A consortium of private equity companies comprising Bain Capital Partners, Blackstone Capital Partners, Pacific Equity Partners and Morgan Stanley Principal Investments made a bid of $32 a share for the world’s largest explosives manufacturer.

Private Equity Partners confirmed Clayton Utz and Morgan Stanley had advised them on the bid.

The Australian-founded Orica revealed the bid in a statement to the Australian Securities Exchange which said that its board had “carefully considered the consortium’s proposal and believes that it significantly undervalues Orica and its growth prospects”.

The firm said its shareholder returns over the past five years prior to 2006 had increased “more than 500 per cent”, and outperformed the S&P/ASX 200 accumulation index.

Chris Hanson, general counsel for Orica, said the lead partner from Mallesons’ advising Orica was Stephen Minns.

Chairman of Orica, Don Mercer said over the past five years, “Orica has been through a substantial portfolio transition, including the recent Dyno Nobel and Minova acquisitions, and the divestment of various non-core businesses such as interests in Incitec Pivot, Qenos and Adhesives & Resins”.

He said the integration of these acquisitions had progressed well, with “synergies flowing through in line with or ahead of plan.

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“Looking forward, Orica remains confident in guidance previously provided to the market in relation to its 2007 financial results.”