Origin Energy's top investor rejects Brookfield's 'low-ball' new bid

financialpost.com:

Origin Energy Ltd.’s top investor rejected a revised A$19.1 billion (US$12.5 billion) takeover plan by a Brookfield Asset Management Ltd.-led group, casting the year-long pursuit into new doubt.

The utility disclosed an amended bid from Brookfield and EIG Global Energy Partners and delayed a planned Thursday vote on their A$9.43 a share offer until Dec. 4, after proxy results showed the existing proposal would fail.

Under a new plan, if shareholders reject the takeover next month, the suitors intend to pursue an alternative strategy to acquire the business in separate parts at a lower price, with Brookfield offering about A$12.3 billion for Origin’s energy generation and retailing business. The group put forward an initial bid in November last year.

“This latest low-ball offer strengthens AustralianSuper’s view that the offer remains substantially below our estimate of Origin’s long-term value,” the pension fund, which confirmed it has lifted its stake to more than 17 per cent, said in a statement.

Origin, the country’s largest utility, should remain owned by AustralianSuper’s members and other investors, rather “than a private equity consortium planning to shortchange them,” the fund said.

The energy company’s shares closed down 1.7 per cent at A$8.275, the lowest price since May 25.

Under the new amendments, if the current proposed takeover went ahead Brookfield would give institutional investors an opportunity to re-invest into Origin’s energy generation and retailing business.

In the event investors vote against the deal, Brookfield has proposed to acquire Origin’s energy unit and EIG would make an off-market takeover offer for the remaining business, which would comprise of liquefied natural gas assets. Under that