AustralianSuper lashes ‘despicable’ behaviour in Origin Energy tussle
The CEO of Australia’s biggest super fund has called out behind-the-scenes advisers over ‘fevered’ pressure in the Origin Energy saga.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
AustralianSuper has lashed the toxic and “despicable” behaviour behind the scenes in the $20bn tussle for energy giant Origin, with chief executive Paul Schroder criticising some participants for “pulling whatever lever they could” to get a deal over the line.
Three months after shareholders including AustralianSuper rejected asset manager Brookfield’s offer for Origin, Mr Schroder described some of the exchanges in the lengthy fight as “fevered”.
“We had some really good engagement with (Origin). But I do want to call out some behaviour which was despicable,” Mr Schroder said.
“For people to say that funds who have one view or another were either ‘wreckers’ of the environment or not, or some other spurious kinds of things that were talked about,” Mr Schroder said.
“We’re investors, we think it’s a great company with great assets and good management. We think it’s worth more. That’s it.”
AustralianSuper, the nation’s biggest super fund with $300bn in assets under management, is the largest shareholder in Origin, with a 17 per cent stake.
Speaking to The Australian on the sidelines of a superannuation conference, Mr Schroder clarified that he wasn’t talking about Origin or private equity giant Brookfield when he made the comments but rather others “acting as advisers”.
“In the background, legal threats were being made, all sorts of pressure was being brought to bear. I reckon we’re better than that. I think we saw lots of behaviour that is not becoming of grown-ups in a mature democracy,” he said.
“There was a great deal of pressure put on a great many people, which was unnecessary.
“There was a host of people acting as advisers, and participants around the transaction but not directly involved in the transaction … it was reported back to me that there were a lot of people putting a lot of pressure on and it was really very ordinary (behaviour),” Mr Schroder said.
“There were a lot of people who stood to benefit (from the deal going ahead) and so they were pulling whatever levers they could.”
Mr Schroder repeated his view that Origin would play a significant role in the energy transition as he added his take on Brookfield’s $20bn takeover bid, which collapsed in December.
“I think we (AustralianSuper) and Brookfield think exactly the same about how much it’s worth, and they just had a view about how much they could get it for, basically.
“We have a very strong conviction about the future of that company.”
More Coverage
Originally published as AustralianSuper lashes ‘despicable’ behaviour in Origin Energy tussle
Qld coal baron slams Labor royalties regime
A Queensland coal baron has taken aim at the former Labor government, saying a lifesaving $70m in equity he’s just raised is about equal to the increased coal royalties introduced by that administration.
Who’s in (and out) of Qantas’s executive lounge
While handing free upgrades to politicians, Qantas is booting out executives from its Chairman’s Lounge for failing to spend more than $1m a year with the airline.
Macquarie to make push on active ETFs
Macquarie is evolving its public markets businesses by making a bigger push into active exchange-traded funds, as it grapples with unfavourable foreign exchange movements and fund outflows.
What makes a good leader great?
Steve Vamos, recently retired from Xero, has learnt about leadership from some of the world’s best business chiefs, including Apple co-founder Steve Jobs.
How a coal company burnt Origin and fuelled an energy crisis
In 2022, Centennial Coal sold shipments of coal to international buyers rather than meeting supply agreements for the Eraring power station, triggering upheaval in Australia’s energy market.
‘Cross shopping’ a boon for indies
Metcash boss Doug Jones believes independent chains are winning from the rise of ‘cross shopping’ by budget-savvy consumers, who are visiting different retailers to fill their shopping baskets.