“On June 28 2005, IFM Renewable Energy Pty Ltd's interest in Pacific Hydro passed 50%,” the Pacific Hydro chairman Bernard Wheelahan and IFM chairman Gary Weaven said in a letter to shareholders.

“As at [June 30] IFM's interest in Pacific Hydro is 52.3%."

On June 20 2005, Acciona announced it would accept IFM's takeover offer for all of its shares in Pacific Hydro, which comprise about 16% of Pacific Hydro stock.

“IFM anticipates receiving Acciona's acceptance shortly,” Wheelahan and Weaven wrote.

“With this acceptance, IFM's interest in Pacific Hydro will be in excess of 68%.

“IFM’s offer is scheduled to close at 5.00pm on 8 July 2005 (Melbourne time). IFM and the Pacific Hydro independent directors recommend that you accept IFM’s offer of $5.00 per Pacific Hydro share as soon as possible.”

IFM has committed to pay shareholders who accept its offer within five business days of their acceptance being processed.

If IFM acquires a relevant interest in at least 90% of the issued Pacific Hydro shares, it intends to proceed with compulsory acquisition.

“Shareholders should note that if IFM has a relevant interest in less than 90% when the takeover bid closes, the Pacific Hydro share price may fall below $5.00,” the letter stated.