Takeovers Panel rules on AGL-Alinta - Breaking News - Business - Breaking News

The Takeovers Panel has made an order to prevent either offer in the takeover battle between energy groups Australian Gas Light Company Ltd (AGL) and Alinta Ltd from becoming unconditional until it is clear that one bid has been successful and the other has not.
The Takeovers Panel has put the measures in place to prevent market disruption.
"The panel has required that both Alinta and AGL include defeating conditions in their offers which require them to acquire more than 50 per cent of the shares in their target and the rival bidder to have acquired less than 50 per cent of them, before their offers can become unconditional," the panel said in a statement.
"The panel has also required that the successful offer be open for at least two weeks after it becomes unconditional in order to allow shareholders the time to reassess their positions once control of the two companies has been decided."
In February, Perth-based Alinta made an $8.9 billion bid for larger east coast rival AGL, through a merger proposal that would create a combined group worth almost $12 billion.
But AGL turned the tables on its would-be suitor in March, making a counter takeover bid.
The effect of the order from the Takeovers Panel is that neither AGL or Alinta can declare their respective bids as unconditional until it achieves a 50.1 per cent shareholding in its target.
The Takeovers Panel made the declaration of unacceptable circumstances following an application from AGL.
AGL chief executive Paul Anthony welcomed the decision.
"This is consistent with AGL's submissions and the undertaking that AGL had been prepared to give the Takeovers Panel," he said.
"AGL welcomes the decision which, in effect, means that without the consent of the Takeovers Panel, neither Alinta nor AGL can declare their respective bids unconditional at below 50.1 per cent shareholding in the other."
Alinta has advised the panel that it intends to make an application for review of its decision.
At 1025 AEST AGL and Alinta shares were both trading five cents higher at $18.45 and $11.05 respectively.
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