M&A ‘explosion’ may not rattle Australia

Original article by Jared Lynch
The Australian Financial Review – Page: 23 : 22-Jul-14

GMO co-founder Jeremy Grantham is expecting a "veritable explosion" in mergers and acquisitions activity in Australia. He says that three factors will lead to a record number of mergers and acquisitions deals, namely cheap capital, the economic recovery and high profit margins. JPMorgan is not convinced. The firm believes that foreign investors will be deterred by the high value of the Australian dollar

CORPORATES
GRANTHAM MAYO VAN OTTERLOO AND COMPANY LLC, JP MORGAN AUSTRALIA LIMITED, WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED – ASX DJS, TREASURY WINE ESTATES LIMITED – ASX TWE, KOHLBERG KRAVIS ROBERTS AND COMPANY, STANDARD AND POOR’S 500 INDEX, TIME WARNER INCORPORATED, NEWS CORPORATION – ASX NWS, 21ST CENTURY FOX INCORPORATED

Sunshine brings winter of discontent to stocks

Original article by Philip Baker
The Australian Financial Review – Page: 23 : 22-Jul-14

Climate modelling suggests that there is a strong chance of Australia experiencing another El Nino phenomenon late in 2014. The unseasonably warm weather during the winter has already adversely affected the sales of some retailers. Tim Rocks of the Commonwealth Bank says stocks in a range of sectors could be hurt by a protracted period of warm weather. These include GrainCorp, Nufarm, AGL Energy and Suncorp Group

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, GRAINCORP LIMITED – ASX GNC, NUFARM LIMITED – ASX NUF, AGL ENERGY LIMITED – ASX AGK, SUNCORP GROUP LIMITED – ASX SUN, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, INCITEC PIVOT LIMITED – ASX IPL, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, DAVID JONES LIMITED – ASX DJS, MYER HOLDINGS LIMITED – ASX MYR, PREMIER INVESTMENTS LIMITED – ASX PMV, KATHMANDU HOLDINGS LIMITED – ASX KMD, PACIFIC BRANDS LIMITED – ASX PBG, THE REJECT SHOP LIMITED – ASX TRS, ORIGIN ENERGY LIMITED – ASX ORG, SUPER RETAIL GROUP LIMITED – ASX SUL, SUPER CHEAP AUTO, AUSTRALIA. DEPT OF AGRICULTURE, LEND LEASE GROUP LIMITED – ASX LLC, LEIGHTON HOLDINGS LIMITED – ASX LEI, BORAL LIMITED – ASX BLD, BHP BILLITON LIMITED – ASX BHP, CSR LIMITED – ASX CSR, QANTAS AIRWAYS LIMITED – ASX QAN, RIO TINTO LIMITED – ASX RIO, WESFARMERS LIMITED – ASX WES, SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL, CARNEGIE WAVE ENERGY LIMITED – ASX CWE, DYESOL LIMITED – ASX DYE, SILEX SYSTEMS LIMITED – ASX SLX, ENERGY DEVELOPMENTS LIMITED – ASX ENE, BLUGLASS LIMITED – ASX BLG, INFIGEN ENERGY LIMITED – ASX IFN

Buyback may go on hold as iron ore earnings fall

Original article by Amanda Saunders
The Australian Financial Review – Page: 15 : 21-Jul-14

Analyst Paul Taggart says Credit Suisse expects any capital management initiatives at BHP Billiton to be deferred until August 2015 at the earliest. There has been ongoing anticipation of a stock buyback by the Australian-listed mining company. However, the iron ore price has contracted by nearly 25 per cent in 2014. The resources group’s 2014-15 earnings may fall by up to 14 per cent. BHP will issue its quarterly production results on 23 July 2014

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD

Healthscope price splits fund managers

Original article by Jemima Whyte
The Australian Financial Review – Page: 13 : 21-Jul-14

Shares in Healthscope will be priced within the range of $A1.76 and $A2.29 apiece in an IPO that will be worth around $A2.5bn. The company is being floated by TPG Capital and The Carlyle Group, but Anton Tagliaferro of Investors Mutual says investors should be cautious about IPOs that are backed by private equity firms. He believes that Healthscope’s shares are overvalued and says Investors Mutual will not be buying stock in the float

CORPORATES
HEALTHSCOPE LIMITED – ASX HSO, INVESTORS MUTUAL LIMITED, TPG CAPITAL LP, THE CARLYLE GROUP, EQUITY TRUSTEES LIMITED – ASX EQT, PENGANA CAPITAL LIMITED, RAMSAY HEALTH CARE LIMITED – ASX RHC

