UK
UK gas producer BG Group admitted defeat in its hostile bid for Australian coal-bed methane producer Origin Energy, but analysts said BG may shift its focus to another target or become a target itself.
BG said in a statement on Tuesday it would not increase or extend its A$15.50/share offer, which closes on September 26, and said it expected the offer to lapse, after Origin formed an $8 billion joint venture with U.S. oil major ConocoPhillips.
“The price implied by this newly announced joint venture is higher than BG Group is able to justify,” BG Chief Executive Frank Chapman said. “We wish Origin and ConocoPhillips every success with their joint venture.”
Origin said on Monday it had agreed to spin off its massive coal-seam gas assets in Queensland into a joint venture in which ConocoPhillips would inject up to $8 billion.
BG had hoped to use the reserves to expand a liquefied natural gas export terminal it plans to build with Queensland Gas Co.
Some analysts had predicted BG would abandon its bid after the Origin-Conoco tie-up, prompting BG’s shares to rally 6 percent on Monday.
The shares traded up 1.5 percent at pence at 4:02 a.m no fax payday loan. EDT, outperforming a 0.2 percent rise in the DJ Stoxx European oil and gas index.
Origin shares closed down 1.42 percent at A$17.40 before the announcement.