(Bloomberg) -- Australian funds manager Platinum Asset Management Ltd. has granted spurned bidder Regal Partners Ltd. a period of due diligence, opening the door to a potentially sweetened offer.
The two firms have agreed to a confidentiality deed in order to undertake mutual due diligence so that Regal can potentially improve upon its initial A$526 million ($360 million) offer, according to a statement Friday.
Sydney-based Platinum unanimously rejected the offer on Sept. 29 as too low, but said it was open to other bids. There is no guarantee that Regal will submit an improved offer, or that another bid will be attractive enough for Platinum to consider, the company said in the statement.
The pursuit is the latest in a series of plays by Regal to accumulate greater assets via deal making even as its funds under management have surged largely from performance. At the same time, Platinum has battled with outflows and cratering profits.
Platinum shares have declined around 9% this year, and are down about 75% from a peak in March 2021.
Subscribe to The Bloomberg Australia Podcast on Apple, Spotify, on YouTube, or wherever you listen.
©2024 Bloomberg L.P.