Brookfield Corporation (TSX:BN) and EIG Global Energy Partners are understood to be in the process of launching a hostile takeover bid for Origin Energy Limited (ASX:ORG) by Christmas. Sources have told DataRoom that the offer will be at a lower price than the $9.53-a-share offer currently on the table through a scheme of arrangement structure, where shareholders vote on the transaction for it to gain approval. Under the takeover bid structure, the suitors buy shares directly on the market.

It is understood the takeover bid will be put forward by both Brookfield and EIG within the coming weeks, subject to a minimum acceptance of 50.1%. It means the race will be on for the two bidders to amass shares after AustralianSuper recently lifted its interest to just under 15%, from 13.67%, outlaying up to $182 million to buy shares through Macquarie Capital. The bidders were recently released from their standstill agreement, which means they can now buy at least 5% of the company if they also launch a takeover offer.

DataRoom revealed on October 19 that a higher proposal was on its way for the nation's energy retailer from the bidders following an earnings upgrade. As reported by this column on Thursday last week, AustralianSuper had been offered the opportunity to be part of EIG and Brookfield's deal, but declined the chance. Part of the problem is that, for AustralianSuper's equities team, few compelling opportunities exist where it can reinvest the money on the listed market in companies of the same calibre as Origin when it comes to getting exposure to energy and infrastructure and achieve the same returns.

Also, the game plan for Origin and EIG was always for EIG to take Origin's gas business while Brookfield would own the energy retailer. Originally, the plan of EIG and Brookfield was to try harder to convince AustralianSuper to take part in its deal. But laws surrounding truth in takeovers removed that option when the shareholder made a statement about its intentions, saying the offer undervalued the company, and it would vote against the deal on November 23.

Brookfield and EIG called their buyout offer "best and final".