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Australia's Origin to recommend rejection of BG bid
AFP, July, 2008
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SYDNEY (AFP) — Australia's Origin Energy said Friday it planned to recommended that shareholders reject a 13.8-billion-dollar (13.1 billion US) hostile takeover bid by Britain's BG Group.
BG announced last month it would go directly to Origin's shareholders with the 15.50 dollars a share all-cash offer after the board of Australia's second largest power retailer snubbed a friendly bid at the same price in May.
Origin said then it could not accept the offer because its coal seam gas (CSG) reserves in Australia's Queensland state were more extensive and more valuable than previously thought.
"In rejecting BG's original proposal at the same price on 30 May 2008, the Origin Board gave careful consideration at the time to all relevant information including information that evidenced an increasing appreciation of CSG valuation," ...
