K64 Auxiliary Finance and Insurance Services

Takeover rush fuelled by cheap debt could shrink index

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Original article by Vesna Poljak
The Australian Financial Review – Page: 30 : 7-Aug-14

Hasan Tevfik of Credit Suisse expects Australia’s benchmark S&P/ASX 200 Index to reach 6,000 points by the end of 2014. He forecasts that the low cost of funding via debt markets will lead to an upturn in takeover activity in Australia. This in turn will result in the number of companies that are acquired or undertake buybacks exceeding IPO and capital raising activity

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, DAVID JONES LIMITED – ASX DJS, AUSTRALAND PROPERTY GROUP – ASX ALZ, TREASURY WINE ESTATES LIMITED – ASX TWE, UNITED STATES. FEDERAL RESERVE BOARD, BUSINESS 20 (B20), RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Fosun’s cash offer wins Roc Oil

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Original article by Matt Chambers
The Australian – Page: 18 : 5-Aug-14

Fund management firm Allan Gray, which has a 19% stake in Australian-listed Roc Oil, has given its support to a takeover offer worth $A474m. The suitor is private Chinese group Fosun, which will pay $A0.69 a share in cash. Allan Gray had previously lobbied against an attempt by Roc to stage a merger of equals with Horizon Oil that required no stockholder vote, and it motivated 51% of Roc’s investors to demand a say on the proposal. Roc will now be delisted by Fosun, and on 4 August 2014 the stock closed $A0.045 higher at $A0.675. Horizon shares fell $A0.025 to $A0.345

CORPORATES
ROC OIL COMPANY LIMITED – ASX ROC, HORIZON OIL LIMITED – ASX HZN, FOSUN INTERNATIONAL LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, OSAKA GAS COMPANY, ASX LIMITED – ASX ASX

Confusion with Financial Planner independence continues

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Aug-14

A Roy Morgan Research Consumer Single Source survey has found that considerable confusion remains among the users of Australian financial planners regarding the extent to which the planner is perceived to be independent. This is particularly so when the financial planner is branded differently to its parent company. For example, 55 per cent of clients of Commonwealth Bank-owned Financial Wisdom consider it to be independent, while just 14 per cent of clients consider Commonwealth Bank-branded planners to be independent

CORPORATES
ROY MORGAN RESEARCH LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FINANCIAL WISDOM LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, GODFREY PEMBROKE FINANCIAL SERVICES LIMITED, RETIREINVEST PTY LTD, COUNT WEALTH ACCOUNTANTS, AMP LIMITED – ASX AMP, CHARTER FINANCIAL PLANNING LIMITED

No retail rally after sales lift

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Original article by Blair Speedy
The Australian – Page: 17 : 4-Aug-14

The latest retailing sector turnover data to be issued by the Australian Bureau of Statistics are forecast to show an increase in seasonally adjusted terms of 0.3% for June 2014. While this would be an improvement from a 0.5% fall in May, investors are still likely to take a negative view on such stocks as many groups report slower earnings growth. Some listed retailers have already issued profit warnings, due in large part to warm winter weather. The first major retailer to report will be JB Hi-Fi on 11 August

CORPORATES
JB HI-FI LIMITED – ASX JBH, PACIFIC BRANDS LIMITED – ASX PBG, THE REJECT SHOP LIMITED – ASX TRS, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED – ASX DJS, CITIGROUP PTY LTD, AUSTRALIAN BUREAU OF STATISTICS

ASIC taking strong action

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Original article by Nassim Khadem
The Australian Financial Review – Page: 11 : 1-Aug-14

Greg Tanzer of the Australian Securities & Investments Commission (ASIC) has issued its report on regulation of the financial planning profession, for the six months ending 30 June 2014. A total 256 enforcement actions were taken by ASIC, with 173 of these relating to small business operators. During the half-year 28 individuals were banned from providing financial advice. The watchdog has to contend with budget cuts of $A120m as well as recent amendments to the Future of Financial Advice laws

