Asciano is going to snub Qube in the battle for control with Brookfield

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Asciano is going ahead with the $8.9 billion takeover by Canada’s Brookfield Infrastructure despite Qube gaining a key 19.9% holding in the logistics group.

“The Asciano Board continues to unanimously recommend that you vote in favour of the Brookfield Scheme in the absence of a superior proposal,” the company said in a letter to shareholders.

Qube, with the support of Global Infrastructure Partners and Canada Pension Plan Investment Board, acquired a strategic holding in Asciano at a cost of about $1.7 billion.

Chris Corrigan’s Qube is after what it calls Asciano’s first-class Australian assets, Patrick Containers Terminals in Melbourne, Sydney, Brisbane and Fremantle, and a few other bits and pieces of the logistics company.

Corrigan is the current chair of Qube and was the managing director of the Patrick Corporation until it was taken over in 2006.

Qube says it has no present interest in acquiring any of Asciano’s businesses beyond the Patrick Businesses.

However, Asciano said today: “Qube has indicated that it and its co-investors do not support the current Brookfield Scheme and do not intend to vote in favour of it.”

Asciano is going ahead with the Brookfield takeover timetable with shareholder meeting set down for next week.

“The Asciano board is considering the implications of the Qube acquisition,” the company said.

Asiacano shares were up 1.l1% to $8.19. Qube was up 1.3% to $2.33.

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