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DuluxGroup closes in on Alesco


DuluxGroup is creeping closer to gaining control of takeover target Alesco Corporation.

The paint maker on Friday said its holding in Alesco had increased to 49.18 per cent from 48.25 per cent in the three days since the takeover target held its annual meeting for shareholders.

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

It has also vowed to shake up Alesco's board soon after its offer becomes unconditional.

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.