Ergon Waits On Identity Of Mystery Energy Bid
The Age
Wednesday March 22, 2006
AUSTRALIAN Energy may become the subject of a bidding war after almost 9 per cent of the company changed hands for 5? more than Queensland utility Ergon Energy's $1.95 a share bid.
Government-owned Ergon announced its intention to buy Australian Energy, which trades as Powerdirect, just before Christmas in a deal worth $103 million. Australian's directors recommended the deal and shareholders vote on the scheme of arrangement on March 30.On Monday, MM&E Capital, controlled by former McIntosh Securities principals John McIntosh and John Magowan, sold 4.36 million shares in Australian at $2 - 5? above the $1.95 Ergon offer. The deal is believed to have been done by Austock brokers but the identity of the buyers will not be known until a substantial shareholder notice is issued this morning. Analysts viewed the Ergon offer as fully priced, so it is also possible the mystery buyers could be trying to prevent Ergon's takeover of Australian. -- ROD MYER
© 2006 The Age