March 2 (Reuters) - Caltex Australia Ltd CTX.AX :
* UPDATE ON ACQUISITION PROPOSAL FROM EG GROUP
* BOARD CONCLUDED THAT EG PROPOSAL UNDERVALUES CO & DOES NOT REPRESENT COMPELLING VALUE FOR CALTEX'S SHAREHOLDERS
* CALTEX BOARD CONSIDERS THAT IT IS IN INTERESTS OF CALTEX SHAREHOLDERS TO ENGAGE FURTHER WITH EG
* CALTEX BOARD HAS OBTAINED ADVICE FROM ITS FINANCIAL AND LEGAL ADVISERS AND HAS ALSO CONSIDERED FEEDBACK FROM CALTEX SHAREHOLDERS
* CALTEX HAS OFFERED TO ENGAGE FURTHER WITH EG IN RELATION TO A POTENTIAL TRANSACTION
* THERE'S NO CERTAINTY THAT DISCUSSIONS BETWEEN CALTEX AND EG WILL RESULT IN EG IMPROVING ITS PROPOSAL OR IN EG MAKING BINDING PROPOSAL