Origin rejects BG offer

Origin Energy Ltd has knocked back a A$13.6 billion ($16.9 billion) takeover offer from BG Group of the UK because it does not reflect the value of is assets and future potential.

BG had this week made an improved cash offer of A$15.50 a share, up from an initial A$14.70, or A$12.9 billion.

But Origin, which owns 51.4 per cent of New Zealand's Contact Energy, said that after taking expert advice on its coal seam gas assets, which resulted in an increase of its reserves, it had decided not to accept the proposal.

-NZPA