Australia's TPG Telecom in billion dollar takeover bid

Australia's TPG Telecom announced Friday a Aus$1.4 billion (US$1.08 billion) bid for rival iiNet in a merger that would form the nation's second-largest Internet service provider.
The two companies said in a joint statement that iiNet's board unanimously recommended the offer.
"iiNet and TPG are highly complementary businesses in terms of geographic presence, market segments and corporate customer base," TPG's chief executive David Teoh said.
"The combined businesses will provide broadband services to over 1.7 million subscribers and will be well-positioned to deliver scale benefits in an NBN environment."
The NBN, or national broadband network, aims to connect most Australian homes to superfast Internet over the next few years.
iiNet chairman Michael Smith said the offer was a "significant reward" for shareholders and described the Aus$1.4 billion price tag as a "tangible measure" of the company's value.
Sydney-based TPG has 748,000 broadband customers and Perth-based iiNet has 975,000, which combined would push it ahead of Singtel Optus' almost one million estimated customers.
Telstra, the country's dominant telecoms firm, has three million broadband customers.
Under the proposed takeover, TPG will offer iiNet shareholders Aus$8.60 per share. The shareholders would also be entitled to TPG's latest 10.5 Aus cents interim dividend.
TPG currently owns 6.25 percent of its rival.
TPG shares surged 14.34 percent to Aus$8.85 in early trade, while iiNet stocks jumped 24.67 percent to Aus$8.49.
The Australian Competition and Consumer Commission (ACCC) said in a statement that it would undertake a public review of the merger proposal after submissions from the two firms.
"The ACCC reviews mergers and acquisitions which have the potential to raise concerns under the Competition and Consumer Act 2010," the watchdog said in a statement.