Macquarie-led group makes counterbid for Australia's Tatts - source

By Jamie Freed

SYDNEY (Reuters) - A consortium led by Macquarie Group Ltd (MQG.AX) has made an offer for Tatts Group Ltd (TTS.AX), disrupting an agreed deal between the lottery operator and Australia's biggest bookmaker, Tabcorp Holdings Ltd (TAH.AX), a source familiar with the situation said.

The offer from Macquarie and pension funds that are part of the consortium includes a mix of cash and shares in a spinoff company, the source told Reuters, adding the Tatts board had yet to decide if it offered superior value to a A$6.4 billion (3.8 billion pounds) cash-and-stock bid from Tabcorp.

The Macquarie-led offer comprises A$3.40 per share cash for the lotteries business and shares in a spinoff wagering company the consortium values at A$1 to A$1.60 a share, the source said.

That compares with Tabcorp's offer of 0.80 Tabcorp shares plus A$0.425 cash for each Tatts share held, which equated to A$4.145 based on Tabcorp's closing price on Tuesday.

Tatts and Macquarie both declined to comment. Tabcorp could not be reached for comment.

Tabcorp in October agreed to acquire Tatts to create a gambling powerhouse in an effort to fend off a growing challenge from overseas online rivals.

In November, Tabcorp purchased control of around 10 percent of its takeover target Tatts for A$638 million, at which time a source familiar with the situation told Reuters that the share purchase by Tabcorp was meant to make it harder for an interloper to break up the agreed deal between the pair.

The Tabcorp offer, which remains subject to approval from Australia's competition regulator, will require the approval of 75 percent of Tatts shareholders.

(Reporting by Jamie Freed; editing by Lisa Shumaker and Diane Craft)