Bidding heats up for iiNet

A new dynamic is playing out in the battle to become Australia's second largest provider with M2 reportedly (via AFR (VIEW LINK) entering the bidding war. The report says M2 has made a $1.5billion 'all scrip' offer for iiNet - a decent premium to the TPG offer of $1.4billion. "M2's entry into the race for iiNet is likely to surprise some analysts and investors who thought the acquisitive Melbourne-based company had ruled itself out by buying New Zealand's Call Plus Group for $250 million a fortnight ago... Credit Suisse analysts have previously said M2 stood out as the party most likely to create a bidding war for iiNet..." There could be further bidders still to emerge. Chris Stott from Wilson Asset Management says in a recent article ((VIEW LINK) that Optus is an unknown quantity. "The great unknown is Optus – a question mark hangs over its new management team and investors and industry spectators alike are wondering how it will react to the changing industry landscape."