Author: roymorgansocial

Rio looks long term and offers Jacques 10 years at the top

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 4-May-17

Todd Warren of Colonial First State Global Asset Management supports Rio Tinto’s revelation that CEO Jean-Sebastien Jacques has been given a 10-year contract. He argues that such a contract allows management to make decisions with a company’s long-term interests in mind. Warren and Peter O’Connor of Shaw & Partners are both of the view that CEOs with long mandates should be subject to short-term performance standards. The length of Jacques contract was not specified when he was appointed in March 2016.

CORPORATES
RIO TINTO LIMITED – ASX RIO, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, SHAW AND PARTNERS LIMITED, ORIGIN ENERGY LIMITED – ASX ORG, LEIGHTON HOLDINGS LIMITED, WORLEYPARSONS LIMITED – ASX WOR

Treasurer blocks BHP offshore move

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Original article by Emily Ritchie
The Australian – Page: 1 & 6 : 4-May-17

The Federal Government has signalled that it would intervene to thwart any attempt to shift BHP Billiton’s primary sharemarket listing to the UK. Treasurer Scott Morrison says retaining BHP’s dual listing is in the national interest, given the resources group’s economic contribution to Australia and BHP’s large domestic shareholder base. BHP itself has estimated that the proposal by activist hedge fund Elliott Management would cost around $US1.3bn ($A1.73bn). Morrison has also suggested that BHP directors could face criminal and civil action if the dual listing is abolished.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF THE TREASURY, ELLIOTT MANAGEMENT CORPORATION, MOODY’S INVESTORS SERVICE INCORPORATED, ARCONIC INCORPORATED, ALCOA INCORPORATED

Moody’s deals blow to Elliott BHP plan

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 4-May-17

Moody’s Investors Service has upgraded BHP Billiton’s "A3" credit rating outlook from "stable" to "positive". The ratings agency has cited factors such as BHP’s prospects for further growth in earnings and free cashflow due to the continued strength of commodity prices. However, Moody’s adds that the restructuring proposals of activist hedge fund Elliott Management could adversely affect BHP’s credit rating.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, MOODY’S INVESTORS SERVICE INCORPORATED, ELLIOTT MANAGEMENT CORPORATION, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP

PE floats sag in 2016, but not over 3 years

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 19 : 4-May-17

Rothschild and the Australian Private Equity & Venture Capital Association have produced a report which shows that IPOs backed by private equity firms underperformed the broader IPO market in 2016. The former delivered an average share price gain of 2.8 per cent, compared with a gain of 10.5 per cent for other floats. However, there were just five private equity-backed IPOs in Australian during the calendar year, and analysis shows that such IPOs have outperformed since 2013.

CORPORATES
NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, ZIP INDUSTRIES AUSTRALIA, QUADRANT PRIVATE EQUITY PTY LTD, QUICK SERVICE RESTAURANTS HOLDINGS PTY LTD, OFFICEWORKS SUPERSTORES PTY LTD, WESFARMERS LIMITED – ASX WES, BINGO INDUSTRIES LIMITED – ASX BIN, TEGEL GROUP HOLDINGS LIMITED – ASX TGH, INGHAMS GROUP LIMITED – ASX ING, SCOTTISH PACIFIC GROUP LIMITED – ASX SCO, BRAVURA SOLUTIONS LIMITED.- ASX BVS, GTN LIMITED – ASX GTN, STANDARD AND POOR’S ASX SMALL INDUSTRIALS INDEX, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, CYAN INVESTMENT MANAGEMENT PTY LTD, REGAL FUNDS MANAGEMENT PTY LTD, ALINTA ENERGY (AUSTRALIA) PTY LTD, ACCOLADE WINES LIMITED

Export rules will hit investment: Barnett

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Original article by Paul Garvey
The Australian – Page: 20 : 4-May-17

