Author: roymorgansocial

Oil Search to reject $11.6b deal after Woodside talks canned

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Original article by Perry Williams
The Australian Financial Review – Page: 15 : 14-Sep-15

Woodside Petroleum’s takeover offer for Oil Search represents a 14 per cent premium to the target’s current share price, but Oil Search is likely to seek a premium of 25-30 per cent. The top executives of both groups had arranged a meeting to discuss the bid on 13 September, but Oil Search subsequently postponed it. The company is expected to formally reject the four-for-one share offer, which has an implied value of $A7.65 per share.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, GRESHAM PARTNERS LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Coalition relief as jobless rate reduces

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Original article by Jacob Greber
The Australian Financial Review – Page: 7 : 11-Sep-15

Australia’s unemployment rate fell to 6.2 per cent in August 2015, from 6.3 per cent in July. Figures from the Australian Bureau of Statistics show that employment rose by 17,400 jobs. Justin Fabo, a labour market expert at ANZ Bank, says the employment-to-population ratio rose in August, which suggests that the employment market is improving.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

Spanish ‘interest’ won’t derail NAB Clydesdale float

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Original article by James Chessell
The Australian Financial Review – Page: 16 : 11-Sep-15

There is speculation that Spain-based Sabadell may be a potential buyer of the UK’s Clydesdale Bank, which is being sold by National Australia Bank (NAB). The Spanish bank has previously paid Stg1.7bn for TSB Bank. NAB plans to offload Clydesdale via an IPO and the sale of shares directly to its own stockholders, and NAB sources say this has not changed. CEO Andrew Thorburn indicated in August 2015 that investors would be updated on the sale process in October.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, BANCO SABADELL, TSB BANK LIMITED, LLOYDS BANKING GROUP PLC, THE GOLDMAN SACHS GROUP INCORPORATED

Woolworths Holdings looks to Kelly for lift

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Original article by Sue Mitchell
The Australian Financial Review – Page: 18 : 11-Sep-15

Former Westpac CEO Gail Kelly will become a non-executive director of Woolworths Holdings on 1 October 2015. Kelly’s appointment is part of the South African group’s push to become one of the top retailers in the southern hemisphere. Australia accounts for about 40 per cent of Woolworths’ revenue, and its local assets include David Jones and Country Road. It also owns the Kirkcaldie & Staines department store in New Zealand.

CORPORATES
WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, COUNTRY ROAD LIMITED, KIRKCALDIE AND STAINS, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, NEDBANK

Go WA! Footy madness has hit – and the state’s the big winner

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Original article by Julie-anne Sprague
The Australian Financial Review – Page: 1 & 10 : 11-Sep-15

Western Australia will host four Australian Football League finals in 2015, which are collectively expected to boost the state’s economy by almost $A100m. The two finals matches in Perth on 12 and 13 September are tipped to attract more than 31,000 interstate supporters, while Fortescue Metals Group director Mark Barnaba says the finals will also boost morale in a state that has been hard hit by the downturn in the resources sector.

CORPORATES
AUSTRALIAN FOOTBALL LEAGUE, FORTESCUE METALS GROUP LIMITED – ASX FMG, FREMANTLE DOCKERS FOOTBALL CLUB, WEST COAST EAGLES FOOTBALL CLUB, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, MACQUARIE GROUP LIMITED – ASX MQG, HAWTHORN FOOTBALL CLUB, SYDNEY SWANS FOOTBALL CLUB, WESFARMERS LIMITED – ASX WES, TOURISM COUNCIL WESTERN AUSTRALIA LIMITED, CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA (INCORPORATED), PROGRAMMED MAINTENANCE SERVICES LIMITED – ASX PRG, SEVEN GROUP HOLDINGS LIMITED – ASX SVW

Woodside’s Oil Search bid criticised

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Original article by Perry Williams
The Australian Financial Review – Page: 13 & 18 : 11-Sep-15

Perennial Investment Partners’ Lee Mickelburough and Simon Mawhinney of Allan Gray Australia are among the fund managers who have doubts about Woodside Petroleum’s $A11.6bn takeover bid for Oil Search. Mickelburough says there would be more merit in Woodside seeking to acquire "distressed" assets whose value has been impacted by the downturn in the crude oil price. Oil Search is likely to seek an improved offer from Woodside.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, PERENNIAL INVESTMENT PARTNERS LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, WOOD MACKENZIE, SANTOS LIMITED – ASX STO

Court penalises CFMEU officials

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Original article by Ewin Hannan
The Australian Financial Review – Page: 11 : 11-Sep-15

The Federal Court of Australia has imposed fines on the Construction, Forestry, Mining & Energy Union and two union officials for failing to comply with laws on the right of entry to building sites. The union must pay a penalty of $A225,000 while the officials must pay $A27,500 and $A20,000 respectively. The union is not allowed to reimburse the officials.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA

Citi says 55pc chance of global recession

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Original article by Karen Maley
The Australian Financial Review – Page: 22 : 11-Sep-15

A new report from Citigroup’s chief economist Willem Buiter has raised the prospect of an emerging market-driven global recession. Buiter rates the chances of a global recession in the next two years at 55 per cent, warning that if the Chinese economy goes into recession it will have a flow-on effect on other emerging market economies. He adds that the limited scope for further interest rate cuts in developed economies may require central banks to consider more stimulus measures.

CORPORATES
CITIGROUP INCORPORATED

Atlas Iron lifts, nickel miners slump

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Original article by Tess Ingram
The Australian Financial Review – Page: 19 : 11-Sep-15

Atlas Iron has reported higher margins for August 2015, while it has achieved its full-year iron ore production target four months ahead of schedule. Meanwhile, the sharp downturn in the nickel price over the last year has weighed heavily on smaller Western Australia-focused nickel producers. Some have scaled back production or closed mines, while there is speculation that others will do so as well.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, INDEPENDENCE GROUP NL – ASX IGO, PANORAMIC RESOURCES LIMITED – ASX PAN, MINCOR RESOURCES NL – ASX MCR, POSEIDON NICKEL LIMITED – ASX POS, UBS HOLDINGS PTY LTD, GMP SECURITY PTY LTD, SIRIUS RESOURCES NL, BHP BILLITON LIMITED – ASX BHP, NICKEL WEST, McALEESE LIMITED – ASX MCS, QUBE HOLDINGS LIMITED – ASX QUB, MACA LIMITED – ASX MLD, PATERSONS SECURITIES LIMITED, WESTERN AREAS LIMITED – ASX WSA

Rental growth slows to 20-year low

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Original article by Michael Bleby
The Australian Financial Review – Page: 4 : 11-Sep-15

CoreLogic RP Data has reported that growth in asking rents for residential properties across Australia fell by 0.4 per cent overall in August 2014, compared with a 0.3 per cent fall in July. Growth in asking rents eased to 0.7 per cent year-on-year. Sydney was the only capital city to record a rise in asking rents during August. Cameron Kusher of CoreLogic RP Data cites factors such as slowing population growth and continued strong construction activity.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED