(Repeat story published on Friday)
* Brookfield buys 19.2 pct of Asciano
* Australia's Qube already has 19.9 pct, vows to block
Brookfield
* Competition regulator may need to intervene
By Byron Kaye and Colin Packham
SYDNEY, Nov 6 (Reuters) - Canada's Brookfield Asset
Management BAMa.TO shelved a $6.5 billion buyout agreement
with Australian port and rail giant Asciano AIO.AX and said it
will launch a formal takeover offer instead, threatening a rival
proposal and raising the antitrust regulator's role in deciding
the outcome.
Since Brookfield and Asciano agreed to a buyout in August,
local port competitor Qube Holdings Ltd QUB.AX has bought
one-fifth of the target and vowed to oppose a Brookfield
takeover in favour of its own proposal to split the target's
assets between itself and global investment partners.
The Australian Competition and Consumer Commission (ACCC)
has also suggested it might stop Brookfield buying Asciano since
the Canadian suitor already owns some of the railways Asciano's
trains run on. It will make a final ruling on Dec. 17.
But on Friday, Brookfield fought back by buying its own
one-fifth stake in Asciano. And in a subtle but significant
change, it said it would delay the agreed buyout and launch a
formal takeover instead, meaning it needs only 50.1 percent
shareholder approval, rather than 75 percent.
That effectively kills Qube's chances of using its stake to
help block the deal, leaving the regulator to decide whether to
let Brookfield buy all or some of Asciano or block it outright.
The latter would leave the target for smaller Australian firm
Qube, chaired by the former head of Asciano's ports unit.
"These are highly strategic assets which are clearly highly
sought after, and we believe that the ACCC will need to
intervene," said Chris Stott, chief investment officer at Wilson
Asset Management.
Asciano shares rose 8 percent on Friday to A$8.95 ($6.39), a
seven-year high, having struggled to trade at Brookfield's
A$9.20 offer price amid concerns the deal may not clear
regulatory hurdles. The broader market was up 0.3 percent.
A Qube spokesman declined comment, while Asciano said it
continued to support Brookfield's bid and that it would agree to
defer a shareholder vote for the original proposal.
Brookfield's move pits one of Canada's oldest and biggest
infrastructure investors against a relatively small and new
Australian player, both drawn to the target company's steady
appeal amid tumultuous economic conditions globally.
It also underscores the attraction of Australian companies
in a year in which the local currency AUD= has fallen 13
percent and shares .AXJO have fallen 4 percent, cutting
valuations of firms seen as well regulated and having growth
potential.
Asciano, which has rail in every Australian state and
stevedoring in 40 locations, has been seen as especially
vulnerable because its earnings have been hit by a resources
slowdown, while it is expected to benefit from restructuring
aimed at automating ports and cutting costs.
($1 = 1.4006 Australian dollars)