ACCC to review BBC offer

An unsolicited offer for Babcock & Brown communities has drawn the attention of the consumer watchdog.

A $130 million partial scrip offer by Prime Retirement and Aged Care Trust for Babcock & Brown Communities (BBC) has attracted the attention of the Australian Competition and Consumer Commission (ACCC).

Prime’s Managing Director, Philip Powel said he received a letter from the ACCC informing him that the consumer watchdog intended to monitor the 40 per cent bid for BBC.

Mr Powell indicated that Prime would cooperate fully with the ACCC.

According to the Sydney Morning Herald, he said: “Prime Trust would comply with the request and provide full assistance to the ACCC review.”

The trust made an unsolicited bid for a $130 millions stake in BBC last Thursday with the aim of moving towards a full merger proposal later on.

At the time, BBC directors instructed shareholders to take no action as it investigated the unexpected offer.

BBC’s parent company, Babcock & Brown also holds a 14 per cent stake in retirement company Aevum.

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