British Gas Makes $13.1 Billion Hostile Offer To Origin Energy

June 24, 2008 12:41 p.m. EST

Sydney, Australia (AHN) - Britain's BG Group Plc on Tuesday placed a hostile US$13.1 billion offer to buyout Australia's Origin Energy.

The $15.50 per share cash offer was made directly to the shareholders. The amount is said to be one of the largest bids received by an Australian company.

Origin, Australia's biggest producer of gas from coal seams, had rejected BG's buyout offer twice in recent months. In April, BG approached Origin with a $14.70 per share offer. In May, it raised its bid to $15.50.

In a news conference in Sydney, BG CEO Frank Chapman told ABC that his firm's current offer for Origin Energy was "full and fair value ... for all parts of the Origin business, including power generation and retail".

Chapman was firm in saying that BG will offer no higher than $15.50

Origin, for its part, cautioned shareholders from acting on the British Company's offer.