Takeover tactics of PEP have tongues wagging

For several years now, wherever there has been takeover talk in Australasia there have been whispers of Pacific Equity Partners.

The multibillion-dollar investment company has a reputation as the most aggressive and asset-hungry in the region.

Over the last three years, the Sydney-based firm has completed transactions valued at more than A$2 billion ($2.3 billion).

In New Zealand, it owns Whitcoulls and has paid almost $800 million in the past 12 months to take control of food companies Tegel and Griffin's.

In Australia, it owns a diverse portfolio - from an appliance retailers and food groups to a share registry and security equipment company.

PEP invests in mature assets and, these days at least, does not look at anything worth less than $150 million. While it is not considered a short-term investor or one that strips assets for a quick profit, it certainly has an eye to exiting for a substantial profit.

New Zealand companies it has successfully had its way with include Frucor - which it bought from the Apple and Pear Marketing Board in 1998 for $50 million and floated for $265 million - and plastics company Vertex which it paid $12.8 million for and floated at a return of about $60 million.