Origin Energy Ltd, the biggest producer of coal seams gas (CSG) in Australia, rejected a hostile bid from British company BG Group earlier this month terming it as too low. Now, the company wants the Australian Takeovers Panel to stop the bidder's statements from being sent to its shareholders, saying the document contains deficiencies about the value and security of its assets. (See: Origin Energy spurns BG's $13.3 billion hostile bid)

The bidder's statement has been served on Origin and lodged with the Australian Securities and Investments Commission (ASIC) and the Australian stock exchange (ASX) but has not yet been dispatched to Origin shareholders.

The British company, which is offering $15.50 a share for Origin, in the document queries Origin's use of a $2.51 billion coal seam gas transaction between Santos and Petroliam Nasional Bhd (Petronas) to justify rejecting the bid. It also highlights rights held by third parties over some Origin reserves.

In its submission to the Takeovers Panel, Origin claims BG's statements on the Santos-Petronas deal and the so-called reversionary rights are "misleading". Origin submits BG has also inadequately disclosed its intentions towards the CSG assets.

Origin told the panel that BG's bidder's statement put a question mark over the security of Origin's permits in the Surat and Bowen basins in southern Queensland, which it said was misleading. It wants the regulator to require BG to lodge a replacement bid document, and to block BG sending to shareholders an amended version issued on Thursday.

The decision to invoke the panel could be construed as a delaying mechanism to allow Origin to find a buyer or joint venture partner for some or all of its CSG assets. Any delay to BG's dispatch gives Origin more time to sort out its options and the panel normally takes three or four days just to decide whether to appoint a sitting panel and examine the proceedings.

"A sitting panel has not been appointed at this stage and no decision has been made as to whether to conduct proceedings," Takeovers Panel director Allan Bulman said. "If we decide to take a look at something, our average time is about two weeks,'' he added.

If the panel supports Origin's application, or even just decides to take a good look at it, it will give the company more time to prepare its defence, which will rely on results of an auction of its Queensland coal seam methane assets. Origin has to put out a target's statement two weeks after BG dispatches its bidder's statement to Origin shareholders.

An Origin spokeswoman declined to comment on the application or the state of the CSM auction. BG said it would co-operate with the panel and, in accordance with panel policy would not be commenting publicly on issues before the panel.