ACCC Raises Concerns Over Unitab Bid
Australian Competition and Consumer Commission (ACCC) is wary of a potential reduction in competition in the wagering industry once gaming giant Tabcorp gets Unitab for AU$1.9 billion (US$1.5 billion).
''There are potentially significant competition concerns regarding the proposed acquisition,'' Graeme Samuel, ACCC chairman said. He added the ACCC would first solicit market opinion before making a final decision on the bid.
''We want to get a reaction from the market on that,'' Graeme said, noting the final decision would be made on Aug. 16.
Tabcorp's offer was valued at AU$14.25 for each Unitab share, while rival Tattersall's offer was at AU$1.6 billion. Unitab's management has earlier backed Tattersall's.
Meanwhile, Tattersall's Chief Executive Officer Duncan Fischer has told reporters that his firm was not keen on extending the bid after it expires on Aug. 21, hinting Tattersall's couldn't lose more time in waiting.
For his part, Unitab Chief Executive Officer Dick McIlwain has said that the Tattersall's bid is the lone bid that Unitab can support right now since it has ACCC approval.
Unitab shareholders are due to vote on Tattersall's bid on Aug. 21, just five days after the ACCC's rescheduled decision on Tabcorp's takeover offer.
ACCC said it was concerned about a lessening of competition in almost all of Tabcorp's businesses, covering wagering, gaming, and broadcasting. Tabcorp has already provided the ACCC with documents responding to the concerns.
For his part, Tabcorp spokesman Bruce Tobin said his firm was prepared to answer the concerns and ''there is nothing in the statement of issues (by the ACC)'' that is not expected.
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