PBL lifts its Burswood stake

KERRY Packer’s Publishing and Broadcasting is grinding its way closer to success in its takeover battle with Perth casino operator Burswood.

PBL has lifted its stake in Burswood to 37 per cent, up from 15.6 per cent when it announced its takeover offer in April.

To increase its chances of success, PBL’s broker UBS has established a rarely used institutional acceptance facility.

This is designed to facilitate acceptance of the offer by institutions that have previously criticised the price as being inadequate. PBL has also extended the acceptance period to 28 July.

It said it would not extend the offer any further unless its shareholding rises to more than 50 per cent or the Burswood board unanimously and unconditionally recommends that shareholders accept the offer.

PBL executive chairman James Packer said his company had “taken account of the concerns of the Burswood directors in relation to our offer”.

He added that the institutional acceptance facility “should give the Burswood board sufficient confidence to recommend acceptance of our offer”.

PBL also sought to discourage Burswood’s board from declaring a further special dividend by stating that it would not extend its offer beyond July 28 if such a dividend was announced.

PBL is currently offering $1.30 a share, after adjusting for a special 10 cents a share dividend. The price would rise to $1.36 if PBL lifted its stake to 90 per cent and Burswood’s board unanimously recommended PBL’s offer.