* Aussie shares on track for fifth session of loss
* Santos biggest drag on the benchmark
* Fonterra fall leads NZ lower
By Aditya Soni
May 23 (Reuters) - Australian shares dipped on Wednesday, with energy stocks leading declines after oil and gas producer Santos rejected U.S.-based firm Harbour Energy's $10.8 billion takeover offer.
The S&P/ASX 200 index .AXJO fell 0.2 percent or 12.50 points to 6,029.40 by 0245 GMT. The benchmark declined 0.7 percent on Tuesday.
Santos STO.AX on Tuesday ended talks with Harbour Energy and rebuffed its bid saying it undervalued the firm in the context of the recent surge in oil prices. decision shocked analysts and sent the Adelaide-based company's shares tumbling 9.2 percent on Wednesday, its biggest intraday percentage fall in nearly one and a half years.
The news, coupled with lower oil prices on Wednesday, also led to weakness in the wider sector, with the energy index .AXEJ slumping 2.8 percent to a two-week low.
However, Dale Raynes, Associate Director at CPS Capital, said the decline isn't surprising given energy stocks' recent strong run.
Oil prices edged lower on Wednesday as the market took a breather on expectations OPEC may raise supplies as early as June. O/R
Woodside Petroleum Ltd WPL.AX fell 1.8 percent to its lowest since May 15, while Origin Energy Ltd ORG.AX slid 2.3 percent.
Healthcare stocks were also lower, hurt by an extended fall in biotherapeutics firm CSL Ltd CSL.AX , which dipped about 1.1 percent, and hospital group Healthscope HSO.AX which fell 2.5 percent.
Healthscope rejected two takeover approaches on Tuesday and said it will instead explore selling its properties. scandal-hit financials sector .AXFJ was on track for a fifth straight session of decline, having lost nearly a percent since the third round of Australia's powerful inquiry into the industry began on Monday.
Top lender Commonwealth Bank of Australia (CBA) CBA.AX slipped 0.5 percent, while National Australia Bank Ltd NAB.AX fell 0.6 percent to its lowest in more than one and a half year.
CBA is selling its 37.5 percent stake in a Chinese life insurer to Japan's Mitsui Sumitomo Insurance Co for 3.2 billion yuan ($502.67 million), in a bid to simplify its portfolio and focus on its core banking business. global miner Rio Tinto (LON:RIO) Ltd RIO.AX rose 0.4 percent. Rio confirmed on Wednesday it was in discussions to sell its interest in the world's second largest copper mine to Indonesia's Inalum for $3.5 billion. the Tasman sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 slumped 0.4 percent or 36.53 points to 8,576.79.
Consumer staples accounted for most of the losses, with Fonterra FSF.NZ slumping 6.8 percent to a near two-year low.
Fonterra, the world's biggest dairy exporter, cut its full-year profit and dividend forecasts as the company takes longer to pass on higher milk costs to its customers.