Perpetual Rejects EQT AB's Improved Offer, Ends Takeover Talks

By Stuart Condie

SYDNEY--Australian investment manager Perpetual rejected a third takeover proposal by EQT AB, ending its engagement with the Swedish private-equity provider.

Perpetual on Monday said EQT-controlled Windflower had proposed an all-cash payment of 22.50 Australian dollars, equivalent to US$16.03, a share.

That was the same as it proposed in its second indicative offer, but Windflower this time said it would still pay the full amount even if Perpetual declared a December-half dividend of up to A$0.60-a-share in the interim.

Perpetual said its board still believed the proposal undervalued the company, and flagged several assumptions by Windflower that it said raised unacceptable risk over whether the transaction would succeed.

"As the further revised proposal was expressed as a best and final proposal (in the absence of a competing proposal), Perpetual considers that the process of engagement with EQT has now concluded," Perpetual said.

In July, EQT approached Perpetual with a proposal valued at A$22.07 a share. It increased that to A$22.50 later the same month, prompting Perpetual to provide limited nonexclusive access to its books in hopes of attracting an acceptable offer.

Write to Stuart Condie at stuart.condie@wsj.com