Babcock & Brown has replaced Macquarie Bank as the front runner in the bid for West Australian utility Alinta, with the company board recommending that its shareholders accept a $15 offer.
The share offer was made on Friday by the Babcock & Brown and Singapore Power Consortium.
The acquisition has been valued by the Alinta board at $15 per Alinta share.
Over the last six days, the board received offers from two consortia, according to Alinta chair John Akehurst.
There has been a thorough and rigorous evaluation in which due regard has been given to the value of the considerations offered and to the conditions and risks associated with the proposals, Akehurst said.
"The board has concluded that the Babcock & Brown consortium has made the superior proposal, following an open and competitive tender process," he said.
In January Macquarie Bank was said to have backed a buyout of Alinta.
Following the announcement Alinta shares were trading at $14.44 on Friday afternoon.
