Hastings Diversified Utilities Fund (HDF), the subject of a takeover battle, said Pipeline Partners Australia has declined to match a sweetened A$1.4 billion ($1.47 billion) offer by the Monday deadline set by HDF.
The offer from rival gas distributor APA leaves APA in the lead to win control of two key gas pipelines owned by HDF that serve Australia's main onshore gas hub, Moomba.
Analysts say growth prospects are strong because of new coal-seam gas projects and huge liquefied natural gas export projects in Queensland state.
APA on Friday raised its cash and share bid by 4.8 percent by increasing the cash component. HDF, which had recommended an all-cash offer worth A$1.29 billion by Pipeline Partners, said it has told Pipeline Partners that the new APA bid was superior.
HDF said its board would meet to consider APA's revised offer.
This article is copyrighted by Reuters
Join the Conversation