Rival to Canadian Brookfield's Australia port deal invokes national interest

By Byron Kaye
SYDNEY, Nov 24 (Reuters) - The Australian government may
order the country's freight industry to restructure if port and
rail giant Asciano Ltd AIO.AX is sold to Canada's Brookfield
Asset Management Inc BAMa.TO , a rival bidder said on Tuesday.
Australian logistics business Qube Holdings Ltd QUB.AX is
trying to give Asciano's shareholders a reason to warm to its
slightly higher indicative offer, which came after the target
company had recommended Brookfield's $6.5 billion buyout.
Qube Chairman Chris Corrigan's warning of government
intervention appears to be a bid to scare Asciano shareholders
into avoiding extra costs and supporting his firm's offer, made
in a consortium with a Canadian pension fund and a U.S.
infrastructure fund. Corrigan ran Asciano's port unit for 16
years until it was sold in 2006.
"You do require the container terminal operators to service
rail in an intelligent fashion. They'll do that either at their
own volition or they'll be told to do it by government,"
Corrigan told reporters in his first public remarks on the
takeover offer.
"It's more of a 'steady-as-she-goes' type of proposal from
Brookfield."
Qube has bought a one-fifth stake in Asciano, prompting
Brookfield to buy a similar stake. That means each firm could
deny the other full ownership.
Corrigan said Asciano had been considering an informal offer
from Qube for its port business when Brookfield offered to buy
the whole company.
"It wasn't clear that Asciano was a seller of the entire
business," he said.
The Australian Competition Consumer Commission has raised
antitrust concerns about Brookfield buying Asciano, and will
give its final ruling on Dec. 17.
Qube shares were down 0.8 percent and Asciano shares were
down 0.2 percent, in line with a weaker market.
($1 = 1.3900 Australian dollars)