KEY POINTS:
NZX today suspended share trading in Contact Energy, the country's second-largest listed company, pending a material announcement to its parent company.
Its shares were briefly halted yesterday after its 51 per cent owner, Australian power producer and retailer Origin Energy Ltd, requested a halt to its share trading.
Brokers said they were surprised trading resumed yesterday. The halt will apply until tomorrow, by which time the announcement was expected.
Origin was poised to accept an improved bid from Britain's BG Group, worth over A$15 ($18.59) a share, the Australian newspaper reported today.
BG was understood to not want the Origin's stake in Contact and a trade sale which may be part of the Origin deal would trigger a full takeover offer for Contact.
The Australian quoted industry sources as saying an announcement on the deal was expected today. At A$15, Origin would be valued at about A$13.2b, based on its shares on issue.
Origin boss Grant King won a higher price from BG after arguing that BG's original proposal of A$14.70 a share undervalued Origin's coal seam gas reserves.
The Australian had reported yesterday that BG had upped its bid to over A$15.
A report in the Australian Financial Review paper said today Origin was edging closer to accepting an improved offer from BG, "revolving around a price of between A$15 and A$16 a share." It did not cite any sources.
BG, one of the world's biggest shippers of liquefied natural gas, wants Origin's vast coal seam gas resources in Australia to feed its proposed LNG plant in the northern state of Queensland.
- NZPA sources expect Contact's buyer to be China Light & Power.
Contact shares were up 1 cent at $9.11 today, valuing the company at $5.3b.
- NZPA