Former Western Australian premier Colin Barnett has questioned the merits of the Federal Government’s plans to impose LNG export controls. He warns that the policy will do little to address the energy crisis on the nation’s east coast. Barnett argues that it will instead harm Australia’s international reputation and increase sovereign risk, which will in turn impact on future investment in Australia.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, AUSTRALIAN LABOR PARTY, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Nine ‘stretched to the limit’ on cricket rights

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Original article by Vesna Poljak
The Australian Financial Review – Page: 17 : 3-May-17

Nine Entertainment Company CEO Hugh Marks says cricket coverage is still important to the Nine Network, but he concedes that the group can only afford to pay so much for the broadcasting rights. Marks adds that unlike sports such as AFL and NRL, cricket does not have a fixed scheduled each year and matches are often affected by the weather. He also says Nine must start delivering a return on its investment in other sports.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, TEN NETWORK HOLDINGS LIMITED – ASX TEN, BIG BASH LEAGUE, UBS HOLDINGS PTY LTD, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE

Senate inquiry blasts ATO on unpaid super

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Original article by Michael Roddan
The Australian – Page: 23 : 3-May-17

It is estimated that about three million Australian workers do not receive their compulsory superannuation contributions, which equates to around $A6bn per year. A Senate economics committee inquiry has recommended that the Australian Taxation Office should adopt a more proactive approach to non-compliance with the super guarantee regime. The ATO’s focus at present is on a self-reporting system for employers who fail to pay some or all of the guarantee.

CORPORATES
AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF FINANCE, INDUSTRY SUPER AUSTRALIA PTY LTD

Digital classifieds under the pump

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Original article by Stewart Oldfield
The Australian Financial Review – Page: 24 : 3-May-17

Deutsche Bank estimates that based on forecast earnings for 2018, online classified advertising companies REA Group, Seek and Carsales are trading at a 70 per cent premium to the broader industrial sector. However, while rising share prices have seen their combined market capitalisation top $A17bn, the three dominant players in real estate, jobs and automotive classifieds face potential headwinds, including competition from new and established rivals and a growing threat from social media companies such as Facebook.

CORPORATES
REA GROUP LIMITED – ASX REA, SEEK LEARNING PTY LTD, CARSALES.COM LIMITED – ASX CAR, DEUTSCHE BANK AG, FACEBOOK INCORPORATED, MORGANS FINANCIAL LIMITED, DOMAIN.COM.AU, FAIRFAX MEDIA LIMITED – ASX FXJ, COX AUTOMOTIVE, AUTOTRADER, CARSGUIDE, MORGAN STANLEY AUSTRALIA LIMITED, MAVERICK STRATEGIES, CITIGROUP PTY LTD, MONSTER WORLDWIDE INCORPORATED, INDEED INCORPORATED, CAREERBUILDER, RANDSTAD HOLDINGS NV

Elliott spruiks BHP plan to Sydney hedge funds

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Original article by Peter Ker, John Kehoe
The Australian Financial Review – Page: 15 : 3-May-17

Representatives of activist US hedge fund Elliott Associates have organised meetings with Sydney-based institutional investors as it seeks to gain support for its proposal for a restructuring of the resources giant. However, some large local investors have indicated that they have not held talks with Elliott and will not back its proposals. Elliott has also been targeting several other global companies, including Arconic and Samsung.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, ELLIOTT ASSOCIATES LIMITED PARTNERSHIP, ELLIOTT MANAGEMENT CORPORATION, ARCONIC INCORPORATED, SAMSUNG ELECTRONICS COMPANY LIMITED, ALCOA INCORPORATED

PM steals Gonski away from Labor

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 3-May-17

The Australian Government has asked David Gonski to undertake a second review of school funding, after announcing that it will adopt the needs-based funding model that he had recommended in 2011. The Government had previously resisted the needs-based model, which had been backed by the former Australian Labor Party government. Education Minister Simon Birmingham has advised that government funding for schools will increase by $A18.6bn over the next decade.

CORPORATES
AUSTRALIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. DEPT OF EDUCATION AND COMMUNITIES, VICTORIA. DEPT OF EDUCATION AND TRAINING, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL CATHOLIC EDUCATION COMMISSION