Why did Origin Energy (ORG) shares crash today?
ORG –7.82%: Hit today following recent developments around government intervention in gas and coal markets. The proposal around price caps etc is creating concern around the $9 per share takeover of ORG that is currently undergoing due diligence. The concern is that price caps on domestic gas and coal next year, and then controlled prices for gas into the future would hurt ORG’s energy supply business and its Australia Pacific LNG venture, and in that sort of environment, the $9 bid price seems overly optimistic. Clearly, these changes to pricing will have knock effects and ORG is front and center.
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