Another bidder is sniffing around iiNet and the $1.4 billion TPG takeover

iiNet marketing material.

Another bidder, the M2 Group, is reportedly looking at a rival bid to TPG’s $1.4 billion offer for internet service provider iiNet.

The all-share, no cash deal, according to the Australian Financial Review, would — at $1.5 billion — top TPG’s bid.

The report said iiNet was considering the bid over the weekend. M2 brands include iPrimus and Dodo.

M2 shares last traded at $11.52.

Some iiNet shareholders, including company founder Michael Malone, have been calling for a higher offer than TPG’s.

M2’s results for the half year included a 8% lift in revenue to $546.2 million and net profit up 25% to $38.5 million.

Under the TPG deal, iiNet shareholders get $8.60 per share, about one-third better than the average share price over the last month.

The TPG iiNet deal would create a major player in Australian telecommunications with a combined 1.7 million customers, revenue of $2.3 billion and staff of about 5,200.

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