SYDNEY (XFN-ASIA) - Singapore Power is emerging as a contender to launch a counter bid for Alinta Ltd after Australia's biggest energy transmission group received a buy-out proposal from its senior management, The Australian Financial Review reported, citing sources.
Alinta's advisors Carnegie Wylie and JPMorgan are preparing to open a data room after the board decided to seek expressions of interest following the management buy-out proposal from a team including chief executive Bob Browning and chairman John Poynton who have since resigned from their posts with the company.
The buy-out is be backed by Macquarie Bank which has previously acted for Alinta.
The newspaper said Singapore Power's listed Australian offshoot SP AusNet has the operating experience and assets which could to lead to cost savings and synergies if it succeeded in a takeover.
SP AusNet declined to comment, the newspaper said.
Meanwhile, investment and advisor firm Babcock & Brown Ltd, which already holds 3-4 pct of Alinta, said it will be interested in bidding for Alinta, now capitalized at about 6.8 bln aud.
(1 usd = 1.27 aud)
bruce.hextall@xfn.com