Fortescue case highlights a curious scarcity
Analysis | Given the centrality of continuous disclosure to the operation of the capital markets, it is curious there have been so few court decisions on the scope of directors’ duty to disclose.
Focused on iron, but keen on Mongolian coal
Fortescue Metals Group says it has expressed interest in acquiring the Tavan Tolgoi coal deposit in Mongolia, but insists it remains focused on iron ore.
BHP’s $80bn plans baffle analysts
BHP Billiton’s plan to spend $US80 billion on growth projects over the next five years has certainly captured the market’s attention.
Tassal suffers long wait for a bite
Four months after it put itself up for auction, Australia’s biggest salmon producer, Tassal, is yet to receive a formal offer for a controlling stake in the company.
Luxury group boss steps in at Gucci
The French fashion and retailing magnate François-Henri Pinault surprised the luxury world , saying he would personally take charge of the Gucci Group as he reorganized its parent company, PPR.
FIRB clears Fletcher’s Crane takeover
Fletcher Building has received approval from the Foreign Investment Review Board for its proposed acquisition of Crane Group.
Beach edges closer to Impress
Updated | Beach Energy has secured more than 75 per cent of oil and gas operator Impress Energy with only one trading day left before the company’s 8.5¢ a share on-market takeover ends.
ING Private Equity eyes exits for profit
Listed investment company ING Private Equity Access hopes a number of exit deals some of its private equity managers have on the table will boost its future profitability, having revealed a weaker net profit of $948,000 for the half-year, down 79 per cent compared with a year ago.
Financial Review TV
Austin Legal - executive remuneration
Bob Austin, senior consultant at Minter Ellison, discusses executive remuneration with AFR Dealbook editor James Eyers.
Friday debrief: Mark Pistilli
It’s been a big week for Mark Pistilli. His Sydney law firm was one of two boutiques to announce a merger with the largest firm in Britain, Clifford Chance.
Leighton may go back to core values
Due diligence | As more cracks emerge in Leighton Holding’s facade, its new CEO may find the job of running the construction group tougher than he thought.
Confidence lurks around corner
Chanticleer | One of the busiest days this reporting season has provided more evidence that the restraint induced by the GFC affected Aussie companies exposed to discretionary spending – with one exception.
Downgrade threat isn’t the real risk
Capital markets | For the major banks, the threat of the Moody’s review lies not in the risk of downgrade, but the domino effect the announcement may set in motion.
Foreign bidders face the net benefit test
Allens Arthur Robinson partner David Maloney says Canada’s blocking of BHP Billiton’s Potash Corp bid sheds light on the bid for ASX Ltd.
Time for ASX to smell the coffee
Empire State | The New York Post put Hosni Mubarak’s head on a mummy, saying “That’s a Wrap!”. The German bid for NYSE is meeting a similar reaction.
Covered bonds call truce in deposit war
Due credit | Covered bonds help the major banks. Why do Australia’s smaller lenders support them when there’s increased hostility towards the big four?
CEOs prefer private equity masters
Private equity firms are less reliant on leverage, preferring to work with management to improve company performance.
The Friday Debrief: Ian Williams
Blake Dawson partner Ian Williams, who heads up the North-Asia practice, advises on large M&A out of Japan and Korea.
Fine line to tread on share buybacks
Capital markets | Australia’s biggest companies are abandoning thrift by increasing distributions and share buybacks.
Pay reforms raise fresh questions
Lee White | The 2009 Productivity Commission’s inquiry report into executive remuneration evoke community interest after the financial crisis.
Govt can’t legislate for common sense
While the traditional categorisations of investors seems anachronistic, some government reform ideas will make it more complicated.
UK raises bank levy to $4bn
The UK will raise its annual tax on bank balance sheets this year to ensure a “fair contribution” to the public purse.
M&A;
| Pos | Name | Value ($m) | No | % share |
| 1 | Macquarie Group | 1,798 | 4 | 25.7 |
| 2 | Bank of America Merrill Lynch | 986 | 2 | 14.1 |
| 3 | UBS | 926 | 1 | 13.3 |
DCM
| Pos | Name | Value ($m) | No | % share |
| 1 | Westpac | 6,397 | 12 | 20.9 |
| 2 | Commonwealth Bank of Australia | 4,247 | 10 | 13.9 |
| 3 | ANZ | 3,773 | 12 | 12.3 |
ECM
| Pos | Name | Value ($m) | No | % share |
| 1 | Morgan Stanley | 869 | 1 | 40.5 |
| 2 | JPMorgan | 291 | 1 | 13.6 |
| 3 | Austock Group Ltd | 145 | 2 | 6.8 |
Syndicated Loans
| Pos | Name | Value ($m) | No | % share |
| 1 | Westpac | 990 | 7 | 33.3 |
| 2 | ANZ | 645 | 4 | 21.7 |
| 3 | Commonwealth Bank of Australia | 620 | 4 | 20.9 |
Inside story: Gresham gives up GEON equity
One of Gresham’s private equity funds has been forced to cede some of the equity upside in one of its investments to reduce debt in the company.
