A group of investors including KKR and Morgan Stanley has mounted a $5.5 billion offer for Australian gambling operator Tatts Group (ASX: TTS), a move that could jeopardize an agreement the company struck in October to be purchased by rival Tabcorp (ASX: TAH) for about $5 billion. Tatts announced in a regulatory filing that it “has not yet formed a view” about how the two offers compare.
The Tabcorp deal implied a A$4.34-per-share price for Tatts, while the new offer would be for somewhere between A$4.40 and A$5. The company’s stock jumped from A$4.15 at Tuesday’s close to A$4.49 at the end of Wednesday trading.
For KKR, the deal is just one of many billion-dollar balls in the air as 2016 comes to a close.
Article by PitchBook
