AGL Energy depressions Having failed bid to buy New South Wales energy assets

AGL Energy Ltd. fell the most in almost two years in Sydney after failing to buy energy assets of New South Wales Australia amid reports rival Origin Energy Ltd. and a unit of CLP Holdings Ltd. success .

AGL, which said it could not justify the initiation of a higher bid, fell 4.9 percent to $ 15.07 at the close 4:10 pm, the most since January 23, 2009. Source halted its shares for an announcement of an acquisition and CLP suspended its shares in Hong Kong. Australia's benchmark S & P / ASX 200 gained 0.2 percent.

AGL missed an opportunity to add customers and increase revenues through acquisition of part of the assets, estimated by Citigroup Inc. to be worth as much as A $ 8 million ($ 8 billion). The State put retailers EnergyAustralia, Country Energy and Integral Energy for sale, and contracts "gentrader" or commercial rights of the electricity produced by state-owned generators.

"No doubt it's disappointing that I do not understand," said John Hirjee, an analyst at Deutsche Bank in Melbourne, by phone today. "But if what you are saying is correct and would not pay a high price for the assets, then displays the price discipline."

AGL may lose its position as the largest electricity distributor in Australia if the home is purchased Integral Energy and Country Energy and TRUenergy Holdings Pty, the Australian unit of CLP, the EnergyAustralia, Hirjee said.

Alternative Plans

Sydney-based AGL said today it plans to build a new gas power plant in New South Wales as part of an alternative growth strategy. "AGL has said it would only bid for the assets at prices that reached the required returns for shareholders," the utility said in a statement. "AGL bid for the assets were priced in line with this principle."

AGL book will be a charge of about $ 13 million for expenses incurred in the bidding process said. The company will aim to "use its position in the market" to attract customers after failing to buy any food retailers.

A purchase would boost TRUenergy EnergyAustralia customer accounts by 1.4 billion, Citigroup said in a report released today. The retail and power generation assets of Western Delta may be worth $ 2.1 billion, the report said.

most populous state of Australia may announce today it will buy TRUenergy EnergyAustralia, Origin received while Integral Energy and Country Energy, the Australian Financial Review and newspapers in Australia reported today.

EnergyAustralia is valued at $ 1.3 billion, worth $ 772,000,000 Integral and Country Energy may sell at $ 1.03 billion, Citigroup estimated in a November report.

Citigroup said AGL would have been able to increase revenue with the acquisition of retail.