Transurban Rejects Buyout Bid

(Reuters) – The top shareholder in Transurban Group (TCL.AX) slammed a decision by the Australian toll road operator to reject a $3.7 billion buyout offer on Wednesday and said it had overpaid for its latest acquisition.

“We can see no logic in his decision and conclude the company has a disregard for the interests of long term shareholders,” Peter Doherty, Managing Director of Australian infrastructure investor CP2 said.

CP2 owns 14.5 percent of Transurban and joined in a bid on Tuesday by two Canadian pension funds to buy out the shares they do not already own in Transurban for A$5.57 a share, the day after the company announced a share sale at A$4.60 a share to help fund the acquisition of the Lane Cove Tunnel in Sydney.

“Whilst the company has claimed success in acquiring Lane Cove Tunnel in our opinion they have continued a policy of overpaying for assets, something we have encouraged them not to do,” Doherty said in a statement.

(Reporting by Sonali Paul; Editing Ed Davies)