(Reuters) - Energy stocks drove Australian shares lower on Wednesday, 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> slipped 0.2 percent or 9.4 points to 6032.5 at the close of trade. 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.
The decision sent the Adelaide-based company's shares tumbling 8.4 percent on Wednesday, its biggest one day fall in nearly one and a half years.
The news, paired with a fall in oil prices on Wednesday on fears of more OPEC supply, led to weakness in the wider sector, with the energy index <.AXEJ> slumping 2.3 percent to a two-week low.
Healthcare stocks were also under pressure, with CSL Ltd <CSL.AX> slipping 1.1 percent, while Healthscope <HSO.AX> slid 2.1 percent.
Meanwhile, financials <.AXFJ> registered a fifth straight day of losses, with Commonwealth Bank of Australia <CBA.AX> dipping 0.6 percent, while AMP Ltd <AMP.AX> dropped 2.2 percent.
The fall was capped by a rise in real estate stocks, with Goodman Group Pty Ltd <GMG.AX> jumping 2.4 percent to a near ten-year high.
Across the Tasman sea, New Zealand's benchmark S&P/NZX 50 index <.NZ50> fell 0.7 percent or 60.09 points to finish the session at 8,553.23.
Consumer staples led the declines, with A2 Milk Company Ltd <ATM.NZ> diving 4.4 percent, while Fonterra <FSF.NZ> slumped 6.8 percent to a near two-year low.
(Reporting by Aditya Soni in Bengaluru; Editing by K Coghill)
