around the protracted bidding process, then they were misguided.
funds, the decision to reject an all-cash option of $15.80 a share Babcock will ensure the outcome remains contentious.
teleconference, which attempted to explain the board's decision to choose Babcock over Macquarie, that some of Alinta's institutional the Babcock offer and talk down the Macquarie alternative.
Perhaps that's not surprising, given the tension between the adviser wanted to join former Alinta chief executive Bob Browning, buyout.
that the bank might succeed.
Alinta needed Macquarie in the auction to maximise the price.
That decision has been vindicated. Before the management buyout was revealed, Alinta shares had traded around $10.
80. After two rounds of bidding, both bidders had put packages worth close to $16 value for its shareholders. The final Babcock offer is itself worth, thanks to Macquarie, about $1 a share - or close to $500 ago.
weekend were similar in value but quite different in make-up. The winning Babcock bid was a mixture of cash (56 per cent, or $4.5 investment vehicles (44 per cent, or $3.
6 billion). Within those "caps" on the amount of cash and scrip available, Alinta's security received. An element added to the previous bid was a Babcock $1.
60.
Under Macquarie's offer, shareholders could elect to take $15.80 a share of cash for as many shares as they wanted, or receive scrip in a new vehicle, Energy Infrastructure Australia, housing most of their existing assets, or a mixture of cash and scrip valued by capital.
Alinta assessed the "blended" value of that option at $15.95 a share, although Macquarie claims that on the most likely mix of acceptances the blended value would be closer to $16.50, been questioned by investors, given it used one-day prices for record prices, largely because the Alinta board had endorsed the Babcock bid - to arrive at the $16.
06 valuation. Had they used the volume-weighted average price for the past month, the offer would have been worth about $15.82.
Indeed, had they used the anointed Babcock in March, the package of securities and cash would have been worth only about $15.50. The recommendation has "paid" for half the increase in Babcock's offer.
Macquarie had an all-cash option on the table and Babcock didn't. A secondary issue was that the scrip being offered by Babcock, while in a variety of vehicles, had a trading history and therefore was reasonably easy to value, while Macquarie's scrip was in a vehicle that doesn't yet exist, albeit one whose value was supported by the cash bid.
argue Babcock's bid had greater completion certainty.
Alinta didn't point out, however, that if the sharemarket fell more than 10 per cent or rates rose by more than 1 percentage point, Babcock securities would dive. Nor, as one unhappy hedge fund investor pointed out at the teleconference, had it factored in the potential vehicles to dump the securities they receive through the bid, reversing the recent price spikes.
board and its recommendation come under pressure.
For the moment, tried to emulate.
He's a bona fide Hollywood star, and Steven Spielberg and Brad Pitt are among his fans, but what Eric Bana treasures most is his life as a suburban dad.
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