AGL Energy Limited (ASX:AGK) has appointed Deutsche Bank and Bank of America Merrill Lynch (BAML) to help fund its Macquarie Generation bid, with the two banks and Citigroup likely to handle a large rights issue. AGL is one of three bidders expected to lodge a binding offer for Macquarie Generation on February 5, 2014. AGL has been working on its bid with Citi and Lazard for the past 12-months, but sources said it had recently called in Deutsche and BAML to ensure more sell-side support for the deal and likely share offer.

Mike Baird, Treasurer of NSW, said he would consider offers for one or both of MacGen's power plants, and wants a sale around the $2 billion book value. Goldman Sachs is running the auction.