Origin set to accept improved BG bid

SYDNEY (Reuters) - Origin Energy Ltd (ORG.AX), an Australian power producer and retailer, is poised to accept an improved bid from Britain's BG Group (BG.L), worth over A$15 a share, the Australian newspaper reported on Thursday.

The paper quoted industry sources as saying an announcement on the deal was expected on Thursday. At A$15, Origin would be valued at about A$13.2 billion (6.4 billion pounds), based on its shares on issue.

Origin boss Grant King won a higher price from BG after arguing that BG's original proposal of A$14.70 a share undervalued Origin's coal seam gas reserves.

The Australian had reported on Wednesday that BG had upped its bid to over A$15.

A report in the Australian Financial Review paper on Thursday said Origin was edging closer to accepting an improved offer from BG, "revolving around a price of between A$15 and A$16 a share." It did not cite any sources.

BG, one of the world's biggest shippers of liquefied natural gas, wants Origin's vast coal seam gas resources in Australia to feed its proposed LNG plant in the northern state of Queensland.

(Reporting by James Thornhill)