Intoll

In the quarter ended Dec. 31, the CPP completed a $3.4 billion acquisition of Australian toll-road operator Intoll, and co-invested in property with funds in the U.S. and Germany, spending $93 million on two office buildings in Washington, D.C., and $69 million for a shopping center near Cologne.

Canada Pension Investor Eyes U.S. Commercial Property Phred Dvorak 2011

Intoll has granted CPPIB access to information to conduct due diligence during the next three weeks, but hasn't been granted exclusive negotiation rights, leaving the way open for a possible bidding war.

Canadian Pension Bid for Tollroad Operator 2010

Intoll was formed earlier this year from the break-up of Macquarie Infrastructure Group.

Canadian Pension Bid for Tollroad Operator 2010

The response from Intoll, which owns 30% of the 407 ETR motorway outside Toronto, one of the world's most valuable road assets, and 25% of Sydney motorway the Westlink M7, suggests the A$1. 535 per security bid may not be enough to secure the necessary support of the target's board.

Canadian Pension Bid for Tollroad Operator 2010

At 0235 GMT, Intoll shares were 33.5 cents, or 30%, higher at A$1. 45.

Canadian Pension Bid for Tollroad Operator 2010

The proposal is subject to a number of common conditions, including endorsement of Intoll's directors and shareholders and Australian foreign-investment approval, but also requires that more than 10% of Intoll investors elect to roll over their stock into an unlisted investment vehicle.

Canadian Pension Bid for Tollroad Operator 2010

The bid for Intoll comes just two months after a CPPIB consortium had its A$7. 22 billion bid for fellow tollroad operator Transurban Group rebuffed.

Canadian Pension Bid for Tollroad Operator 2010

In a statement, Intoll said it hasn't yet decided whether to support the cash or unlisted share-based scheme of arrangement proposal from CPPIB, which gives shareholders the option of A$1. 535 cash per security or rolling over their investment into an unlisted investment vehicle.

Canadian Pension Bid for Tollroad Operator 2010

"The directors of Intoll have not formed a view as to the adequacy of the proposal and accordingly recommend that Intoll security holders take no action at this time," said Intoll Chairman

Canadian Pension Bid for Tollroad Operator 2010

"During this period, the [Intoll directors] will engage with CPPIB in order to determine whether an acceptable transaction can be agreed and put to security-ho lders," Mr. McClintock said.

Canadian Pension Bid for Tollroad Operator 2010