AUSTRALIA/CANADA - Australian pension reserve fund Future Fund has terminated discussions with the Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers' Pension Plan (OTPP) regarding their proposal to acquire Transurban Group.
On December 10, the Future Fund confirmed it was in preliminary discussion with CPPIB and OTPP to support the proposal by the two pension funds to acquire toll road owner and operator Transurban Group.
An initial proposal tabled by the two Canadian investors was rejected in November by Transurban. In a statement, the company said it rejected the proposal "on the basis that it was incomplete, highly conditional and did not provide sufficient value for Transurban's security holders".
The proposal offered Transurban's shareholders A$5.25 (US$4.80) per share.
Transurban confirmed confidential discussions took place with CPPIB and OTPP during the week commencing March 15, but it added the funds have not presented any further proposal to date.
Spokeswomen for CPPIB and OTPP declined to comment further.
The Future Fund was established in 2006 to assist Australian governments meet the cost of public sector superannuation liabilities by seeking returns through investing the contributions to the fund.
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