Australia's Origin subject of hostile BG bid

Tuesday, 24 June 2008 12:00

BG Group has lifted the lid on a hostile approach for Origin Energy in what is potentially Australia's second largest takeover.

The 13.8 billion Australian dollar (£6.7 billion) offer is the same as an unsolicited approach made a month ago that was rejected.

Origin Energy's bosses turned down the bid, but energy production and distribution company BG returned today insisting it provides full value to shareholders.

The 15.50 Australian dollars (£7.50) per share approach comes with a minimum acceptance condition of 50.1 per cent.

BG says it represents a 48 per cent premium on Origin's closing price of 10.47 Australian dollars (£5.08) on April 29th 2008.

The Berkshire-based firm is now calling on shareholders to consider the offer.

"Origin has good retail, power generation and exploration and production businesses," said BG chief executive Frank Chapman.

"Recent transactions, analysed on a comparable basis, confirm that BG Group's offer provides full value to Origin's shareholders."

A statement on Origin Energy's website urged shareholders to ignore BG Group's approach.

"Shareholders are advised that they should take no action in relation to the offer or any documents they receive from BG at this stage," the message read.

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