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MFS Living and Leisure is not ruling out another takeover bid for Tourism Holdings, as the company's largest shareholder increases its stake to just under the takeover threshold.
Australian tourism investment company MFS this week fell short of the 90 per cent of shares it needed to effect a full takeover of Tourism Holdings, winning 83 per cent of the company at $2.80 a share. Because its bid was conditional on gaining 90 per cent, the offer lapsed.
Since then Tourism Holdings' share price has fallen, closing yesterday at $2.50 - still higher than the pre-bid price.
The fact the share price has not returned to pre-bid levels is seen as evidence of hopes in the market that MFS will make another bid.
However, MFS chief executive Marshall Vann said yesterday the company was still considering its options, as it owned 10 per cent of Tourism Holdings. MFS Living would "never say never" to making another bid, Vann said.
"I sort of look at that [speculation of a same price bid] and say 83 per cent said $2.80 was a good price, 17 per cent didn't decide at the end of the day to accept it. So has anything changed to make us feel we can get more than 83 per cent? I'm not sure."
Meanwhile, a group of US investment funds has edged its stake in Tourism Holdings closer to the threshold for a formal takeover.
Sterling Grace, representing the group, has inched its holding up by 0.05 per cent to 19.98 per cent.
Shareholders can not raise their stake in listed companies above 20 per cent without making a takeover bid, or without getting shareholder approval for an allotment of new securities or to buy existing shares.
