Dulux poised to take control of Alesco

DuluxGroup is poised to take control of reluctant takeover target Alesco Corporation.

The paint maker on Friday said its holding in Alesco had leapt to 50.2 per cent, just three days after the takeover target held its annual meeting for shareholders.

Dulux has previously said it would declare its takeover offer unconditional on or after October 1, once it reaches 50.1 per cent.

It a statement, Dulux said it still planned to declare its offer unconditional to take control of Alesco on October 1 unless it strikes a deal with the construction products group before then.

Dulux managing director Patrick Houlihan urged the Alesco board to recommend shareholders accept its $210 million takeover offer, saying he was keen to hold talks immediately.

"Alesco's shareholders have spoken - shareholders holding the majority of Alesco shares have shown their clear support for the DuluxGroup offer," he said.

"If the Alesco board recommends our offer before 1 October, the parties can reach agreement to deliver the additional franking credits to Alesco shareholders."

Alesco has repeatedly rejected Dulux's $210 million hostile takeover offer, describing it as opportunistic and one that undervalues the building products company.

The pair have been locked in a battle over dividend payments linked to the takeover offer.

Dulux's $2.05-a-share offer includes up to 42 cents a share of fully franked dividends.

But Alesco will only support an offer that incorporated the ability to pay fully franked dividends of up to 75 cents a share.

At Alesco's annual meeting on Tuesday, chairman Mark Luby signalled the door was still open for further talks with Dulux.

"If and when we get to the point with Dulux being at 50.1 per cent we will consider our options at that point in time," Mr Luby told shareholders.

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