China Gas (0384.HKG) holdings has rejected an unsolicited US$2.2 billion cash bid from China Petroleum & Chemical (Sinopec; SNP.NYSE, 600028.SHA, 0386.HKG) and ENN Energy (2688.HKG), saying that the offer did not reflect the true value of the company, Reuters reported. Analysts said that Sinopec might need to raise its offer, but this appears unlikely as China Gas shares stayed just below the bid price on Wednesday. If the deal does go through, ENN and China Gas would become the largest gas utility in China, with sales of more than 10 billion cubic meters per year. The offer may face regulatory concerns on anti-trust grounds, but a Credit Suisse memo said that risk is low, as the company would only account for 8% of total gas sales. The offer of HK$3.50 per share was a 25% premium on China Gas’s previous close price, but well below a public share sale last October at HK$4.31.