Regulator clears Tattersall's bid

MELBOURNE - Australia's competition regulator cleared the way yesterday for Tattersall's, Australia's top lottery operator, to go ahead with an agreed A$1.7 billion ($2 billion) bid for second-ranked betting group Unitab.

The Australian Competition and Consumer Commission found no reason to intervene because there was no overlap in the groups' geographies and the two companies were involved in different parts of the gaming industry, commissioner Stephen King said.

Tattersall's is offering 4.33 of its shares for each Unitab share.

However, at yesterday's close that valued Unitab shares at just A$12.90 each, well below Unitab's close of A$14.68, indicating that investors expect a higher bid to emerge.

Unitab said it would release documents explaining the bid next week and send them to shareholders in the week of June 5.

"As of this date, neither Unitab nor Tattersall's are aware of any outstanding due diligence items or regulatory issues that will hinder the proposed merger of equals from being implemented following approval of the transaction by Unitab shareholders," the companies said in a statement.

Top gaming group Tabcorp is seen as the most likely rival bidder.

Sources have said that if Tabcorp was considering putting in a counterbid, it would wait to see the explanatory memorandum first.

A Tabcorp bid for Unitab would attract closer scrutiny from the competition regulator.

"If Tabcorp was in there, that would have made things a bit different," commissioner King said.

- REUTERS