What: The battle for control of port, logistics and rail operator Asciano Ltd (ASX: AIO) continues to heat up with suitor Brookfield Infrastructure Partners (BIP) responding to Qube Holdings Ltd's (ASX: QUB) unexpected move to acquire 20% in Asciano.
So What: Last week fellow port operator Qube acquired a 20% position in Asciano and stated that it would vote against the proposed acquisition by BIP and was interested in gaining control over certain strategic assets.
Qube's move, which came on top of concerns which have been aired by the Australian Competition and Consumer Commission (ACCC), certainly would have been a curve ball in BIP's plans.
To counter Qube's strategic stake, last night BIP countered Qube's move by taking its own strategic stake in Asciano with an announcement this morning that BIP has acquired 14.9% of the shares in Asciano and an economic interest in a further 4.3%.
Now What: With both Qube and BIP each effectively controlling 20% of Asciano it is difficult to know how the battle will play out. Both companies are likely to face attention from the ACCC and both companies look prepared to fight it out for the prize.
In early trade on Friday morning, Asciano's share price had dipped 1% to $8.28 which is below the implied $9.22 in value on offer from BIP. Meanwhile, Qube's share price was down around 2%.
The share price falls would seem to suggest that the market is betting that a higher bid will not be forthcoming for Asciano and nor is Qube set to benefit from acquiring strategic assets.
