AGL open to higher takeover bid but says Cannon-Brookes plan to close coal by 2030 is unrealistic

AGL Energy says a premium of at least 30% on its share price will be needed for an extraordinary takeover bid by the tech billionaire Mike Cannon-Brookes and Canadian investment firm Brookfield to potentially succeed.

The comments suggest AGL could be open to selling to the consortium which on Saturday made an offer that valued the company, including debt, at nearly $8bn.

The consortium bid was lodged in part to prevent a demerger planned to take effect from 30 June, under which AGL would be split in two, creating a new entity Accel Energy that would include the coal-fired power station assets.

The bid is being closely watched in Canberra. While Liberal moderates have welcomed the proposal, the prime minister, Scott Morrison, appeared lukewarm, arguing the government wanted to see coal generators run for the duration of their scheduled operating life. Given the initial pushback by AGL, the government does not expect to be making regulatory decisions this side of the federal election.

The federal Labor leader, Anthony Albanese, revealed on Tuesday that Cannon-Brookes had spoken to him about the proposal over the weekend. Albanese said the government seemed to be often out of the loop when it came to significant developments in the energy market, citing the energy minister, Angus Taylor, not learning about Origin Energy bringing forward the closure of the Eraring coal-fired power plant until the night before the announcement.