A report in The Australian says Origin Energy Ltd
(ASX:ORG) is part of a consortium bidding for Alinta Energy Group
(ASX:AEJ), formerly Babcock & Brown Power.
APA Group (ASX:APA) and Japan’s Marubeni are also part of the consortium with Origin who have reportedly approached Alinta in relation to a takeover of the company.
In April, Alinta announced that it had hired Lazard to consider and assess proposals, including the sale of assets in an effort to reduce its debt.
Alinta has a portfolio of 12 power stations and also operates the largest integrated private gas and electricity retailer in Western Australia, with over 580,000 customers.
The paper reports analysts at Credit Suisse saying that Origin, with $3.7 billion in cash, is well placed to pick up the WA gas and electricity retail operations and could possibly be looking at Alinta’s Braemar power station in southern Queensland.
Alinta recently opened its data room to potential bidders and has appointed Macquarie Capital Advisors and UBS as advisers.
Origin Energy earned close to $7 billion in the year to June 30, 2009.
