NZ Takeovers Panel gives BG leeway on Contact bid

WELLINGTON, May 12 (Reuters) - The New Zealand Takeovers Panel said on Monday it would grant BG Group (BG.L: Quote, Profile, Research) a one-month exemption on launching a bid for Contact Energy Ltd (CEN.NZ: Quote, Profile, Research), should its bid for Contact's owner Origin Energy Ltd (ORG.AX: Quote, Profile, Research) succeed.

Britain's BG said on April 30 it had approached Australia's Origin with a proposal for a A$12.9 billion ($12.2 billion) takeover offer.

Origin owns 51 percent of Contact, New Zealand's largest listed power company, and under New Zealand takeover law BG would be required to launch a takeover bid for all of Contact's shares should its Origin bid be successful.

The Panel said BG had applied for an exemption from the Takeovers Code, with a one-month delay granted from the date of the Origin offer becoming unconditional until BG is required to launch a bid for Contact.

Analysts have said BG has three options in regards to Contact: sell down the stake, launch a bid to mop up the remaining 49 percent, or launch a low-premium bid with little chance of success, to retain the 51 percent holding.

Shares in Contact, New Zealand's third-largest stock, closed on Friday at NZ$9.02, giving it a market value of NZ$5.2 billion ($4 billion).

The Panel said it was a condition of the exemption that if the Origin bid is successful, any follow-on bid for Contact would have to be launched at a value which reflects the price paid for Contact as part of the offer for Origin.

The Panel said BG's $14.70 offer price for Origin shares did not include any premium to the market price of Contact's shares.

On Friday, BG said it was in discussions with Origin, but so far nothing conclusive had emerged. Contact is a retailer and generator of electricity, and competes with Trustpower (TPW.NZ: Quote, Profile, Research) and state-owned firms Meridian, Genesis and Mighty River. (NZ$1=$1.30 $1=A$1.06) (Reporting by Adrian Bathgate; Editing by James Thornhill)