Acciona's offer of $4.50 a share has a 90% acceptance condition. But the Development Australia Fund, which holds 31.7% of Pacific Hydro, has said it is not interested in selling its stake, despite the two directors it appointed to the Pac Hydro having approved the bid.
Development Australia Fund is part of the Industry Fund Services (IFS) group, a diversified financial services organisation owned by a range of superannuation funds with about $7 billion under management. It is believed that Pacific Hydro is the fund's only listed investment.
IFS executive chair Garry Weaven said Development Australia Fund had a strong commitment to investing in renewable energy and Pacific Hydro was a significant part of its portfolio.
Pacific Hydro managing director, Jeff Harding, said he was surprised by IFS's stance. He said there was little chance another takeover offer would emerge, but he thought the bid could be modified from 90% to a simple majority if the investment fund was unwilling to modify its position.
In turn Weaven has said IFS was in preliminary talks with Acciona on a commercial alliance for investment in green energy projects.
Pacific Hydro shares closed 8c higher at $4.48.