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BBP seeks name change to Alinta Energy

News: 18-November-09 by Rebecca Lawson


Embattled Babcock and Brown Power will seek shareholder approval to change its name to Alinta Energy at the company's annual general meeting next month.

In a notice of meeting released today, BBP said the Alinta Energy name "seeks to leverage both the ongoing strength and recognition of the Alinta brand in Australia, as well as the diversity of our business across the power generation and retail energy sectors".

"BBP believes that changing its name is a critical step in moving forward as an independent, stand-alone energy business," it said.

BBP owns Western Australian gas retailer Alinta. Shareholders will be able to vote on the name change on December 18.

Trading of BBP shares remain suspended as the company assesses the impact of the interim award handed down by an arbitrator last week, and continues negotiations with the North West Shelf partners over gas prices.

The Shelf partners and BBP-owned Alinta have been in a dispute for more than a year over the price the utility must pay for gas, which forced the matter to a formal arbitration.

The dispute flows from Alinta's refusal to agree to the significant price rise demanded by the Shelf partners as a condition of extending an existing Alinta supply contract.

While details of the interim award have not been made public, there are indications the ruling is against Alinta and speculation is rising that the utility will be forced to sell its assets if negotiations are not successful.

http://www.wabusinessnews.com.au/en-story/1/76815/BBP-seeks-name-change-to-Alinta-Energy&printstory