Asciano boss says he's open to fair takeover offer

MELBOURNE — Australian ports and rail operator Asciano Group's chief executive said Wednesday his board is open to a fair takeover offer after earlier this week rejecting an unsolicited 2.89 billion Australian dollar ($2.69 billion) bid.

Asciano directors on Monday rejected the bid by U.S. private equity group TPG Capital and independent investment fund Global Infrastructure Partners to buy all the company for 4.40 Australian dollars ($4.10) cash a share. There was also a share-exchange alternative.

Asciano said the offer undervalued the business.

"The board will keep an open mind, of course, for an offer of the whole company that reflects fair value," CEO Mark Rowsthorn said Wednesday during a briefing on the company's annual results.

"To gain a recommendation from the board and the right to conduct due diligence, any proposal must recognize the value of our unique set of assets and must contain a sufficient control premium, and this proposal did not reach the mark," he said.

Asciano, which was spun out of Australian transport giant Toll Holdings in June last year, on Wednesday reported a net loss of $182 million Australian dollars ($167 million) for the fiscal year that ended June 30.

Underlying earnings for the year were $653 million Australian dollars ($599 million), in line with the company's guidance.