Local stevedore Qube Holdings has edged ahead in its takeover battle for Australian rail and ports operator Asciano, after raising its offer to $9 billion.
Qube, along with consortium partners GIP, Canada Pension Plan Investment Board and China Investment Corporation, lifted the cash component of its bid by seven cents to $7.04 per Asciano share.
Including one Qube share, the revised offer now values Asciano at $9.01 billion, or $9.24 per share.
The improved bid helped gain the confidence of the target company, and Asciano's board on Monday declared Qube's offer superior to the $8.9 billion rival bid from Canadian infrastructure giant Brookfield.
The endorsement helped Sydney-based Qube edge ahead for the first time in the long-running bidding war.
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"It's a fairly valued offer. This is likely to put pressure on Brookfield to come up with an all-cash bid," IG's market strategist Evan Lucas said.
Asciano's board has now asked Brookfield to either match or beat Qube's offer by February 15.
The announcement comes days after the Australian Competition and Consumer Commission (ACCC) delayed a decision on the competing proposals by another month, until March 24. The consumer watchdog is assessing competition issues that may be raised by the takeover.
On Monday, the Qube consortium said it had raised its offer price partly in recognition of the expected cash generation by Asciano while the takeover battle plays out.
Qube is mainly vying for Asciano's Patrick ports business, which it says when combined with its own business, will double the size of the company and result in double-digit earnings.
Under the consortium's proposal, partners GIP, Canada Pension Plan Investment Board and China Investment Corporation will take over Asciano's Pacific National rail business.
The rival Canadian bidder has separately written to Asciano saying it is working to add two new partners to its own consortium, and is considering revising its proposal to an all-cash bid valuing Asciano at $9.28 per share.
However, Asciano said "at this stage there was no certainty that a new Brookfield Infrastructure proposal would be made or the timing of such a proposal".
In December, Brookfield offered to divest part of Pacific National's intermodal business, after the ACCC raised concerns regarding potentially reduced competition in rail haulage services in Western Australia and Queensland, if its bid was successful.
Asciano shares finished the session 21 cents higher at $9.10 in a weak market.
