Unnamed sources quoted in a Chinese newspaper said Citic was among those interested in Origin's (org.ASX:Quote,News) gas reserves and tipped the proposed deal to be worth between $US6 billion and $US10 billion.
However, sources later denied Citic was eyeing Origin's resources.
Shares in Origin climbed 16 to an intra-day high of $16.18 yesterday, while Citic's shares fell on the Hong Kong Stock Exchange on concerns the rumoured deal would stretch the company's balance sheet.
Should such an offer materialise it would trump UK gas and oil producer BG Group's hostile $13.1 billion takeover bid for Origin, which was formally rejected by Origin's board on the basis it undervalued the company.
Origin recently invited third parties to lodge expressions of interest to help develop -- and set a pricing benchmark for -- its coal seam gas resources.
A shortlist of candidates is expected to be revealed by September.
Citic, which is controlled by China's state-owned Citic Group, recently increased its stake in Macarthur Coal to 20.39 per cent.
Meanwhile, BG yesterday posted a 58.6 per cent rise in net profit for the second quarter of 2008
Origin shares closed up 11 at $16.13.
AGL invests $37m in coal seam exploration
Macarthur bumps up profit guidance
