Alinta $11bn merger plan revived after buying 10% of AGL

Perth energy company Alinta Ltd has revived its audacious plan to create Australia's biggest energy player with an $11 billion proposal to merge its business with Australian Gas Light Company Ltd.

Alinta shares with put in a trading halt late today as it emerged that Alinta has an agreement to acquire a 10 per cent stake in AGL for as much as $1 billion from several institutional investors.

One of Australia's most aggressive and active corporate players, Alinta confirmed with WA Business News the plan was seek a merger, ahead of AGL's current demerger plans.

Furthermore, a merged AGL/Alinta would then seek its own demerger proposal to create Australia's biggest utility asset managment company.

Alinta is currently valued at about $2.9 billion by the market, a figure dwarfed by AGL's $8.3 billion.

Advised by Macquarie, Alinta previously sought to buy the institutional shares but was rebuffed a few weeks ago. Subsequent news of the AGL demerger plan brought an invitation from the investors to return to the table for negotiations.