M2 Group Limited (ASX:MTU)
has this morning confirmed media reports it has made a competing bid for 100 per cent of iiNet Limited (ASX:IIN)
iiNet agreed to an $8.60 per share all cash takeover bid from TPG that valued the company at $1.4 billion.
M2 Group says it has offered an all-scrip bid worth around $11.52 per share or around $1.8 billion.
M2 says under its proposal iiNet shareholders would received 0.803 M2 shares per iiNet share plus a 75 cent special dividend.
iiNet shareholders would then own around 42 per cent of the enlarged group with iiNet continuing to operate as a standalone brand.
TPG has around three days to make a counter bid.
M2 Group reported a net profit of $38.5 million for the first half of the 2015 financial year.