AGL rejects higher bid from Mike Cannon-Brookes and Brookfield, potentially ending takeover push

AGL Energy has rejected a higher takeover bid from the Canadian asset manager Brookfield and the tech billionaire Mike Cannon-Brookes, potentially seeing off the unsolicited bid.

It is understood that Brookfield, which was to stump up 80% of the bid, planned to walk away from further bids if the board rejected the bid.

Grok Ventures, the family investment arm of Cannon-Brookes, was to hold the remaining 20% stake and it too was expected to give up its push given the rejection.

Cannon-Brookes confirmed as much on social media on Sunday evening.

The initial audacious bid had drawn opposition from the AGL board, which claimed it materially undervalued the company. The reasons for the second rejection will be made public before the ASX opens on Monday morning.

All three companies were approached for comment.