2006-06-01 Australia's Visy withdraws from Brambles' Cleanaway auction - report

Privately owned Visy Industries has withdrawn from bidding for Brambles Industries Ltd's Cleanaway waste management business, the Australian newspaper reported with citing sources.

The newspaper said Visy, controlled by billionaire Richard Pratt, withdrew from the auction after it became clear that Brambles wants to sell both Cleanaway and its industrial services division in one package worth around 1.6 bln aud.

It said Visy offered more than 800 mln aud just for Cleanaway.

Final bids for the businesses are due on June 16.

The Australian said the front runner remains a partnership between private equity firms Castle Harlan Australian Mezzanine Partners and Transpacific, which recently benefited from a bullish assessment of a successful acquisition by the research arm of Brambles' adviser, UBS.

Other contenders include a private equity consortium featuring CVC and Ironbridge, advised by Lazard Australia.

Brambles is selling the businesses as part of its strategy to concentrate on its CHEP pallets business and document management operations.

(1 usd = 1.31 aud)

bruce.hextall@xfn.com