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Babcock Consortium in Talks on Revised Alinta Bid

Babcock & Brown consortium members said they were in talks with Australian energy infrastructure group Alinta on a possible revised bid after Macquarie Bank launched a
rival offer.

Shares in Babcock & Brown Wind Partners, Babcock & Brown Infrastructure Group and Babcock & Brown Power were put on a trading halt pending a further announcement on completion of the discussions.

Macquarie on Monday raised its offer for Alinta to at least A$7.9 billion (US$6.5 billion), potentially scuttling rival Babcock & Brown's board-recommended offer.

Babcock's original offer included A$8.50 in cash, and shares in Babcock's infrastructure, power and wind funds, A$0.40 franking credits, as well as 1.51 Australia Pipeline Trust units for every five Alinta shares.

Babcock said on Monday the value of its offer had increased to A$15.99 based on Friday's closing prices, largely because of a rise in the value of the Babcock funds.

To sweeten the deal, Babcock said last month shareholders with 1,000 Alinta shares or less could receive all cash. Singapore Power owns 51% of Australia's SP Ausnet, an energy network operator.

Macquarie said on Monday its revised takeover proposal to Alinta gives shareholders three options: all cash, all shares or a combination.

A source familiar with the situation told Reuters earlier on Tuesday that some options in Macquarie's revised bid amounted to more than A$16 a share.