Pacific Hydro’s independent directors have now retracted their endorsement of the Acciona bid to recommend the higher IFM offer.

"IFM has been a strong supporter of Pacific Hydro for almost nine years and is in a good position to recognise the inherent value of Pacific Hydro," Pacific Hydro chairman Bernard Wheelahan said.

IFM, which has $6 billion in workers' funds under management, already holds 32% of Pacific Hydro.

After discussions with Acciona on arrangments to give IFM continued exposure to Pac Hydro assets broke down, the super fund group said it would turn down a A$4.50-a-share offer from Acciona for its stake in Pacific Hydro and counter with a $4.60 bid.

Acciona has said it was assessing IFM's announcement. But it is considered unlikely to counter IFM's $4.60-a-share offer.

IFM chairman Gary Weaven has said the super group has the capital and the patience to help Pacific Hydro to realise its growth potential, and to accelerate that growth. IFM said the day-to-day running of Pacific Hydro would not change under its ownership.

"This bid confirms IFM's commitment to Pacific Hydro and to worldwide sustainable green energy project developments," Weaven said.

Pacific Hydro has 227 megawatts of wind-power and hydroelectricity assets in Australia, Fiji, the Philippines and Chile, and aims to lift its capacity to 1000MW within four years.