BG Group renews $13B offer for Origin Energy

Britain's BG Group launched a hostile bid Tuesday to buy Australian power company Origin Energy in a deal worth more than $13 billion.

BG Group's new takeover attempt follows a bid last month that was initially endorsed by Origin's board but later rejected after a separate deal in the industry caused Origin executives to rethink the company's value.

BG Group said in a filing Tuesday with the Australian Securities Exchange it is offering 15.50 Australian dollars ($14.71) per share for Origin, for a total of 13.8 billion Australian dollars ($13.1 billion).

BG Group said the offer represented a 48 percent cash premium over Origin's closing price April 29, just before it announced its first offer.

"Recent transactions, analyzed on a comparable basis, confirm that BG Group's offer provides full value to Origin's shareholders," Chief Executive Frank Chapman said.

Origin Energy's board endorsed BG Group's initial offer, but then changed tack and declined to put the offer before shareholders after a news broke of a deal between Malaysia's national oil company, Petroliam Nasional Bhd., or Petronas, and Australian oil and gas producer Santos Ltd.

The 2.6 billion Australian dollar ($2.5 billion) Petronas-Santos partnership to build a liquefied natural gas plant using coal seam gas set a new benchmark for valuing those resources, analysts said.

At the time, Origin managing director Grant King said the company's coal seam gas assets made the company far more valuable than the price being offered by BG Group.

BG Group said Tuesday that the Santos-Petronas deal was not a relevant price benchmark for Origin's coal seam gas reserves.

Origin did not immediately respond to the new BG Group offer. Its shares were at 15.52 Australian dollars before trading was halted pending further announcements on the offer.

BG Group's offer is contingent on acceptance by holders of at least 50.1 percent of Origin's shares.