K64 Auxiliary Finance and Insurance Services

Medibank pressure to perform

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Original article by Jessica Gardner
The Australian Financial Review – Page: 1 & 8 : 24-Nov-14

The Australian Government will gain $A5.7bn from the sale of Medibank Private, after the institutional bookbuild price was set at $A2.15 per share. Jan van der Schalk of CLSA values the health fund at between $A1.55 and $A1.64 per share, noting that Medibank’s management will face a lot of pressure to achieve results due to the high issue price for the stock. Retail investors will pay $A2 per share for Medibank stock, which will debut on the sharemarket on 25 November 2014

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, CLSA AUSTRALIA PTY LTD, ARGO INVESTMENTS LIMITED – ASX ARG, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN ETHICAL INVESTMENT LIMITED – ASX AEF, JAPARA HEALTHCARE LIMITED – ASX JHC, NIB HOLDINGS LIMITED – ASX NHF, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

No charges, but watchdog takes civil action after LM property collapse

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Original article by Ben Butler, Roseanne Barrett
The Australian – Page: 19 : 21-Nov-14

The Australian Securities & Investments Commission (ASIC) is bringing a civil action against real estate investor Peter Drake, but it will not pursue criminal charges. His LM fund management firm raised $A800m-plus from small retail shareholders before failing in 2013. The watchdog alleges that Drake channelled $A26m to personal spending, and that director’s duties were breached in approving the loans by LM’s Francene Mulder, Eghard van der Hoven, Simon Jeremy Tickner and Lisa Maree Darcy

CORPORATES
LM INVESTMENT MANAGEMENT LIMITED, LM ADMINISTRATION PTY LTD, LM MANAGED PERFORMANCE FUND, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MADDISON ESTATE PTY LTD, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DIRECTOR OF PUBLIC PROSECUTIONS, ERNST AND YOUNG

Nexus investors lash ASIC inaction

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Original article by Leo Shanahan
The Australian – Page: 23 : 20-Nov-14

Piper Alderman lawyer Amanda Banton, who represents investors in Nexus Energy opposed to its acquisition by Seven Group Holdings, has criticised the Australian Securities & Investments Commission. The watchdog has taken no action after Seven made a low offer of $A0.02 and then moved to buy the collapsed Nexus following the rejection by stockholders of the original bid. A major issue is the dual role of Don Voelte as Seven CEO and Nexus chair

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, NEXUS ENERGY LIMITED – ASX NXS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, PIPER ALDERMAN, AZURE CAPITAL PTY LTD, LIBERAL PARTY OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES

Medibank float could raise $5.8b

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Original article by Jessica Gardner, Sarah Thompson, Jake Mitchell
The Australian Financial Review – Page: 21 & 26 : 20-Nov-14

Strong demand for shares in the Medibank Private IPO has prompted the Australian Government to upgrade the indicative share price range. This was initially set at between $A1.55 and $A2, but will now be from $A2 to $A2.30. Some fund managers expect the final issue price to be set at $A2.10 per share, which would value the float at about $A5.8bn. Retail investors will pay a maximum of $A2 per share

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF FINANCE, TELSTRA CORPORATION LIMITED – ASX TLS, QR NATIONAL LIMITED

Medibank book-build under way

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Original article by Jessica Gardner, Sarah Thompson, Jake Mitchell
The Australian Financial Review – Page: 15 & 26 : 19-Nov-14

An unnamed fund manager says there has been a "bidding frenzy" for shares in the IPO of Medibank Private. The institutional bookbuild commenced on 18 November 2014, with some fund managers tendering to buy shares at a price well above the indicative range of $A1.55 to $A2 per share. The retail component of the share offer attracted some $A17bn worth of bids. CLSA analysts have valued Medibank stock at between $A1.55 and $A1.64

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, CLSA AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

Funds predict tough times ahead for local shares

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 28 : 19-Nov-14

Paradice Investment Management founder David Paradice is among the fund managers who forecast lower earnings growth in Australia during 2015. Geoff Wilson of Wilson Asset Management expects the Australian sharemarket to be lower at the end of 2015, while Damien Boey of Credit Suisse says factors such as the weaker Australian economy and the fall in commodity prices will prompt at least one more interest rate cut

