Origin in £4.5bn Conoco tie-up

Aussie gas producer Origin has tossed the ball back into BG Group's court by agreeing with ConocoPhillips to an $8 billion (£4.51 billion) deal to develop gas resources for export.

ConocoPhillips will initially contribute
$5 billion to take a 50% stake in the venture, which will convert coal-seam gas into liquefied natural gas for export to Asia.

That potentially trumps BG Group's A$13.7 billion (£6.41 billion) hostile bid for the company that Origin has rejected on the grounds it undervalues the coal seam resource to be developed with Conoco.

Managing director Grant King has been under pressure to come up with a better deal after a change of heart over the BG deal that he appeared to favour.

He said the deal with Conoco more than justifies Origin rejecting BG's bid and that BG's valuation of Origin is "a long way away".