Shares in iiNet soared after a second bidder emerged for the internet services provider with an offer valued at $2.25 billion.
M2, which runs the brands Commander, Primus and Dodo, says its bid is valued at $11.37 per share, including M2 shares and a special dividend plus synergies.
This compares to the $8.60 a share cash offer from TPG. Under that deal, TPG/iiNet would be a major force in Australian telecommunications with 1.7 million customers, revenue of $2.3 billion and staff of about 5,200.
The new M2 bid is being consider by the board of iiNet.
iiNet shares were trading trading more than 12% higher at $9.74. M2 was down about 6% to 10.83 and TPG was weaker by 4.4% to $9.17.