KEY POINTS:
The board of Origin Energy - the Australian parent of Contact Energy - is expected to announce a deal with British suitor BG which could see Origin valued in excess of A$15 ($18) a share.
BG has already offered A$14.70 a share - or A$12.9 billion for the company which owns a 51 per cent stake in Contact - and has been waiting for the Origin board to decide whether it would accept or rebuff the offer.
Origin Energy shares went on trading halt yesterday pending an announcement today or tomorrow morning.
Origin said the announcement was expected to be material to its share price.
The Australian newspaper yesterday reported a deal valuing Origin at above A$15 a share was now on the table.
Market speculation is that the Origin board is likely to agree to a sweetened deal with BG.
Four weeks after BG first launched its bid for Origin, there is no sign of a rival bidder in the wings.
After the BG offer was made on April 30, shares in Contact Energy spiked as the local market anticipated the takeover premium flowing through to the New Zealand company.
But that prospect has faded as it has become clear that BG is not interested in keeping Contact.
Sources say it is looking for a quick sale and may even float the 51 per cent stake on market.
Yesterday, Contact chose to note the Origin halt with an NZX announcement but did put its shares on trading halt.
That would suggest Contact does not see the announcement by the Origin board as material.
Contact shares spiked 8c yesterday afternoon.
However the rise may have been due to investor enthusiasm for a decision to fire up a disused power station in Taranaki.
The shares closed for the day up just 1c at $9.10.
