ACCC unlikely to block AGL purchase

By John Durie - The Australian

The ACCC is unlikely to lodge an appeal against the Competition Tribunal’s decision in favour of AGL’s $1. 5 billion Macquarie Generation acquisition, which means the company on Thursday will proceed to purchase the asset.

Put in those terms Origin comes out ahead, but there seems to be plenty of money looking for a home. AGL was trading down 2. 1 per cent at $14. 64 in a rising market today after falling 5. 5 per cent on the carbon-tax-related profit warning last week.

This will mean raising $1. 2 billion in equity, which together with a similar-sized raising from Origin for its Browse Basin purchase, means the two big listed integrated energy companies will be attempting to raise circa $4. 4 billion in the next few months.

Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report.

AGL has fallen 7 per cent in the last week alone after last week’s profit warning and amid uncertainty over who will replace Michael Fraser as boss.

Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website.

Investors then will have a choice between two vastly different funding choices: an Origin expansion into Browse Basin gas or an AGL investment in an aged NSW generator.

Read more here: Business Spectator

    

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