Australia: Vocus is taking TPG to the ACC over share raid

Vocus Communciations is taking TPG Telecom to the competition watchdog after TPG built a blocking stake in its takeover target Amcom in a bid to scuttle its $1.2 billion merger.

TPG this morning confirmed it had made a late-night raid on the shares of Amcom increasing its stake in the telco to 18.6 per cent that it now plans to use to block the telco’s planned merger with Vocus.

TPG said it had no intention to make any counter proposal to the current deal. Vocus said it would refer TPG’s actions to the Australian Competition and Consumer Commission.

The board of Amcom (AAM) said that should TPG be successful in blocking its merger with Vocus, it would be to the detriment of all its shareholders Amcom.

“We are confused as to why TPG would want to disrupt a transaction which is demonstrably in the best interest of shareholders, particularly when they have no intention of providing shareholders with an alternative proposal,” Amcom chairman Tony Grist said.

Full content: Financial Review

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