stos new bid, page-5

Australia[rajquotes]s Santos increases offer for QGC to 1.80 aud a share
Published on : Tue, 30 Jan 2007 05:29
By : Agencies
URL : http://www.abcmoney.co.uk/news/30200713949.htm

SYDNEY (XFN-ASIA) - Oil and gas producer Santos Ltd said it has increased its takeover offer for coal seam gas producer Queensland Gas Corp Ltd (QGC) to 1.80 aud a share or around 710 mln aud.

This follows QGC's rejection of the bid made last October at 1.26 aud a share or 606 mln aud as inadequate.

Under Santos' new proposal, QGC shareholders would receive 1.30 aud per share in cash in return for QGC's Undulla Nose coal seam gas assets in south-east Queensland.

In addition, QGC shareholders would also receive shares on a one-for-one basis in a 'New QGC' that would own a number of QGC's existing highly prospective tenements.

Santos said its improved offer is superior to the current AGL Energy Ltd proposal and gives QGC shareholders an opportunity to exchange all of their shares at an attractive price and substantially more cash.

In December, Australia's largest energy retailer AGL Energy proposed to pay up to 292 mln aud for a 27.5 pct stake in QGC through a placement priced at 1.44 aud a share.

QGC board members agreed in principle to AGL's offer which, like Santos' original offer, has yet to be approved by QGC shareholders.

(1 usd = 1.29 aud)

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