Some of Australia's largest grazing families are today set to trump a bid by Gina Rinehart and a Chinese investor for S. Kidman and Company by going to Canberra to announce a $375 million unconditional bid, renewing political pressure over foreign investment rules.
The all-Australian syndicate that includes scions of the cattle industry - the Buntine, Oldfield and Harris families - as well BRW Rich Listers Tom and Pat Brinkworth, will launch a counter bid to that of Mrs Rinehart and Chinese joint-venture partner Shanghai CRED.
Despite having been denied access to the properties in order to make a bid, the syndicate, known as BBHO, is forging ahead with cattleman Sterling Buntine leading the charge.
"We are in Canberra to let the politicians know we are real, that it's happening," Mr Buntine said.
"We will be seeking endorsement for our offer in the same way politicians have endorsed Gina's."
Mr Buntine and Malcolm Harris from Gogo Station in WA, representing one of the other syndicate families, are due to front the media talk about their bid with independent MPs Nick Xenophon and Bob Katter at lunch time today.
Mrs Rinehart's Hancock Prospecting and Shanghai CRED launched a bid worth more than $365m for the entire S. Kidman and Co business earlier this month with an arrangement that the company's largest station in the portfolio – Anna Creek Station – would be automatically sold with proceeds to be returned to Hancock and Shanghai’s Kidman business Australian Outback Beef.
Anna Creek Station, next to the Woomera test range, was central in the first decision by the federal government to knock back Chinese bids for the company.
It is understood the syndicate, which has notified the Kidman board of its intention, will announce today a bid that will be at least $10m higher than the Rinehart joint venture and will become unconditional at the weekend as Rabobank and the NAB compete to provide funding for the offer which does not require FIRB approval.
The controversial bidding process run by EY contains a $3.8m break fee between Kidman and Co and the Hancock joint venture if either decide to walk away.
The new bid from the families will provide for the $3.8m break fee.
The decision to announce the bid in Canberra comes amid pressure on the federal government to further scrutinise the Rinehart bid because of the involvement of Shanghai CRED, which had previously bid for the land but been rejected by the Foreign Investment Review Board (FIRB).
Maverick independent MP Bob Katter has put questions on notice to Treasurer Scott Morrison about whether he has held any meetings with Mrs Rinehart over the bid.
He has also asked Mr Morrison what assurances were in place that the majority shareholding in Kidman would not simply move from Hancock to Shanghai CRED.
Adelaide-based S. Kidman and Co controls just over 10 million hectares and has a cattle-carrying capacity of 185,000.
But the company has recorded several after-tax losses in the past few years, the most recent being a $1.4m loss for the 2013-14 financial year.
However, conditions have now changed and values for both cattle and rural properties have climbed considerably.