Origin poised to take BG's £6.8bn

Australian gas producer Origin Energy is poised to accept the increased takeover offer by BG Group, valuing it at up to A$14.1 billion (£6.8billion).

Origin is the country's biggest coal-seam gas producer and BG is eager to gain control of its gas resources in eastern Australia, which may provide fuel for liquefied natural gas sales into northern Asia. Shares in Origin, which is also Australia's second-biggest electricity and gas retailer, were suspended ahead of an announcement.

BG originally offered A$14.70 a share in cash for Origin but yesterday increased its bid to as much as A$16.

Origin boss Grant King had argued that the original proposal undervalued the company's gas reserves.

BG in February formed a venture with Queensland Gas to build an A$8billion LNG export project in Gladstone in the state.

It has been suggested that that project could raise concerns with the competition regulator, which must approve any deal for Origin.