SYDNEY -(Dow Jones)- The A$16.8 billion takeover bid by Mexico's Cemex S.A. (NYSE:CX) ( CX) for Australian building products company Rinker Group Ltd. (NYSE:RIN) (RIN.AU) will need to be increased in order to meet its 90% minimum acceptance condition after Sydney-based fund manager Perpetual Ltd. (Australia:PPT) (PPT.AU) said Monday the current offer was not sufficient.

Perpetual's head of equities, John Sevior, told Dow Jones Newswires the US$13 per share offer, equivalent to around A$17 per share, did not represent a sufficient premium for control of a company with assets the quality of Rinker's.

Perpetual holds over 10% of Rinker's shares, which closed 26% higher at A$ 18.58 Monday.

    (MORE TO FOLLOW) Dow Jones Newswires   10-30-06 0026   Copyright (c) 2006 Dow Jones & Company, Inc.