Origin reiterates BG rejection

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Date: Friday 04 Jul 2008

LONDON (ShareCast) - Energy producer Origin has asked its shareholders to reject the $13.1bn bid from British gas group BG Group.

Origin said it continued to see strong interest in the coal seam gas (CSG) sector and believes better value could be made by making separate deals to either sell its CSG assets or jointly develop them.

But BG countered by saying that Origin must spend a “significant amount of time and money” to prove up its CSG potential and that it still lags behind its competitors.

“Origin has not yet addressed the very significant risks for shareholders inherent in any alternative proposals to monetise its gas resources,” said BG.

“Nor, in rejecting BG Group's bid, has Origin indicated with any degree of certainty that any of those alternatives could generate higher value for shareholders when compared against BG Group's all-cash offer,” it added.

Origin has set a deadline of 7pm local time (9am GMT) on Friday for expressions of interest in its CSG assets.

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