AAP

BG Group, the UK's third largest natural gas producer, says discussions with Origin Energy Ltd over its $12.9 billion bid for the power retailer are ongoing but inconclusive.

The UK-based utility said "discussions have been held between senior representatives of Origin and BG Group" but those talks were "ongoing but currently inconclusive".

BG Group approached Origin, Australia's second largest power retailer, last week with a proposal to acquire each share in the company for $14.70 in cash.

The UK group said that the proposal was "explicitly made on the basis that it was subject to contract, confidential and to be implemented co-operatively and expeditiously by way of scheme of arrangement", after a request for more information from the Australian Securities Investment Commission.

BG Group said the proposal noted the company had already secured the necessary in-principle funding commitments from a syndicate of banks.

The company said that it has since received signed commitments from these banks, rumoured to include BNP Paribas, HSBC, Royal Bank of Scotland and Santander.

Origin provides gas and electricity to more than three million homes and businesses across Australia, New Zealand and the Pacific.

Credit Suisse said in a note to clients that BG Group would unlikely find resistance to its bid from either the Foreign Investment Review Board (FIRB) or the Australian Competition and Consumer commission (ACCC).

"In our view the likelihood of rejection is low," Credit Suisse said.

BG Group said it had received a ruling from the New Zealand panel concerning Contact Energy Ltd, a subsidiary of Origin Energy, which will be the subject of a separate announcement to be agreed with NZ Panel.

Origin shares gained 32 cents, or 2.25 per cent, to close at $14.57.