- Tuesday, 21 December 2010 | Vishal Teckchandani
"As a result, KKR's indicative proposal to acquire all of Perpetual's shares via a scheme of arrangement will not be proceeding," Perpetual said.
Perpetual first announced on 18 October that it had received an "indicative, incomplete, conditional, and non-binding proposal" from KKR to acquire all of Perpetual's shares via a scheme of arrangement at $38-40 per share.
Later in the month Perpetual said that the proposed takeover price did not reflect the company's true value, but that shareholders' interests would be best served by conducting exploratory discussions and providing limited financial information to KKR.
"These discussions were aimed at exploring whether a satisfactory offer could be developed that addressed key commercial terms and would be capable of being recommended to Perpetual shareholders," Perpetual said.
"However, the parties have agreed that such an offer by KKR can not be formulated. The board confirms that KKR will not be conducting any due diligence on Perpetual and does not anticipate any further discussions with KKR in relation to the proposal."
Lincoln Indicators equities analyst Michael Feller said that it was unlikely Perpetual would get a better deal.
"I always found it strange that KKR was making a bid for an Australian equities manager when our dollar was at parity and would have thought Perpetual would have jumped at what was a generous offer of between $38 and $40 per share - over 20 times 2012 earnings," he said.
"I don't think you're likely to get anything better than that as a Perpetual shareholder, especially when Perpetual's main asset is its team of analysts."
Perpetual also said that it expects to finalise the appointment of a new chief executive soon.
The current Perpetual chief executive David Deverall announced his resignation in June this year.
Deverall will stay on until a successor is chosen or until 31 March.
Latest from InvestorWeekly
- FTSE to provide pre- and post-tax LIC performance reports
- BlackRock to acquire $11bn private equity group
- legalsuper passes MySuper test
- Quadrant gets MySuper approval
- VicSuper to phase out tobacco investments
- Aussie banks at fair value
- CIMB Australia joins forces with RBS Morgans
- Financial firms form global research alliance
- NAB may lose Prime Super custody contract
- ASX launches Government Bond trading
- Convertible bonds: solid foundations are needed when reaching for the upside
- ING DIRECT urges third parties to prepare for Basel changes
- A straight-forward channel
- Crystal balls and consistent returns
- Shadow banking darkens China policy outlook
- Global listed infrastructure is safe bet for 2013
- Wealth management stocks flying high
- Too many trading halts leave a negative taste
- Lifecycle funds alone won't service retirement needs
- Why quality investing needs a modern dimension
- Aylward takes on APN CEO role
- Morningstar Australasia appoints Melbourne BDM
- Global manager adds Australian sales director
- Westpac expands Asian growth strategy
- Kerr Neilson steps down as Platinum CIO
- Morningstar Investment Management appoints global CIO
- Goldman Sachs expands distribution team
- TAL appoints new director
- IFM adds to investment team
- ANZ picks new managing director of global private banking