Del Monte ruling challenges cosy bids
A US judge strikes a blow at the private equity industry, challenging the cosy relationship between buyout firms and their investment bankers.
BHP acquisition strategy: what the analysts say
High asset prices have crippled BHP’s acquisition plans, although the company may look to buy something in the energy sector.
China IPO premiums getting too high
Asian floats stunned the world last year, but Colonial’s top stock picker in China reckons the IPO window may have since closed.
AMP full-year underlying profit falls 2pc
Diversified wealth manager AMP says its full-year underlying profit falls 2 per cent as insurance claims spike.
Australia’s major banks on Moody’s watch
Moody’s places the credit rating of the four big banks on review for downgrade, citing concerns of over-reliance on wholesale debt funding.
UBS kept busy raising $222m in capital
Gujarat NRE Coking Coal’s capital raising has attracted around 38 new investors to its register and boosted liquidity.
NZ investment office approves Fletcher bid
Fletcher Building moves one step closer to taking over Crane Group, after getting the nod from New Zealand’s Overseas Investment Office.
Madoff says banks had to have known
Bernard Madoff said he never thought the collapse of his Ponzi scheme would cause the sort of destruction that has befallen his family.
Analysts bullish on Atlas Iron prospects
Analysts have upped their target prices and reiterated their bullish outlook for Atlas Iron in wake of its unconditional takeover of Giralia Resources.
Mergers & Acquisitions
Nasdaq, ICE consider making joint NYSE bid
With several big financial markets combining - not the least of which are NYSE Euronext and Deutsche Borse - some of the other exchanges are pondering a way to get a piece of the action.
Tassal suffers long wait for a bite
Four months after it put itself up for auction, Australia’s biggest salmon producer, Tassal, is yet to receive a formal offer for a controlling stake in the company.
Equity Capital Markets
Nasdaq, ICE consider making joint NYSE bid
With several big financial markets combining - not the least of which are NYSE Euronext and Deutsche Borse - some of the other exchanges are pondering a way to get a piece of the action.
Long after fall, Countrywide's Mozilo defends legacy
Last year, long after Countrywide Financial nearly collapsed under the weight of subprime home loans, Angelo Mozilo passionately defended the mortgage lender.
Debt Markets
Atlantic leads resource bond rush
Atlantic’s Midwest Vanadium’s $US335 million debt raising is likely to the be the first of many international high-yield bond issues by ambitious Australian miners hungry for financing.
Moody’s bank review brushed off
Fund managers have dismissed a potential ratings downgrade of major banks by Moody’s Investors Service as insignificant, noting the ability of the big four to pass higher funding costs onto customers.
Private Equity
Shorten slams private equity strategy
Assistant Treasurer Bill Shorten hit back at claims that government policy is to blame for the collapse of REDgroup, the owner of book retailers Angus & Robertson and Borders, and questioned the debt-laden private equity business model.
ING Private Equity eyes exits for profit
Listed investment company ING Private Equity Access hopes a number of exit deals some of its private equity managers have on the table will boost its future profitability, having revealed a weaker net profit of $948,000 for the half-year, down 79 per cent compared with a year ago.
Legal
Fortescue case highlights a curious scarcity
Analysis | Given the centrality of continuous disclosure to the operation of the capital markets, it is curious there have been so few court decisions on the scope of directors’ duty to disclose.
Friday debrief: Mark Pistilli
It’s been a big week for Mark Pistilli. His Sydney law firm was one of two boutiques to announce a merger with the largest firm in Britain, Clifford Chance.
Strategy
JPMorgan trades staff for efficiency
Fast track | JPMorgan’s plan to consolidate its disparate trading systems will affect the employment of up to 3000 employees of the investment bank and may result in savings of $US300 million a year.
Pay reform sticky for bankers on the move
Longer vesting periods of stock and cash bonuses and clawbacks are typical features of new pay deals at investment banks, making poaching more expensive.
Accounting
Claims of code tinkering rejected
The head of the independent body that sets the code of ethics and professional standards for the members of the three professional accounting bodies has rejected criticism that it has dabbled too much with the new code of ethics.
Accoutants figure in skills shortage
A mantra not heard among accountants for several years is re-emerging as demand for their skills picks up.