Queensland Gas Co. Ltd., Brisbane, Australia, (Australia: QGC) has rejected the offer from Santos CSG Pty Ltd., a subsidiary of Santos Ltd., Adelaide, Australia, (Nasdaq: STOSY, Australia: STO) to acquire the company for A$1.26 per share in a deal valued at US$451.5 million (A$606 million). Queensland chairman Bob Bryan rejected the bid as "opportunistic and patently inadequate" with the offer price being a premium of just 15% of the Queensland share price, less than the 24% Santos had announced. Santos challenged the announcement and encouraged the Queensland Gas Co. board to provide relevant and credible valuation benchmarks to support Queensland's claims that Santos' offer price of A$1.26 undervalues the company.
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