Aquila is struggling under a mountain of debt after the meltdown in the US utilities sector and is looking to strengthen its balance sheet through a $US1 billion global asset sale. Aquila has $4 billion worth of assets in Australia, including stakes in United Energy, Multinet and AlintaGas.

The challenge facing Aquila in offloading its Australian assets is the complicated crossholdings - including two listed companies, a private company and three unlisted partnerships - and creating shareholder value without prejudicing the interests of minority shareholders.

It is understood that all three companies will raise more debt to cancel out Aquila, whose combined stake in the companies is said to be worth $850 million. However, the question remains whether the three companies have the debt capacity to fully cover this amount. It's been suggested that AlintaGas may sell new shares or introduce a new strategic investor such as Wesfarmers to its share registry.

AMP Henderson, which has stakes in the three companies through two unlisted partnerships, hopes to control the assets by way of an energy fund, which will be similar to Macquarie Bank's airport and toll-road funds. The diversified regulated energy fund would be called the AMP Defender Fund.

Many commentators believe such an investment vehicle would give investors such as 'mums and dads' the benefits of high and stable yields that come from regulated monopolies such as gas and electricity networks. In addition, a diversified asset base lowers the risk profile of the trust, which would appeal to retirees.

The prospect of a change of ownership and restructure for United Energy has seen the gas and electricity distributor's share price close on Friday at $2.96, its highest price in two years.