DuluxGroup complains to Takeovers Panel

Paintmaker DuluxGroup has asked the Takeovers Panel to stop takeover target Alesco Corporation from commenting on the DuluxGroup bid unless it has approval from the panel.

The Takeovers Panel, a body that reviews corporate control transactions, said on Thursday that DuluxGroup had submitted that statements made by Alesco in relation to the DuluxGroup offer were misleading and were likely to impact on an efficient, competitive and informed market.

"DuluxGroup seeks interim orders to the effect that Alesco not make any further announcements or other communications without panel approval," the panel said in statement.

DuluxGroup has complained that Alesco, in a letter to its shareholders on July 27, had prominently stated that DuluxGroup would be paying Alesco shareholders $1.90 under its offer.

This reference was followed by another reference to the independent expert's opinion that Alesco shares were worth $2.23 to $2.52 per share, including a premium for control of the company.

DuluxGroup also submitted that on or about July 27, Alesco's chairman and other Alesco representatives had made statements to the media that DuluxGroup had decreased its offer to $1.90 per Alesco share.

DuluxGroup maintained that the statements made by Alesco were incorrect and had not been corrected.

DuluxGroup has made a $210 million takeover offer for the building products supplier, which Alesco has rejected as too low and "undeliverable".

DuluxGroup's offer comprises of $2.05 a share in cash plus 18 cents in franking credits, totalling $2.23 per share.

The offer of 18 cents in franking credits is on the basis that Alesco declares and pays 42 cents per share in fully franked dividends.

Alesco declared dividends totalling 15 cents on July 24.

DuluxGroup has said that given this, and on the basis that Alesco declares no further dividends, its offer of $2.05 in cash would be delivered as $1.90 in cash plus 15 cents in dividends.

In addition, DuluxGroup has said, Alesco shareholders may also benefit from up to six cents in franking credits for a total potential value of $2.11 per share.

Alesco shares were one cent higher at $2.05 at 1206 AEST on Thursday. DuluxGroup was 15 cents higher at $3.21.