "early today", offering $5.42 per security but allowing the capital raising to proceed.

Transurban shares were placed in a trading halt on Monday, prior to its announcement of the capital Lane Cove Tunnel acquisition and capital raising.

Transurban securities traded last, before the trading halt, at $4.92.