Mr Pahor and ABN Amro Capital flagged to Energy Development's board a conditional proposal to buy the company for $3 a share - compared with the pre-offer trading price of about $2.20 a share, which represents a 36% premium.

News of the potential proposal for a $345 million offer yesterday sent Energy Development shares flying higher to $2.80.

In response, directors at Energy Development said they did not support the proposal. "Given its highly conditional nature, directors are not supportive of the proposition at this time," the company said in a statement to the Australian Stock Exchange.

Mr Pahor left the renewable energy group last year after 13 years, but still owns just more than 5% of its stock.