Ann: TPG to Acquire iiNet in a Recommended Transaction, page-61

Forgive me if I've missed it in the long thread, but no-one has discussed the impact of TPG's major shareholder, Soul Pattinson. They own around 27% of TPG, have Board representation and thus have a major say over the appointment of management. They have a similar approach as Berkshire Hathaway, buying controlling stakes in good companies and then retaining/putting in great management. They manage for the long term, not concerned about short term volatility.

So I'd value the opinion of their executives a lot more than the opinions of posters in this forum.

Soul Pattinson have substantial cash holdings which could be used to either provide some of the debt or to buy further equity. I wouldn't be surprised to see an equity raising underwritten by Soul Pattinson in the not too distant future. The potential to increase their shareholding from unexercised rights at below market price would be very tempting.

Accordingly, I wouldn't be in the slightest bit concerned about TPG's debt levels.

In relation to other bidders emerging, the fact that IIN are trading below the offer price tells me that the smart money (not represented in this forum) are pretty sure that there won't be a rival bid. I've read some posts from smart people here, but it's the smart money that sets the price in takeover situations.

Disclosure: I own shares in Soul Pattinson, IInet but not TPG.