BG Group's recent US$12.9bn takeover bid for Australia's Origin Energy faces uncertainty following speculation over its value.
According to the Sydney Morning Herald, Origin's Managing Director Grant King stated BG's bid was not "challenging" and failed to account for the group's targeted new coal steam gas reserves in Queensland.
Forecasting a significant rise in gas prices due to growing demand in Asia, King urged for a revaluation of the bid to account for the earning potential of its resource projects.
Research from Credit Suisse has placed a US$16.33 target price on the company.
In a further blow, questions have reportedly been raised over BG's ability to fund the takeover in the midst of a global credit crunch.
Four banks are leading a syndicated loan to finance BG but no details have been revealed on how the move will be co-funded.
By staff writer
Related links
BG Group Bids for Origin Energy
