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Australian investment bank Babcock & Brown is considering a rival bid to a management buyout for power utility Alinta, and may team up with a partner on the bid.
"Given Alinta's board has sought interest parties, we'll definitely be interested in pursuing it," Babcock chief executive Phil Green told Reuters through a spokeswoman.
A source said Babcock was talking to a number of investment banks, including Merrill Lynch, UBS, Goldman Sachs JB Were and Deutsche Bank, but had not yet appointed advisers.
"Everybody is jockeying for position," the source said.
Another source said at least two parties had expressed interest, and a bid involving Babcock and a second party was more than likely.
The Australian Financial Review newspaper said in an unsourced report that Singapore Power had emerged as a candidate to lead a counterbid. Singapore Power was not immediately available to comment.
Shares in Alinta, which is capitalised around A$6.8 billion ($7.8 billion), were trading 0.3 per cent firmer at A$13.85 in morning trade.
Alinta announced a controversial management buyout proposal on January 9, sending its shares soaring.
It later sacked Australia's Macquarie Bank, which had aligned itself with the buyout group, as its adviser following conflict of interest claims.
Alinta has appointed Carnegie, Wylie & Co and J.P. Morgan to manage the process of dealing with expressions of interest from potential bidders.
Macquarie released a statement on Sunday saying it had acted appropriately and would continue to work with Alinta to resolve any issues over its participation in the management buyout proposal.
"Until protocols have been agreed between the two parties, Macquarie will not have a role," the statement said.
Alinta said last week it had not received any other takeover bids.
- REUTERS
