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BG's Aussie buy talks stay alive
09.05.08
Energy firm BG Group says talks with Australia's Origin Energy over its A$12.9 billion (£6.12 billion) takeover bid are continuing but are so far "inconclusive".
Executives of the two companies have met, and BG said it will make a further announcement "at the earliest practicable date".
BG last month offered to buy Sydney-based Origin, Australia's third-biggest power and gas retailer, for A$14.70 a share in cash to gain access to gas fields and deals to supply liquefied natural gas to Asia.
Origin says the offer represents a valuation that is "not at all challenging". BG expects the deal to be friendly, and to be sealed through a scheme of arrangement.
The proposal will require the approval of BG shareholders. BG has received commitments from banks that had agreed in-principle funding for the transaction, it said.
Origin, Australia's largest producer of gas from coal seams, holds the country's biggest volume of proven and probable reserves of the fuel, totalling about 22.3 billion cubic feet.
Asian gas deals are highly lucrative, with prices paid by utilities in Japan almost double the US benchmark.
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