K62 Finance

US, Britain at fore as foreign investment rises 11.3pc

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Original article by Rowan Callick
The Australian – Page: 18 : 2-Oct-14

New data from Australia’s Department of Foreign Affairs & Trade show that during 2013 the value of overseas investments grew 11.3% to $A2.5trn. Of this figure, $A630bn was accounted for by direct investments, and the largest sources were the US with $A35bn, Singapore with $A14bn, the UK with $A12bn and Japan with $A10bn. However, China expanded its share by 43% to reach $A5bn. Meanwhile Australian investment overseas was worth $A1.6trn. It fell 4.1% in the year, while foreign direct investment in Australia was also down 5.3%

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

Deals get harder for PE raiders

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Original article by Bridget Carter
The Australian – Page: 18 : 30-Sep-14

Australian Private Equity & Venture Capital Association CEO Yasser El-Ansary says access to funding for major acquisition deals has become more difficult to arrange in the private equity sector. He believes that instead of large-scale takeovers, the new trend will be purchases of non-core operations being divested by listed groups. The comments come as Treasury Wine Estates has rebuffed competing offers by Kohlberg Kravis Roberts and Rhone Capital and by TPG Capital

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KOHLBERG KRAVIS ROBERTS AND COMPANY, RHONE CAPITAL LLC, TPG CAPITAL LP, KKR AND COMPANY LP, AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, SAI GLOBAL LIMITED – ASX SAI, WOOLWORTHS LIMITED – ASX WOW, DICK SMITH HOLDINGS LIMITED – ASX DSH, ASX LIMITED – ASX ASX, ANCHORAGE CAPITAL PARTNERS PTY LTD, UGL LIMITED – ASX UGL, DTZ AUSTRALIA PTY LTD, BAIN CAPITAL LLC, THE BLACKSTONE GROUP LP, PACIFIC EQUITY PARTNERS PTY LTD, ORICA LIMITED – ASX ORI, ARMYTAGE PRIVATE LIMITED

Medibank may deliver $5.7b at sale

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Original article by Jessica Gardner
The Australian Financial Review – Page: 4 : 30-Sep-14

Analysts have previously valued Medibank Private at between $A4bn and $A4.5bn. Goldman Sachs has suggested that the health insurer could potentially be worth between $A4.1bn and $A5.7bn, while Deutsche Bank values it at $A4.2bn to $A5.3bn. Watermark Funds Management’s Omkar Joshi says the Australian Government is likely to place a lower valuation on the stock in the hope that it will rise on the first day of trading on the sharemarket

CORPORATES
MEDIBANK PRIVATE LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, DEUTSCHE BANK AG, WATERMARK FUNDS MANAGEMENT PTY LTD, AUSTRALIA. DEPT OF FINANCE, MACQUARIE CAPITAL PTY LTD, NIB HOLDINGS LIMITED – ASX NHF, STANDARD AND POOR’S ASX 200 INDEX, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

RBA asked to explain backflip on lending risks

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Original article by Christopher Joye
The Australian Financial Review – Page: 6 : 29-Sep-14

The Reserve Bank of Australia (RBA) in mid-2013 reduced the official cash interest rate to a record low, and said the residential real estate market was not experiencing a "bubble". However a year on the central bank has revised its stance, and now warns of a dangerous prices surge. It may even resort to using macroeconomic tools, which has sparked concern among federal Senate economics committee members Matthew Canavan and Sam Dastyari of the National Party and Australian Labor Party respectively. RBA deputy governor Philip Lowe has been asked to address the committee on the issue

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN BUREAU OF STATISTICS

KKR tipped to win Treasury Wine

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Original article by Simon Evans, Sarah Thompson
The Australian Financial Review – Page: 1 & 11 : 29-Sep-14

Competing, revised takeover offers were lodged on 26 September 2014 for Australian-listed Treasury Wine Estates (TWE). It is believed that the directors will now recommend acceptance of the offer received from the consortium of Kohlberg Kravis Roberts (KKR) and Rhone Capital, rather than that of rival US-based private equity firm TPG Capital. The KKR bid is worth around $A5.20 a share. TWE’s earnings are being boosted by the recent decline in the Australian dollar

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, RHONE CAPITAL LLC, TPG CAPITAL LP, PENFOLDS WINES PTY LTD, WOLF BLASS WINES PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, CITIGROUP PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD

NAB tight-lipped on sale of life insurance

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Original article by Bridget Carter
The Australian – Page: 28 : 25-Sep-14

There is speculation that National Australia Bank may sell its life insurance business. The bank acquired Aviva for $A825 million in 2009 and the bank has become one of the largest operators in the life insurance sector. CEO Andrew Thorburn has said that he will consider the sale of non-core assets. The life insurance sector is under margin pressure as sales are slowing

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AVIVA AUSTRALIA LIMITED, CLYDESDALE BANK PLC, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, CERBERUS GLOBAL INVESTMENTS LLC, YORKSHIRE BANK PLC, DEUTSCHE BANK AG

NAB faces $4.3m harassment suit

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Original article by Leo Shanahan
The Australian – Page: 17 : 24-Sep-14

National Australia Bank has declined to comment on a pending claim for damages by a former executive of its JBWere wealth management business. Antonia Thornton alleges in her statement of claim that she was subject to discrimination and harassment after revealing in 2009 that she was pregnant. Thornton also alleges that she was effectively forced to resign, as the discrimination continued after she returned from maternity leave

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, JBWERE LIMITED, FEDERAL COURT OF AUSTRALIA, GOLDMAN SACHS AUSTRALIA PTY LTD

NAB pitches $1.7b US bank ahead of major sell-down

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Original article by John Kehoe
The Australian Financial Review – Page: 13 : 22-Sep-14

National Australia Bank (NAB) is believed to be planning a partial IPO of US-based Great Western Bank, which it acquired in 2007. The banking major will retain a stake of around 70 per cent, which is expected to be divested during the 12 months following the IPO. NAB will hold a roadshow for US investors in October 2014, and there are expectations that it could gain around $US1.5bn ($A1.7bn) in total from the sale of Great Western

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GREAT WESTERN BANK, NEW YORK STOCK EXCHANGE, HOMESIDE LENDING INCORPORATED, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, DEUTSCHE BANK AG, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, ROYAL BANK OF SCOTLAND GROUP PLC, CITIZENS FINANCIAL GROUP INCORPORATED

Deutsche fires rogue forex trader

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 13 & 20 : 22-Sep-14

The Australian Securities & Investments Commission and the Australian Prudential Regulation Authority will look into the actions of a "rogue" foreign exchange trader. Deutsche Bank dismissed Andy Donaldson in June 2014 after he was found to have been overstating foreign exchange trades, resulting in large losses for his employer. There have been similar scandals at Deutsche’s international operations

CORPORATES
DEUTSCHE BANK AG, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BARCLAYS BANK PLC, THE GOLDMAN SACHS GROUP INCORPORATED, ROYAL BANK OF SCOTLAND GROUP PLC, UBS AG

‘Heretic’ flags break-up of Australia’s big four banks

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 17 : 19-Sep-14

Investment banker Alastair Walton has warned that Australia’s four major banks will be vulnerable in the event of another financial crisis. He says that rather than imposing stricter capital requirements, it may be better to look at forcing the "AA-"-rated banks to demerge and be broken up into 8-10 smaller banks with "A" credit ratings. The BKK Partners chairman notes that the four major banks rate among the 20 biggest in the world

CORPORATES
BKK PARTNERS PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA. COUNCIL OF FINANCIAL REGULATORS, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN BANKERS’ ASSOCIATION