In a release to the market last week, Pacific Hydro confirmed several groups had lodged an “expression of interest” in the company.

These inquiries, it stressed, were not tantamount to takeover bids.

“Reports of a takeover bid are purely speculative as the Strategic Review is at an early stage and has not progressed to a point where any party has expressed a view, or been invited by Pacific Hydro to express a view or value,” Pacific Hydro said.

Since beginning its strategic review, headed by Carnegie, Wylie and Co, and Freehills in October, the company’s stock has swelled nearly 20%, closing at an historic high of $4.05 on Christmas Eve.

The nations largest energy retailer, Australian Gas Light, Hong Kong’s CLP Holdings and Macquarie Bank have all been included in market speculation over prospective buyers.

Yahoo.com said the total number of bidders could be as high as 15, while Bloomberg reported last month that Japanese utilities were also sniffing around Pacific Hydro’s assets seeking greater access to carbon credits which will be tradable when the Kyoto Protocol comes into effect next year.

The treaty sets emission reduction targets for 124 countries, granting governments a fixed quota of carbon dioxide emissions per year. Countries and companies must purchase carbon credits if they wish to exceed their quota.

By 2010, Pacific Hydro will be producing more than three million tones of carbon allowances, currently valued at nearly $12 a tonne.

Despite Australia’s refusal to ratify the treaty, a report by market analyst Fat Prophets said carbon credit trading could add nearly EUR 10 million to Pacific Hydro’s earnings per year.

Managing director Jeff Harding said the level of interest in the company reflected the strength of its operations.

“It reflects out position as the largest independent publically listed renewable generation company globally, the strength of the company’s operating assets and the large hydro and wind development portfolio in Australia and overseas,” he said.