BG goes hostile in $13b bid for Origin Energy
Wednesday, 25 June 2008
SYDNEY, June 24 (AFP): Britain's BG Group launched a hostile 13.8-billion-dollar (13.1-billion-US) bid today for Origin Energy, which if successful would be one of the biggest foreign takeovers of an Australian firm.
BG said it would go direct to Origin's shareholders with the 15.50 dollars per share, all-cash offer after the board of Australia's second largest power retailer snubbed a friendly bid made at the same price last month.
The British firm is seeking to boost its presence in the rapidly growing Asia-Pacific market and to secure Origin's coal seam gas (CSG) reserves.
BG chief executive Frank Chapman said the offer was a 48- per cent premium on Origin's share price immediately before the bid was launched and represented full value for its takeover target.
Chapman said questions over Origin's CSG reserves meant an all-cash offer would be attractive to shareholders.
"In light of this, BG Group considers that Origin shareholders should be given the opportunity to consider its offer," he said in a statement to the Australian Securities Exchange.
The hostile bid, if successful, would be one of the largest foreign takeovers of an Australian firm. BG initially offered 14.70 dollars for each Origin share in April, and then increased its bid to 15.50 in May.
Origin rejected the second bid to the surprise of BG, which said it had believed the deal was on the verge of completion and had the backing of Origin's board.
BG said it would go direct to Origin's shareholders with the 15.50 dollars per share, all-cash offer after the board of Australia's second largest power retailer snubbed a friendly bid made at the same price last month.
The British firm is seeking to boost its presence in the rapidly growing Asia-Pacific market and to secure Origin's coal seam gas (CSG) reserves.
BG chief executive Frank Chapman said the offer was a 48- per cent premium on Origin's share price immediately before the bid was launched and represented full value for its takeover target.
Chapman said questions over Origin's CSG reserves meant an all-cash offer would be attractive to shareholders.
"In light of this, BG Group considers that Origin shareholders should be given the opportunity to consider its offer," he said in a statement to the Australian Securities Exchange.
The hostile bid, if successful, would be one of the largest foreign takeovers of an Australian firm. BG initially offered 14.70 dollars for each Origin share in April, and then increased its bid to 15.50 in May.
Origin rejected the second bid to the surprise of BG, which said it had believed the deal was on the verge of completion and had the backing of Origin's board.