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VIRGIN MONEY (AUSTRALIA) PTY LTD, GE MONEY, AUSTRALIAN LABOR PARTY

Woodside buyback in doubt

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 & 23 : 31-Jul-14

Woodside Petroleum shareholders will vote on a proposed share buyback at an extraordinary general meeting on 1 August 2014. The deal to buy $US2.68bn ($A2.85bn) worth of shares from Royal Dutch Shell must be supported by 75 per cent of votes, but a number of superannuation funds are expected to oppose it. There is concern that the selective buyback treats Shell more favourably than other Woodside shareholders

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, PLATO INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, ISS PROXY AUSTRALIA, OWNERSHIP MATTERS PTY LTD, CGI GLASS LEWIS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, WESTFIELD CORPORATION – ASX WFD, STANDARD AND POOR’S ASX 300 INDEX

$3.6b float boosts share confidence

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Original article by Jessica Gardner
The Australian Financial Review – Page: 15 & 20 : 29-Jul-14

Healthscope’s stock closed $A0.11 higher at $A2.21 on 28 July 2014, after dipping to $A2.09 early in its debut trading session The stock was issued at $A2.10 in a $A3.6bn IPO. Private equity firms TPG Capital and The Carlyle Group will retain their 38 per cent stake until Healthscope releases its financial results for fiscal 2015. The two firms had paid $A2.7bn for the private hospitals operator in 2010

CORPORATES
HEALTHSCOPE LIMITED – ASX HSO, TPG CAPITAL LP, THE CARLYLE GROUP, AURIZON HOLDINGS LIMITED – ASX AZJ, MEDIBANK PRIVATE LIMITED, STANDARD AND POOR’S ASX 200 INDEX, RAMSAY HEALTH CARE LIMITED – ASX RHC

Shares rebound and the seven-year itch

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Original article by Philip Baker
The Australian Financial Review – Page: 29 : 29-Jul-14

Australia’s benchmark S&P/ASX 200 Index rose to a new high only six years after the 1987 sharemarket correction, and just three years after the correction in 1980. In contrast, the market is approaching the seventh anniversary of its record close in November 2007, and it has yet to return to or surpass this level. The underperforming junk bond market may prove to be the "turning point" that investors are seeking for shares

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES ACCUMULATION INDEX, UNITED STATES. FEDERAL RESERVE BOARD, NUMERICABLE GROUP SA, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, BARCLAYS GLOBAL INVESTORS

Woodside gains the backing of ASA

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Original article by Barry FitzGerald
The Australian – Page: 17 : 28-Jul-14

Investors in Woodside Petroleum will on 1 August 2014 vote on the proposed stock repurchasing move worth $A2.85bn that has been triggered by Royal Dutch Shell’s partial divestment. The latter is reducing its stake from 23.1% to 4.5%, and Woodside wants to buy back 9.5% at $A36.49 a share. The company has gained the backing, with some qualifications, of the Australian Shareholders Association. However it must still address concern by institutional investors such as superannuation funds at the lack of franking credits. On 25 July the stock closed at $A42.70

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Mesoblast sows the seeds for stem cell success

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Original article by Rick Wallace
The Australian – Page: 15 & 16 : 28-Jul-14

A new regulatory environment in Japan means it will be the initial market in which Australian-listed biotechnology group Mesoblast launches its revolutionary stem cells therapy product. CEO Silviu Itescu notes that this will be a world first, and should boost stock analysts’ forecasts for the company. A 2016 launch in the US is also being aimed for. In that nation Mesoblast has concluded phase III clinical trials of mesenchymal stem cells for treating childhood graft-versus-host-disease. The group has cash holdings of about $A220m, and can allocate funding to separate trials of its degenerative disc repair product

CORPORATES
MESOBLAST LIMITED – ASX MSB, UNITED STATES. FOOD AND DRUG ADMINISTRATION, JCR PHARMACEUTICALS COMPANY LIMITED, TEVA PHARMACEUTICAL INDUSTRIES LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG