'Not compelling': Link knocks back $3.6b takeover bid from US suitor

Takeover target Link Group has told investors the company is not officially for sale but the door has been left open for higher offers, after it rejected the third takeover bid in less than two months.

The superannuation fund administrator received two takeover offers in October from a private equity consortium led by Pacific Equity Partners and Carlyle valuing the company at about $2.9 billion, and on Monday received another bid from US group SS&C valuing the company at around $3.6 billion.

Link rejected SS&C’s offer on Thursday claiming it “does not represent compelling value” but has given both groups access to the company’s books and records, in anticipation of higher offers.

Morningstar’s senior analyst Gareth James said the company was not officially “in play” and predicted other investment firms could enter the race early next year. “They’re pretty adamant they’re not running a sale process at the moment,” he said. “A couple of firms have offered low-ball, indicative bids.”

“These indicative bids are almost just testing the water,” he said. “All the investment bankers will be calling around firms persuading them to put a bid in now.”

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Source: ‘Not compelling’: Link knocks back $3.6b takeover bid from US suitor