UNiTAB Voting Delayed

The Australian Competition and Consumer Commission (ACCC), the country's corporate watchdog, has ruled to extend its calendar for an official decision on Tabcorp's aggressive $2-billion bid for UNiTAB.

The ACCC has announced that it will release its findings on August 2. The delay is reportedly caused by a series of requests for an extension on the deadline to complete submissions.

This extension has subsequently convinced Queensland-based UNiTAB to likewise reschedule a predetermined shareholders meeting for deliberations on rival Tattersall's merger. UNiTAB has released a letter to its shareholders saying the delay will allow more time for independent deliberation on the important matters to be discussed on the meeting.

UNiTAB recently released a statement, saying it is likely to delay the July 26 meeting, as it is only a week before the ACCC announces its decision on whether it will approve of or reject Tabcorp's bid on UNiTAB.

Meanwhile, analysts and observers agreed that one excellent reason for UNiTAB to hold the meeting after the ACCC decision has been announced is that UNiTAB shareholders probably vote on gambling giant Tattersall's bid if Tabcorp presents a better offer.

But if ACCC becomes a hurdle for Tabcorp, then UNiTAB stands to lose both merging opportunities. This perhaps is a significant part of the reason why UNiTAB needs as much time as it can get, probably until ACCC releases its decision, before UNiTAB shareholders meet again.