Fair price for TrustPower increases

That recommendation means that the upper range of AGL's offer - which has been set between $3.30 and $3.60 - fits the bill.

However the price range is higher than that outlined in a report released just weeks ago by PricewaterhouseCoopers, which stated a fair price for TrustPower equities was between $3.23 to $3.62.

That report had been commissioned in response to restricted transfer notices from Alliant International, Infratil (NZSE: IFT) and Tauranga Energy Consumer Trust, but each of those parties only wanted to increase their stake, while AGL wants to take 100% of the company.

Often when a potential buyer wants to take over another company it is expected to pay a higher premium for total control than if it was just raising its shareholding.

In a letter to TrustPower shareholders the company's chairman, Harold Titter, says he recommends shareholders read the appraisal report and consult a professional adviser before deciding to accept or reject any offer.

TrustPower shares closed Wednesday unchanged at $3.50.

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