Date clash for vote on Tabcorp and Tatts $11 billion merger

THE timetable set down by gambling heavyweights Tabcorp and Tatts to carry out their $11 billion merger has blown out despite a court win.

Tabcorp chairwoman Paula Dwyer.

THE timetable set down by gambling heavyweights Tabcorp and Tatts to carry out their $11 billion merger has blown out despite a court win.

Australian Competition Tribunal president Justice John Middleton on Tuesday granted Tabcorp a speedy re-hearing of its application for approval of the merger in the face of protests from the competition watchdog and James Packer-backed corporate bookmaker CrownBet.

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However, the dates set down by Justice Middleton — October 24 and 25 — fall after a proposed meeting where Tatts shareholders are to vote on the deal, on October 18.

They also clash with the date by which Tatts hoped to get court approval, October 24.

The meeting and court approval date would need to be rescheduled, Justice Middleton said.

“This is unavoidable because the tribunal must consider all matters that need to be considered now that the matter is back before the tribunal,” he said. The push for a mega merger of the two gaming companies has now been under way for almost a year.

In good news for Tatts and Tabcorp, which is chaired by Paula Dwyer, if the tribunal again approves the deal, it will still be possible to consummate the marriage before Tabcorp’s offer expires on December 31.

A re-hearing is necessary because of a Full Federal Court finding that an earlier decision by the tribunal, waving the deal through, was void due to a legal error.

The court decision left Justice Middleton unsure whether the tribunal had the power to reconsider its original decision.

On Tuesday, he said he had formed the view that he did have the power — but to make sure the process would be bulletproof he suggested Tabcorp make a fresh application, to be heard at the same time as the re-hearing of the original decision.

Tabcorp shares closed 3c weaker at $4.33, while Tatts was down 7c to $4.06.