Alinta chooses Babcock and Brown

A consortium led by the investment bank, Babcock and Brown, has emerged as the winner of the bidding war for Western Australian gas provider Alinta.

Alinta has announced to the Stock Exchange that it has thrown its support behind an improved offer from Babcock and Brown and Singapore Power valued at just over $16 a share.

That will include $8.92 a share in cash, plus shares in three listed Babcock and Brown funds as well as the APA group, which is associated with Alinta.

Babcock and Brown has been in a tussle for ownership of the Western Australian gas provider with rival bidder Macquarie Bank.

Alinta's acting chairman John Akehurst says the consortium's offer is clearly the best one for shareholders and he does not expect this to change.

"If somebody sees more value in the company than is currently recognised by this agreement with Babcock and Brown and Singapore Power, then they're able to make a proposal but we're certainly not looking for that," he said.

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