Hostile bidder Alinta fails to spark interest from AGL board

The two energy companies settle into a protracted David vs Goliath takeover battle which may see Macquarie Bank come to the rescue again.
February 23, 2006
The chairmen of two of AustraliaÆs biggest utilities companies met yesterday February 24 to discuss a merger initiated by AlintaÆs brazen on-market raid of Australian Gas Light Company AGL shares launched earlier this week.

The informal meeting was arranged reluctantly by AGL after its Perth-based competitor Alinta bought 19.9% of the companyÆs shares on the stockmarket during a three-day assault orchestrated by Macquarie Bank.

AGL is one of AustraliaÆs oldest companies with a market capitalization of A$8.2 billion, while Perth-based Alinta was only floated in 2000 and has a market capitalization of A$2.8 billion.

AGLÆs board, which is due to release its half-year results next Tuesday, has responded coolly to the takeover having already...

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