SYDNEY, Jan 24 (Reuters) - DUET Group DUE.AX shares have fallen by 5.5 percent over the last week amid growing market concerns the Australian government will block or impose restrictive conditions on Hong Kong's Cheung Kong Infrastructure Holdings' (CKI) 1038.HK $5.5 billion takeover offer for the utilities group.
The Australian government announced a new infrastructure body on Monday that will check whether foreign-led bids for key assets, including power grids and ports, pose any national security risks. investment bankers with experience in the infrastructure sector told Reuters they believed the new body increased the prospect the DUET deal was unlikely to be given the green light from the Australian government in its current form.
The bankers, who are not directly involved with the deal and declined to be named because they were not authorised to speak with media, said at a minimum, local ownership requirements were likely to be imposed on some of the assets.
Officials from CKI and DUET were not immediately available for comment, while the new government body, Critical Infrastructure Centre, has yet to comment on the deal.