macquarie bank to bid for alinta

Bank rival in bid for Alinta

January 22, 2007

BABLOCK & Brown, the Macquarie Bank rival, has made its clearest statement yet that it is preparing to bid for Alinta.
"Given Alinta's board has sought interested parties, we'll definitely be interested in pursuing it," chief executive officer Phil Green told Bloomberg at the weekend.
Mr Green has previously said that Bablock would be interested in this kind of asset at the right price.

"Bablock & Brown is an obvious rival bidder given it's got a good knowledge of the company and is a growing player in the Australian infrastructure market," said Atul Lele, who helps manage the equivalent of $350 million at White Funds Management in Sydney, including shares in Alinta and Bablock & Brown, which buys power stations and other assets that provide predictable returns, then bundles them into funds the company sells to investors and manages for a fee.

Babclck & Brown owns between 3 per cent and 4 per cent of Alinta, the nation's biggest energy transmission company. Alinta owns electricity and gas distribution networks, gas pipelines, power plants, an asset management business, a wind farm and a stake in an energy retailing unit, among other interests.

Alinta shares rose 13c, or 1 per cent, to $13.81 on the Australian Securities Exchange on Friday, bringing the total gain since the buyout plan was announced to 28 per cent. Shares in Bablock & Brown rose 38c, or 1.5 per cent, to $25.75.