new bid for phy? I'm out of this stock but here's the news:New...

new bid for phy? I'm out of this stock but here's the news:

New bid for Pacific Hydro on cards

April 03, 2005
THE biggest shareholder of Australian wind farm group Pacific Hydro Ltd today confirmed it was considering making a counter-bid for the company.

Spanish company Acciona last week offered $700 million in a friendly takeover of Pacific Hydro, which has been supported by the Australian company's board.

But Industry Funds Management (IFM), which owns 31.73 per cent of Pacific Hydro, doesn't want to sell.

Instead, IFM's executive chairman Garry Weaven said the group was looking at making a counter bid for the company or even joining together with Acciona's bid.

Mr Weaven said IFM had been in talks with Acciona during the week.









"We're very carefully looking now at putting a proposal to them, but we don't at this point have any strong view that we will be able to reach an agreement," Mr Weaven told the ABC's Inside Business program.

He said if a deal was reached with Acciona, IFM was hoping to invest in other renewable energy projects outside of Australia.

"We would certainly explore that, as indeed we are exploring with other companies right now - and have been for some time - other opportunities."

He said IFM also had the financial capacity to make a bid entirely on its own, even if that meant offering more than $700 million.

"I think our clients, if anything, are short on deal flow, not short on cash," Mr Weaven said.

"It's one of the things that really weighs heavily with us - their desire to get their members' money placed in quality infrastructure assets, so I don't think cash is an issue."

Acciona offer of $4.50 per share to Pacific Hydro shareholders came after a strategic review initiated by the Australian company.

Pacific Hydro has agreed to a $6 million break fee should the deal - which requires 90 per cent shareholders acceptance - not go ahead with Acciona.

Pacific Hydro shares last traded at $4.44.