The bidders for Fairfax Media are offering less for more with their new offer, writes AFR Chanticleer columnist Michael Smith: TPG is now offering to buy the entire company for $1.20 per share. This addresses the structural concerns around its original bid and the cost of separating its operations while offering shareholders the more attractive alternative of an all-cash proposal. The latest move also shows TPG is serious about getting its hands on the fast-growing Domain business.
At face value, the latest offer values the entire company at less than its original offer a week ago.
FXJ Price at posting:
$1.07 Sentiment: Hold Disclosure: Held
