New bidder enters AWE race, page-45

extract from AFR

Possible third offer

Speculation is rife that Beach Energy may yet enter the race for AWE once it ties up its $1.59 billion takeover of Lattice Energy, the Origin business that owns the other 50 per cent of Waitsia. Beach is understood to have been uneasy about the prospect of a Chinese partner in Waitsia, but may also not be comfortable with an inexperienced gas player such as MinRes.

RBC Capital Markets analyst Ben Wilson said the AWE share price reaction suggests the market is positioning for either a higher bid from CERCG, a higher revised offer from MinRes or a possible third offer.

He said a cash bid at a similar price to an implied scrip bid would likely be preferred by shareholders and the AWE board.

Under the MinRes bid, AWE shareholders would end up owning about 13.1 per cent of the combined group. MinRes has a market value of about $3.1 billion.