Two good articles in The Australian today re the bidding war for...

Two good articles in The Australian today re the bidding war for Tilt and possibly Infratil as a whole.

The country’s largest superannuation fund, AustralianSuper, could be about to face competition over its $NZ5.4 billion ($5.1bn) bid for Infratil with talk in the market another fund is preparing a rival offer.One suggestion in the market is that it is IFM Investors (of which AustralianSuper is also an investor and shareholder) that is plotting the approach for the New Zealand-based infrastructure company that is listed in Australia.The suggestion comes after the board of Infratil – one of New Zealand’s most valuable infrastructure funds – rejected the AustralianSuper offer lobbed late last year.READ NEXTRECOVERYBusiness SA hoping for ‘remarkable turnaround’CAMERON ENGLANDOne possibility is that IFM could be working with the New Zealand-based banking firm Jarden, which also has an Australian presence, along with a US-based bank.Market observers questioned whether Citi could be behind the move, given its head of Australian and New Zealand infrastructure, Nick Forster, has recently moved across the Tasman, but sources say that the bank already has another role on the fringes that may create a conflict of interest.Another possibility put forward could be Bank of America.Infratil has hired Goldman Sachs as its defence adviser after receiving the $NZ7.43-a-share approach late last year from AustralianSuper, which is working with Morgan Stanley.Infratil’s shares closed up 4.9c on Friday to $6.86, with its market value at $4.93bn.AustralianSuper’s offer was disclosed to the market on December 9 by Infratil and was at a 22.2 per cent premium to its December 8 closing price.Infratil’s board said it materially undervalued its unique portfolio of assets.New & improved business newsletter. Get the edge with AM and PM briefings, plus breaking news alerts in your inbox.Sign upExpectations are that its manager Morrison & Co, which collects more than NZ$100m in fees annually from managing the assets, would likely be against any acquisition.AustralianSuper may need to launch a higher offer by way of a takeover for the business where it buys shares on market to gain control rather than through a scheme of arrangement, which relies on a shareholder vote.The portfolio is attractive to infrastructure investors at a time limited opportunities exist to secure control of a valuable portfolio of assets in the region amid a low interest rate environment.Infratil, which is also listed in Australia, owns Vodafone New Zealand and last year acquired an interest in Australian healthcare business Qscan from private equity firm Quadrant in a deal valuing the business at $730m.Infratil’s other assets include stakes in Canberra Data Centres, RetireAustralia and Wellington Airport.It also owns a 50.76 per cent stake in New Zealand power company Trustpower, a 65.6 per cent interest in renewable energy business Tilt Renewables, which is listed in Australia and New Zealand, Galileo Green Energy and renewable energy business Longroad Energy Partners.Since AustralianSuper made its approach, IFM has been considered a logical challenger, given both have large pools of funds that need to find investment opportunities providing low risk and stable returns.But market analysts say that should IFM go up against AustralianSuper, it would be considered somewhat of an aggressive play, given that the pair have worked together on acquisitions in the past.AustralianSuper and IFM purchased a 50.4 per cent interest in NSW electricity network Ausgrid with IFM for $16.189bn in 2016.A join bid by both groups is considered logical.Should IFM embark on a deal with AustralianSuper, it would probably take a long time to work through, given the complexity of the portfolio.The Melbourne-based IFM manages more than $140bn worth of assets and is owned by 27 major Australian pension funds - including Australian Super. It counts David Neal as its chief executive.Meanwhile, the $200bn Australian Super has involved itself in a number of takeover attempts to buy Australian listed companies in the past two years, including Healthscope and Navitas.Earlier, parties had suggested that the Infratil bid was fully priced.