There is an article in today's AFR that states CEU's move to pay down debt will remove a key obstacle for a possible takeover bid by TCL.
It states that analysts now think that the capital raising makes it more likely that TCL will launch a takeover bid. They say a takeover bid will slash costs at CEU by up to $35MN.
They base the takeover assertion on the statistics that indicate that about half of the users of Eastlink also use Citylink and Monash Freeway, both owned by TCL.
CEU Price at posting:
37.3¢ Sentiment: Hold Disclosure: Held
