Babcock offers some Alinta shareholders cash option

SYDNEY (Reuters) - A consortium led by investment bank Babcock & Brown (BNB.AX: Quote, Profile, Research, Stock Buzz) said on Monday some shareholders in takeover target Alinta Ltd. AAN.AX would be able to choose an all-cash option under enhanced terms for its A$7.4 billion ($6.2 billion) offer.

Babcock's cash and stock bid last month for Alinta, Australia's largest energy infrastructure group, beat a higher offer from a Macquarie Bank Ltd. MBL.AX consortium which was rejected by Alinta's board.

Local newspapers said on Monday that the Macquarie consortium was looking at coming back with an improved bid.

Babcock, in partnership with state-owned utility Singapore Power, said in a statement it would offer shareholders with 1,000 Alinta shares or less the opportunity to receive all cash.

Those shareholders make up about two-thirds of the Alinta register, it said.

Shareholders would also have the option to receive 100 percent shares, Babcock said.

Babcock's bid was valued at about A$15 a share. Macquarie said last month it had offered A$15.45 a share.

Babcock previously offered Alinta shareholders A$8.50 in cash per share as well as 7.83 shares of Babcock & Brown Infrastructure (BBI.AX: Quote, Profile, Research, Stock Buzz), 1.30 shares of Babcock & Brown Wind BBW.AX, 3.31 shares of Babcock & Brown Power (BBP.AX: Quote, Profile, Research, Stock Buzz) and 1.51 Australia Pipeline Trust (APA.AX> units for every 5 Alinta shares.

The banks want Alinta's assets, which include power stations, gas transmission pipelines and a lucrative asset management division, for their scarcity value following a recent bout of consolidation.