* Qube approach narrowly beats Brookfield's formal takeover
offer
* Competition regulator has concerns about Brookfield bid
* Regulator to rule on Brookfield bid Dec. 17
* Qube run by former head of Asciano 's ports operations
(Adds share reaction, regulator's stance)
By Byron Kaye
SYDNEY, Nov 16 (Reuters) - Australian rail and ports giant
Asciano Ltd AIO.AX said it will allow Qube Holdings Ltd
QUB.AX to conduct due diligence after it made an informal $6.3
billion takeover offer just above a rival bid from Brookfield
Asset Management Inc BAMa.TO .
Asciano, which has already recommended the formal offer from
Canada's Brookfield to shareholders, said it would open its
books to Qube and its partners as it was committed to maximising
value for owners of its stock.
The Brookfield bid has raised concerns within the Australian
Competition and Consumer Commission since Brookfield already
owns some train tracks Asciano's trains run on. Granting Qube
access to its books ensures Asciano has a serious buyout option
regardless of the regulator's decision on Brookfield's bid, due
Dec. 17.
Qube has said its bid would not raise red flags by the
regulator as it is primarily interested in the ports business
while other members of the consortium, Global Infrastructure
Partners and the Canada Pension Plan Investment Board, would
take the rail business.
A Brookfield spokesman declined to comment.
Qube, led by Chris Corrigan who ran Asciano's port unit for
16 years, last week made an informal cash and scrip approach for
Asciano worth A$9.25 per share, just above Brookfield's A$9.22
offer.
The fight has already seen both Brookfield and Qube take one
fifth of Asciano each.
Asciano shares were unchanged by the decision, trading down
1 percent in line with the broader share market. Qube shares
were steady.
The battle for Asciano underscores the attraction of
Australian companies in a year in which the local currency
AUD= has skidded 13 percent and the share market .AXJO has
fallen 7 percent, cutting valuations of firms seen as well
regulated and having growth potential.