By GEOFF SENESCALL
A raid on Infratil Australia has thrown a $43 million sale of its management firm Morrison and Co into doubt.
The Wellington-based merchant bank was to be sold to Macquarie Infrastructure Group as part of a back-to-back deal including the purchase of Infratil Australia for $A304 million.
But in a lightning swoop last night Hastings Funds Management spent $A38 million to buy 40 million shares (at 95Ac), taking its holding in Infratil to 19.9 per cent, effectively blocking any move by Macquarie.
Macquarie's offer to buy Morrison had been contingent on getting 90 per cent of Infratil Australia.
Morrison, named after its principal Lloyd Morrison, was behind the float of Infratil Australia in 1995. The Australian infrastructure investor was modelled on its sister company in New Zealand called Infratil NZ.
The action by the Australian-based Hastings comes after its original two-for-five scrip offering, treated as hostile by Infratil Australia, was topped by a cash bid from Macquarie at 90Ac. This offer by Macquarie had the blessing of Infratil.
Late last night, Hastings, which is bidding through its Australian Infrastructure Fund, put out a statement indicating they were looking for 90 per cent.
"Given the recent decision of the independent directors of the board of Infratil to recommend acceptance of the 90Ac cash bid, we expect that once they have considered the revised 95Ac AIF bid, it will gain their full support," said AIF chairman Barry Capp.
AIF's offer is open until July 7. AIF will underwrite 29 per cent of the cash bid for Infratil with its sister fund, the Utilities Trust of Australia, underwriting the balance.
If successful, AIF would review Infratil's assets with a view to AIF adding holdings in Perth Airport, Northern Territory Airport and Port of Portland to its portfolio.
Infratil Australia's shares closed up 7Ac at 94Ac.
Infratil raid stalls $43m bank sale
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