CORPORATES
PARADICE INVESTMENT MANAGEMENT PTY LTD, WILSON ASSET MANAGEMENT, CREDIT SUISSE (AUSTRALIA) LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, CALTEX AUSTRALIA LIMITED – ASX CTX, COCHLEAR LIMITED – ASX COH, TABCORP HOLDINGS LIMITED – ASX TAH, SLATER AND GORDON LIMITED – ASX SGH, INFOMEDIA LIMITED – ASX IFM, ARISTOCRAT LEISURE LIMITED – ASX ALL, RESERVE BANK OF AUSTRALIA

Medibank Private float stirs hype as retail demand balloons

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 18-Nov-14

There has been strong demand for Medibank Private shares from both retail and institutional investors. Retail investors have expressed interest in buying more than $A4.8bn shares in the IPO, while institutional demand is estimated at $A12bn. The share offer for retail investors closed on 14 November 2014, while the bookbuild for institutional investors will commence on 19 November. Retail investors will pay no more than $A2 per share

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF FINANCE, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, MACQUARIE CAPITAL PTY LTD, ELEY GRIFFITHS GROUP PTY LTD, PROMINA GROUP LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS

Regulator eyes bloated goodwill

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Original article by Ben Butler, Sarah Danckert
The Australian – Page: 22 : 17-Nov-14

A growing number of Australian-listed groups, especially in the private education and health services sectors, show excessive levels of goodwill. Those with a ratio of 70% or above on their balance sheets include Affinity Education, Vocation, Primary Health Care, iBuy Group, Vision Eye Institute, Allmine, Asaplus Resources and G8 Education. The issue has prompted a warning to companies about increased scrutiny of such accounting claims by the Australian Securities & Investments Commission

CORPORATES
AFFINITY EDUCATION GROUP LIMITED – ASX AFJ, VOCATION LIMITED – ASX VET, PRIMARY HEALTH CARE LIMITED – ASX PRY, IBUY GROUP LIMITED – ASX IBY, ASAPLUS RESOURCES LIMITED – ASX AJY, G8 EDUCATION LIMITED – ASX GEM, VISION EYE INSTITUTE LIMITED – ASX VEI, ALLMINE GROUP LIMITED – ASX AZG, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FIL INVESTMENT MANAGEMENT LIMITED, FIDELITY AUSTRALIAN EQUITIES FUND, K CAPITAL PTY LTD, NM ROTHSCHILD AND SONS (AUSTRALIA) LIMITED, ENDEAVOUR COLLEGE OF NATURAL HEALTH, BAWM GROUP PTY LTD, ASPIN PTY LTD, PERPETUAL LIMITED – ASX PPT, FORGE GROUP LIMITED, LIVINGSOCIAL

Global dividends tipped to hit $1.4 trillion in 2015

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Original article by Sally Rose
The Australian Financial Review – Page: 24 : 17-Nov-14

Henderson Global Investors forecasts that $US1.19trn worth of dividends will be paid to shareholders globally in 2014, rising to $US1.24trn in 2015. Some $US288.1bn worth of dividends were paid globally during the September 2014 quarter, according to the Henderson Global Dividend Index. Australian-listed Westpac, ANZ Bank, BHP Billiton and Telstra were among the world’s 20 leading stocks in terms of dividend payouts during the period

CORPORATES
HENDERSON GLOBAL INVESTORS LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, STANDARD AND POOR’S ASX 200 INDEX, WESTFIELD CORPORATION – ASX WFD, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHINA CONSTRUCTION BANK, GAZPROM, CHINA MOBILE COMMUNICATIONS CORPORATION

Councils target ANZ on sale of toxic debt

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Original article by Leo Shanahan
The Australian – Page: 31 : 14-Nov-14

Australian local government bodies led by Coffs Harbour City Council are launching legal action in the Federal Court against ANZ Bank. They allege misleading and deceptive conduct, breach of contract, breach of fiduciary duties and breach of the banking code of practice. ANZ had sold the claimants risky collateralised debt obligations between 2006 and 2008, without disclosing its own stake in the instruments. A co-respondent to the suit is credit ratings agency Fitch Ratings, which had given "AAA" status to the Credit Sail II product

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FITCH RATINGS LIMITED, COFFS HARBOUR CITY COUNCIL, FEDERAL COURT OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, LEHMAN BROTHERS INCORPORATED, GLOUCESTER SHIRE COUNCIL