The battle for control of Otago Power has intensified, with Southland-based electricity supplier the Power Company making a formal offer.
If accepted, it would pay $61 million for the business and assets of Otago Power.
Last week's offer by Dunedin Electricity was for fractionally less - $60.5 million.
The latest offer was made at a meeting in Balclutha.
Consumers of Otago Power could continue to have a stake in the firm if the Southland offer was accepted, said chairman Alan Harper.
A consumer trust structure would form the basis of its offer.
He said price was an important factor but not the only one.
Consumers would receive the benefits of ownership through annual discounts.
Last year, the Power Company passed on about $2 million in discounts to its consumers and it hoped to repeat that gesture this year.
A similar principle would apply for Otago Power consumers if it was owned by the Power Company.
This type of concept was seen as a "viable alternative" rather than merely offering to buy shares off shareholders, he said.
"It's a different ownership structure but the basic principles to that of a cooperative are not dissimilar," Mr Harper said.
Before the offer was formalised, Mr Harper said the Power Company would rather have waited for the Otago Power Board to complete shareholder consultation before making an offer.
The Power Company owns 50 per cent of Power Net, which manages Otago Power's network lines.
Because both companies already worked together, there was a "natural affinity" between the two mainly rural-based networks and the offer was a logical move.
Otago Power shareholders face another meeting to decide the power company's future.
Otago Power chairman Duncan Garvan said the board would continue with its present shareholder consultation.
It would assess the results of a poll - to close tomorrow - which asks shareholders to indicate if they would keep or sell their shares back to Otago Power for about $1.25 each.
Both offers "and other alternative proposals" would then be put to shareholders for consideration.
The board would also give shareholders the merits of each option.
If a sale of the network was approved by 75 per cent of shareholders, it would start an open sales process to maximise shareholder value.
Mr Garvan said shareholders would need to consider and make decisions on the proposals in due course.
"The board will ensure all shareholders are fully informed on the arguments for and against retention of the cooperative structure and network," he said.
It was likely a meeting would be called "in the foreseeable future" to vote on these issues.
But Mr Garvan also reaffirmed the board's decision that no share transfers would be registered and beneficial interests in shares not be transferred, pending further advice from the board.
- NZPA
Power to the People Supplement
Meanwhile, Greenpeace has described it as a 'Scorched Earth Budget'.