Australia's AusNet to engage with APA over $7.4 bln bid after panel order
Oct 15 (Reuters) - AusNet Services said on Friday it would engage with gas pipeline operator APA Group's $7.39 billion takeover bid, after a government panel asked for an amendment to an exclusive agreement between the energy infrastructure firm and rival Canadian bidder Brookfield .
Australia's Takeovers Panel ordered AusNet and Brookfield to include a provision to terminate their deal if a better offer emerges, failing which it would remove a "no-talk" restriction in their agreement by Tuesday.
APA made an improved A$2.60 a share https://www.reuters.com/article/ausnet-services-m-a-apa-idINKBN2GG1WA cash-and-stock bid for AusNet in late September, a day after Brookfield sweetened its cash bid for a third time to A$2.50 and secured an exclusive eight-week period for due diligence.
That prompted the energy firm to approach the government panel to scrap or amend the agreement.
Brookfield did not immediately respond to a Reuters request for comment.
AusNet said it plans to continue to provide Brookfield access to its books, potentially alongside APA.
APA said it looked forward to working toward agreeing on terms for due diligence for its A$9.96 billion ($7.39 billion) proposal.
The agreement with Brookfield also included a A$5 million provision to cover the asset manager's costs.
($1 = 1.3475 Australian dollars) (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Ramakrishnan M.)
