Dulux seeks end to takeover stoush

7 Sep 2012, 5:31 pm   -   Source: AAP
DuluxGroup will accelerate payments to Alesco shareholders if their takeover offer is accepted. (AAP)

DuluxGroup will accelerate payments to Alesco shareholders if their takeover offer is accepted. (AAP)

DuluxGroup says Alesco shareholders who accept its $210 million takeover offer will now receive payment for their shares within five working days.

DuluxGroup says it will accelerate its payments to Alesco shareholders if they accept its $210 million takeover offer.

In the latest development in a tense battle between the paint maker and the building products company, DuluxGroup said on Friday its offer will also be made unconditional once it takes a controlling stake in Alesco.

The companies have been locked in a battle over dividend payments linked to the takeover offer.

DuluxGroup has offered $2.05 a share, incorporating up to 42 cents a share of fully franked dividends.

Alesco had said it would only support an offer that incorporates the ability to pay fully franked dividends of up to 75 cents a share, but the Takeovers Panel has since adjudicated that such an offer was not possible.

The dividend components offered by Dulux and demanded by Alesco each include 15 cents of dividends already determined and payable to Alesco shareholders on September 7.

Despite Alesco urging shareholders to reject the DuluxGroup offer, the paint maker has so far taken its stake in Alesco up to 45.5 per cent.

Alesco has also set up its own facility for shareholders who want to accept the DuluxGroup offer and receive an additional dividend of up to 27 cents from the takeover target.

But DuluxGroup on Friday said the removal of all conditions on the offer once it takes a 50.1 per cent stake in Alesco, plus payments to accepting shareholders within five business days, made its offer more compelling than Alesco's acceptance facility.

DuluxGroup managing director Patrick Houlihan said the latest move was aimed at bring an end to the long-running takeover battle.

"Clearly it is time to expedite this transaction so the growing number of accepting shareholders can be paid," he said in a statement.

"If our offer lapses, then Alesco's share price is likely to fall significantly."

Alesco shares dropped two cents to $1.89 and DuluxGroup shares gained one cent to $3.31.

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