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7:30 a.m.

Brookfield’s $12.8-billion Origin bid rejected by investors

Origin Energy Ltd. rejected a A$19.1 billion (US$12.8 billion) Brookfield Asset Management Ltd.-led takeover, after the fund’s yearlong pursuit of a utility that’s vital to Australia’s energy transition.

About 69 per cent of ballots cast by investors were in support of the deal, below the required threshold of three-quarters of the votes, Origin said Dec. 4 in a statement, following a shareholder meeting.

Origin’s largest investor AustralianSuper, which holds about 17 per cent of the company, had opposed the offer as too low, effectively blocking the prospects for an acquisition. The intervention by Australia’s largest pension fund showcased an increasingly assertive approach from managers of the country’s A$3.5-trillion retirement savings pool.

Brookfield and EIG Global Energy Partners, which made a first offer in November last year, revised their proposal last month and the deal value was A$9.39 a share, based on Wednesday’s exchange rate, Origin said last week.

Origin’s board had supported the proposal, though last week rebuffed a suggested alternative transaction under which Brookfield would pay A$12.3 billion for the company’s energy generation and retailing business in the event of an unsuccessful takeover vote.

“Brookfield will evaluate its next steps, if any, with respect to Origin,” the Canada-based investment fund said in a statement. Executives have flagged Brookfield, which planned to acquire Origin using its Global Transition Fund, won’t return with any immediate new offer and intends to review the implications from new Australian energy policy.

Harry Brumpton and David Stringer, Bloomberg



Read the full story here.

Stock markets before the opening bell

Stocks and bonds retreated as traders pause after November’s blockbuster rally and debate the case for interest rate cuts. Bitcoin surged past US$41,000, while gold briefly touched an all time high.

The 10-year Treasury yield added five basis points to 4.25 per cent while United States futures posted modest losses.

The S&P/TSX composite index closed up 216.58 points at 20,452.87 on Friday.

Bloomberg

What to watch today

The Institute for Peace & Diplomacy (IPD) and the Canada West Foundation (CWF) co-host the third annual Indo-Pacific Strategy Forum (IPSF 2023) in Ottawa.

Michael Medline, chief executive of Empire Co. Ltd., which owns Sobeys, Inc., will appear before the House of Commons agriculture committee studying efforts to stabilize the price of groceries.

Federal Environment Minister Steven Guilbeault will make an announcement regarding Canada’s next steps to address methane emissions from the oil and gas sector while he is at the COP28 summit in Dubai.

United States factory orders for October will be out at 10 a.m. ET.

Why some newcomers are leaving Canada What stocks will do well in the new year

Need a refresher on Friday’s’s top headlines? Get caught up here.

Additional reporting by The Canadian Press, Associated Press and Bloomberg

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