Origin changes tack on assets

Australia's Origin Energy today told shareholders to reject BG Group's A$13.8 billion (£6.43 billion) bid, formally signalling a change of plan for its assets.

Origin now says it may get more from a partnership deal to export gas to the booming Asian markets.

It has shortlisted bidders for a venture to convert coal-seam gas to liquefied natural gas, and investors should let that process continue, managing director Grant King said.

King is under pressure to come up with a lucrative deal for shareholders after repeatedly snubbing BG. A deal looked certain but Origin pulled out when a rival Aussie oil and gas company Santos unveiled the sale of its coal-seam gas assets to Malaysia's Petronas at an apparently higher valuation than BG's bid.

Since then Origin has looked at other options.

But with BG's offer attractive in the current climate, analysts say King must come up with something soon. He is said to have had talks with Royal Dutch Shell and BP.