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| UK Businesses For SaleBG in second offer to Origin shareholders
25/06/2008
BG Group, the British oil and gas giant, have pitched a second £6.7 bn offer for the Australian energy group, Origin Energy, directly to the shareholders.
The offer is at the same price that Origin rejected a month ago when talks between the two energy groups broke down close to a final agreement. Origin had changed its mind about the deal after details arose of a deal between Malaysia's national oil company Petronas and Australian oil and gas producer Santos. The chief executive of BG, Frank Chapman, reportedly said that Origin were wrong to reject the previous offer and he was sure that a direct bid to the shareholders would prove attractive. BG sees Origin, the Australia-based utility and coal seam gas group, as an opportunity to expand its presence in the Asia-Pacific region and to increase its assets in coal-seam gas (CSG), which is methane gas trapped underground by water in deep coal seams. Origin is an integrated energy group that has oil and gas acreage, three million retail gas and electricity customers in Australia and New Zealand, as well as a suite of power stations and gas pipeline operations. |
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