The Uniti Group Ltd (ASX: UWL) share price is outperforming the S&P/ASX 200 Index (ASX: XJO) this morning as new takeover rumours swirl.
This time it could be Macquarie Group Ltd (ASX: MQG) planning a move on the fibre network owner, reported The Australian.
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Uniti share price jumps as rumoured new suitor appears
Mind you, it's only speculation, and Uniti remains tight-lipped on any corporate interest. But this has not stopped the Uniti share price from advancing 1.42% to $4.28 at the time of writing.
In contrast, the ASX 200 has gained 0.44%, while the Telstra Corporation Ltd (ASX: TLS) share price has added 0.3%.
Media speculation forced Uniti to admit last week that it had entered into exclusive discussions with HRL Morrison & Co. The Kiwi fund manager made a non-binding and conditional takeover cash offer valuing Uniti at $4.50 a share.
More than a love triangle
The Australian alleges that Macquarie Asset Management has given Uniti a higher offer. While the exact amount is unknown, the article suggests at least one other suitor is looking to crash the party.
This means we would see a takeover tussle for Uniti as the business owns assets that will be of interest to several parties.
Morrison & Co's bid is subject to a number of conditions and includes a break fee. This complicates the picture, but there may be a fiduciary exemption.
Conditional offer for Uniti share price
The exclusivity arrangements may not apply if there is "a bona fide, actual, proposed or potential competing proposal" that would "reasonably be expected to lead to a superior proposal," reported The Australian.
Other conditions attached to Morrison & Co's offer are satisfactory completion of the bidder's confirmatory due diligence; unanimous recommendation of the transaction from the Uniti Board; entry into a mutually acceptable scheme implementation agreement containing customary exclusivity terms, conditions precedent (including but not limited to FIRB), prescribed occurrences, and receipt by Morrison & Co of its required internal approvals.
Uniti outperforming its peers
Uniti builds and operates fibre broadband networks in residential areas. The company has also been in the spotlight as its executive director Vaughan Bowen was charged with two counts of insider trading.
The Uniti share price has surged nearly 80% over the past year. That's well ahead of its peers. The Telstra share price gained a relatively modest 17%. The TPG Telecom Ltd (ASX: TPG) share price slumped by an equal amount in the last 12 months.
