Shareholders reject bid for Australia’s largest power company

  • Brookfield-led consortium’s $11 billion bid for Origin Energy fails
  • Shareholders owning about 69% of Origin’s stock voted for the takeover
  • Bid fell short of the 75% approval threshold needed to secure a deal
  • Opposition from pension fund AustralianSuper, which owns 17% of Origin’s stock
  • AustralianSuper accuses consortium of trying to get a valuable asset on the cheap
  • Brookfield’s offer was worth about 9.39 Australian dollars (US$6.27) a share
  • Brookfield believes it can accelerate Origin’s transition to clean energy
  • Brookfield would spend up to US$30 billion on accelerating Origin’s shift to renewable energy
  • Second time Brookfield has been thwarted in an effort to acquire an Australian power company
  • Origin’s board rejected a backup proposal from the consortium as overly complex
  • Consortium partners haven’t indicated whether they would return with another proposal

An $11 billion bid for Origin Energy, one of Australia’s largest power companies, was rejected by shareholders. The bid, led by a consortium led by Brookfield Asset Management, fell short of the 75% approval threshold needed to secure a deal. Opposition from pension fund AustralianSuper, which owns 17% of Origin’s stock, played a significant role in the bid’s failure. Brookfield believes it can accelerate Origin’s transition to clean energy and had offered to spend up to $30 billion on renewable energy initiatives. This is the second time Brookfield has been unsuccessful in acquiring an Australian power company. Origin’s board rejected a backup proposal from the consortium, and it is unclear if they will return with another offer.

Public Companies: Origin Energy Ltd. (ORG), Brookfield Asset Management (undefined), AGL Energy (undefined)
Private Companies:
Key People: AustralianSuper (pension fund), Mike Cannon-Brookes (Australian billionaire)

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Factuality Level: 7
Justification: The article provides information about the rejected bid for Origin Energy and the reasons behind it. It includes quotes from Origin and AustralianSuper, as well as details about the consortium’s offer and the shareholders’ vote. However, the article lacks in-depth analysis and context about the energy transition and the potential impact on Origin’s value.

Noise Level: 6
Justification: The article provides information about the rejected bid for Origin Energy and the different strategies adopted by investors in the energy transition. It includes details about the shareholders’ vote, the opposition from AustralianSuper, and the consortium’s offer. The article also mentions the previous failed bid by Brookfield for AGL Energy. However, it lacks in-depth analysis, scientific rigor, and actionable insights.

Financial Relevance: Yes
Financial Markets Impacted: Origin Energy and its shareholders

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to a financial event, specifically the rejection of an $11 billion bid for Origin Energy by its shareholders. There is no mention of an extreme event or its impact.

Reported publicly: www.wsj.com www.marketwatch.com www.marketwatch.com