IFM Investors has stepped up its potential interest in...

IFM Investors has stepped up its potential interest in Australia's biggest live takeover.
As first reported by Street Talk on Wednesday, the well known infrastructure investor has hired investment bank UBS to advise on its options for gas network assets owner APA Group.
IFM is believed to be assessing whether it can put together a consortium to compete for the $13 billion APA, or at least be there should the company's existing bid fall over.
UBS is said to be helping IFM run the numbers and in introducing the fund manager to potential co-investors. It's a large deal and would likely need at least a small handful of equity investors to chip in.

It comes as APA and its advisers Macquarie Capital and JPMorgan put the company in front of potential acquirers including North American funds.


Street Talk first flagged IFM's interest in APA three weeks ago.  
It is understood IFM Investors has considered a tilt at APA in the past - including as recently as early this year - but has previously failed to find enough support to write the required $10 billion-plus equity cheque.
It comes as APA takes suitor, Hong Kong-based CK Infrastructure and two related entities, through due diligence. CKI offered $11 a share plus the scheduled 24c a share APA dividend.
CKI is not expected to run into problems in due diligence. It knows both APA and Australia's gas market well, and has no trouble finding the $23 billion or so required to make the bid (including debt).

However its offer is subject to approval from both Australia's competition regulator and FIRB.
The ACCC process is expected to play out first, before the deal lands on Treasurer Scott Morrison's desk with FIRB's view.
In a letter to gas market players last month, the competition watchdog asked whether other assets should be added to the offered package for the business to be effectively run as an independent business, and about "key challenges and risks" for potential purchasers.
It also inquired as to whether there are other areas of "competitive overlap" between the two businesses that should be addressed through divestment.

Should IFM swoop, it wouldn't be the first time it has made such a move. It acquired a controlling stake in NSW electricity distributor Ausgrid two years ago, after an earlier bid by CKI was blocked by FIRB.