SYDNEY - Gambling conglomerate Genting Berhad today said it has lodged a bid to buy Victoria state's largest power generator, raising the stakes against a local consortium battling regulators for the right to buy Loy Yang.

Australian Gas Light Co (AGL) said it would take its bid for a stake in the 2,000 megawatt power company to the Federal Court after the competition watchdog rejected its acquisition proposal last week.

Loy Yang's owners, Horizon Energy Investment Management, CMS Energy and NRG Energy on Monday extended the deadline for exclusive talks on the sale with the AGL-led consortium.

Genting said its letter of offer was lodged with Loy Yang last week after receiving board approval in Kuala Lumpur.

The bid will be fully financed by Genting.

Minimal risk

Loy Yang's 25 per cent Australian partner Horizon Energy Investment Group said the plant would be sold by the end of the year and it considered the AGL-consortium the frontrunner.

"We've entered into an exclusivity with (the AGL-led consortium) until Dec 19 and we wouldn't have done that if we didn't believe they could complete," said Horizon managing director Ian Kaye.

He said the Loy Yang partners would assist AGL in its Federal Court action.

United States-based utilities CMS Energy Corp owns a 49.6 percent stake in Loy Yang and NRG Energy has 25.4 percent.

TS Ong, Chief Executive of Genting's industrial and energy divisions, said the company could fulfill the acquisition process with minimal risk to the ongoing operations at Loy Yang.

Genting's generation activities include a 60 percent interest in the 720 megawatt gas-fired combined cycle Kuala Langat Power Plant in Malaysia.

It also has interests in hospitality and gaming, property and packaging. - AFP