By GEOFF SENESCALL
Merchant bank Morrison and Co put on a brave face yesterday when its planned $43 million sale to Macquarie Infrastructure Group was blown out of the water.
Its principal, Lloyd Morrison, said there was still "a lot of water to go under the bridge yet."
The Wellington-based bank specialises in
infrastructure assets.
On Tuesday, Hastings Funds Management made a $A38 million swoop to take a 19.9 per cent shareholding in Infratil Australia, which is managed by Morrison and Co.
The foray effectively blocks the purchase of Morrison and Co because Macquarie's offer was contingent on getting 90 per cent of Infratil Australia.
Mr Morrison said he had no idea what was going to happen next. "The only thing you can say is that it is good news for shareholders in Infratil Australia that they are getting a higher price.
"But anyone who thinks the game is won or lost at this point is jumping the gun."
Mr Morrison confirmed that Morrison and Co had a five-year contract to run Infratil Australia. It would have to be bought out of this if someone else wanted to run the asset.
After Macquarie's takeover offer was trumped, the Australian infrastructure manager said it was reviewing its options.
Dennis Eagar, associate director for Macquarie in Australia, said the Hastings bid at A95c, which tops the Macquarie offer of A90c, did not come out of the blue.
"We've known the possibility of this bid coming forward for some time. Our position is reasonably simple. We have access to significant deal flows, not just in Australia but overseas as well. We have certain benchmarks.
"At 90Ac, we are very happy with the bid price because it met those criteria. At 95Ac, it may be a different matter and that is what we know we have to look at.
"It may be that the other investment opportunities that are available to us are more attractive than increasing our offer."
With any bid now requiring Hastings to be bought out, Mr Eagar said: "I think it is fair to say that our style is not to have messy situations like that."
