Mariner Corporation has withdrawn its bid for listed funds management firm Austock Group.
The listed corporate investor informed the market yesterday of its decision to step away from the takeover by invoking a condition of its proposed agreement.
The condition stated that if after 25 June, the date of Mariner's initial offer, either Austock or any subsidiary of Austock sold or offered to sell one or more companies, then the arrangement was off.
"Notwithstanding this condition, on 9 July 2012 Austock announced an agreement to sell Austock's property management business to Folkestone Limited," Mariner said in a statement.
"We believe this was a blatant attempt to block Mariner's bid."
At this time, Mariner said it did not believe the deal was in "the commercial interest" of Mariner shareholders in the "face of the sale of Austock's principal business to Folkestone".
"There are many other opportunities for Mariner shareholders to pursue in the current market, and we believe it will be more productive for Mariner to turn its resources to pursuing those other opportunities," it said.
Last week, Mariner accused Austock of blocking its takeover bid through the sale of its property funds management business to a third party.
Mariner chief executive Darren Olney-Fraser told InvestorDaily it was the company's belief Austock's property transaction with listed funds management firm Folkestone was a move to "block the takeover".
"A company cannot sell its principal asset during a takeover bid," Olney-Fraser said.
Earlier this month, Austock announced it was selling its property funds management business to Folkestone.
Austock Property Funds Management has about $555 million in growth assets and manages four funds: the Australian Education Trust, Australian Social Infrastructure Fund, Austock Childcare Fund and the wholesale unlisted CIB Fund.
As part of the move, all Austock Property staff will join Folkestone.
Neither company disclosed Austock Property's price.
In late June, Mariner advised the board of Austock that it intended to make an offer to Austock shareholders to acquire their shares.
Initially the listed corporate investment firm said it would offer 10.5 cents per share, subject to 50 per cent acceptance of the offer. It later bumped up its offer to 11 cents per share.
