Allco increases Baycorp takeover bid

SYDNEY - Allco Equity Partners Ltd (AEP) has sweetened its takeover bid for credit information firm Baycorp Advantage Ltd and extended the offer by 14 days.

The listed investment firm boosted its original cash offer to A$3.52 ($3.86) from A$3.50 per share and will also waive rights to the eight cent dividend Baycorp declared on August 19.

AEP is also dangling a further seven cent payout if sufficient acceptances are received by September 22, pushing the original A$3.50 proportional bid to A$3.67 in total.

AEP first launched its takeover bid -- via subsidiary AEP Financial Services Holdings Pty Ltd -- in late July, and will declare its bid unconditional if it wins a 35 per cent stake alongside 50 per cent of voting rights.

Major shareholder Lazard Asset Management has also finalised its agreement to sell a 10 per cent stake to AEP, making AEP's 17 per cent stake in the credit firm unconditional.

AEP managing director Pater Yates said the revised offer was substantially above Baycorp's average trading price before the bid was announced.

"There has been more than enough time for Baycorp to solicit a credible counter proposal and they have been unable to do so," he said in a statement.

"We urge all shareholders to accept the offer without delay - it is the only one on the table."

Baycorp Advantage Chairman Glenn Barnes said tonight that shareholders should take no action on the revised takeover offer.

"Baycorp Advantage's independent directors will carefully consider this revised offer and provide advice to shareholders next week," he said.

Baycorp shares closed three cents higher yesterday at A$3.65 while Allco shares were steady at A$1.36.

- AAP