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Australian union calls on shareholders to reject private equity bid
7 August 2008
Shareholders of a port company in Australia are being urged to reject a bid from a private equity consortium to take over the venture, following concerns raised by an Australian maritime union.
National secretary of the ITF-affiliated Maritime Union of Australia (MUA) Paddy Crumlin yesterday said the AU$2.9 billion (US$2.6 billion) bid by Texas Pacific Group and GPI to take over Asciano was a recipe for job cuts, union busting and asset stripping. The plans were announced on Monday.
He called on shareholders of Asciano, which operates Patrick Stevedores, to reject the bid.
"What we see here is short term equity pirates looking for a quick cash fix at Australia's expense," he said.
"This will mean that one of Australia's key transport companies face asset stripping and job cuts - at a time when the nation needs investment in this important infrastructure."
Crumlin added that he believed the Australian Competition and Consumer Commission needed to take responsibility for the current situation; the MUA has been warning the commission for three years that stevedoring companies were at risk of becoming takeover targets.
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