Tatts said it is assessing the offer and had not formed a view on how it compares with Tabcorp's.
Tabcorp's plan for an $11 billion merger with Tatts Group has hit a hurdle with a rival full takeover bid emerging from a consortium that includes Macquarie Bank and U.S. private equity firm Kohlberg Kravis Roberts.
Last October Tabcorp and Tatts declared that they had begun formal talks on a merger, which would seek to create the biggest Australian gambling enterprise, as the operators face increasing competition on home soil from worldwide betting firms.
In October, Tabcorp agreed to acquire Brisbane-based Tatts to form a gambling powerhouse in the hopes of fending off the increasing number of competitors from overseas online rivals. Most of Tabcorp's revenue now comes from its betting business, but adding Tatts' less volatile lottery operations would provide Tabcorp with additional stability, analysts say.
The new offer, which is contingent on due diligence, comprises A$3.40 per share cash for the lotteries business and shares in a spinoff wagering company the consortium values at A$1 to A$1.60 a share, Tatts said.
Pacific Consortium's offer, however, may put a wrench in Tabcorp's plans.
The Wagering & Gaming Co would be listed on the ASX if not sold to a strategic party.
"Our valuation for the wagering/gaming company is 55cps-about half of that assumed by Pacific Consortium", the analysts told clients on Thursday morning.
Macquarie, which has been focusing on building more stable business lines to shelter it from volatile trading and capital markets, owns 10 percent.
Radzyminski said he believed Ontario Teachers' Pension Plan (OTPP), the owner of United Kingdom lottery operator Camelot Group, might also consider bidding for Tatts. Based on yesterday's close, Tabcorp's proposal values Tatts at A$4.15 a share.
In the meantime, it said its directors "continue to believe" the Tabcorp bid is in the "best interests" of shareholders.
"Our proposal is simple, more certain and delivers for shareholders, the racing industry and a wide range of other stakeholders", a spokesman for Tabcorp said.