TrustPower buyers sweeten the deal

By RICHARD BRADDELL utilities writer

Infratil and Alliant stepped up the pressure on TrustPower's small shareholders yesterday, offering to top up new on-market purchases to match the highest price they might pay before September 27, the date the deal ends.

Despite that, TrustPower's price is expected to drop from the existing $3.65 a share offer when the takeovers code takes effect next week and offers under present provisions expire.

Meanwhile, rival shareholder Australian Gas Light's revised $3.95 top offer for TrustPower shares was interpreted as setting the price at which it was willing to sell its 20.5 per cent stake.

In the latest round of jockeying before the Takeovers Code, AGL issued a restricted transfer notice lifting its price range for buying shares to between $3.50 and $3.95 a share, from the $3.30 to $3.60 notified in May.

And in amendments to their own restricted transfer notices, Infratil and Alliant also stepped up the maximum price they would pay for TrustPower shares, to $3.65 a share from $3.60, to match the price they have paying on-market under creep provisions.

So far, the duo have boosted their combined stake to 46.3 per cent through on-market purchases.

And although they will have an uphill struggle to push past the 48.3 per cent of shareholding at which they become subject to existing notice-and-pause provisions, the increased price range preserves their ability to do so if their on-market activity attracts enough acceptances.