Investors weary from IPO oversupply

Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 17-Jul-14

Monash IVF, Mantra Group and 3P Learning are among the Australian stocks that have underperformed since their sharemarket float in recent months. Simon Conn of Investors Mutual attributes this to factors such as the high level of IPO activity and the fact that many of these floats are businesses that have been sold by private equity groups. However, Gary Nicholson of Ernst & Young rejects suggestions of "deal fatigue" among investors

CORPORATES
MONASH IVF GROUP LIMITED – ASX MVF, MANTRA GROUP LIMITED – ASX MTR, 3P LEARNING LIMITED – ASX 3PL, SMARTGROUP CORPORATION LIMITED – ASX SIQ, ASALEO CARE LIMITED – ASX AHY, INVESTORS MUTUAL LIMITED, ERNST AND YOUNG, PENGANA EMERGING COMPANIES FUND, OC FUNDS MANAGEMENT

Platinum moves in on emerging Asia

Original article by Vesna Poljak
The Australian Financial Review – Page: 28 : 16-Jul-14

Platinum Asset Management founder Kerr Neilson is increasing his fund’s exposure to Asian markets. Neilson believes that Chinese companies have good growth prospects, which will be reflected in their share prices. The fund is buying Asian stocks in sectors such as financials, metals, minerals and software development

CORPORATES
PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, PLATINUM CAPITAL LIMITED – ASX PMC, MORGAN STANLEY CAPITAL INTERNATIONAL INDEX, ZILLOW.COM, QIWI PLC, AMADEUS GLOBAL TRAVEL DISTRIBUTION SA, F HOFFMAN-LA ROCHE LIMITED, F HOFFMAN-LA ROCHE AG, YONYOU SOFTWARE COMPANY LIMITED, TOYOTA MOTOR CORPORATION, HOYA CORPORATION, ROHM COMPANY LIMITED, SBI HOLDINGS INCORPORATED, SUMITOMO METAL MINING CORPORATION, NORILSK NICKEL, MINING AND METALS COMPANY NORILSK NICKEL, CANADIAN OIL SANDS LIMITED, CHINA LIFE INSURANCE COMPANY LIMITED, CHINA PACIFIC INSURANCE COMPANY (GROUP) LIMITED, YANDEX NV, TENCENT HOLDINGS LIMITED, YOUKU TUDOU INCORPORATED, LINKEDIN LIMITED

South Africans wrap up DJs

Original article by Blair Speedy
The Australian – Page: 21-22 : 15-Jul-14

Gordon Cairns, chair of Australian-listed department stores chain David Jones (DJs), has announced that the takeover bid worth $A4 a share by South Africa’s Woolworths has been accepted. Support among investors was strong, with 50% of stockholders required to vote "yes" and the actual result being 89.6%. In terms of voted scrip, the 75% needed compares with an outcome of 96.8%. Entrepreneur Solomon Lew will sell his 9.9% holding into the scheme of arrangement and has abstained from the vote, meaning the deal can be ratified by the Federal Court on 17 July 2014. Lew will now also gain $A209m from the suitor for his interest of 11.8% in Country Road

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, WITCHERY FASHIONS PTY LTD, MIMCO DESIGNS PTY LTD, ASX LIMITED – ASX ASX

CBA on track for planners: Norris

Original article by Steve Creedy
The Australian – Page: 21 : 14-Jul-14

New Commonwealth Bank of Australia (CBA) CEO Ian Narev has issued an apology to customers affected by malpractice in its financial planning division between 2006 and 2010. The CEO at that time, Sir Ralph Norris, has now commented that he approves of Narev’s efforts in dealing with the scandal. It may cost the bank more than twice the $A52m already paid in compensation to the victims. CBA has also asked ex-High Court judge Ian Callinan to head a review of any further complaints. Sir Ralph says he was advised in 2010 that the matter was with the Australian Securities & Investments Commission

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH FINANCIAL PLANNING LIMITED

David Jones’ investors to vote

Original article by Blair Speedy
The Australian – Page: 19 : 14-Jul-14

Stockholders in Australian-listed department stores chain David Jones (DJs) will vote on 14 July 2014 on the takeover bid worth $A4 a share by South African retailer Woolworths. It needs 50% of investors to approve it and 75% of stocks to be voted in favour, and may need to rely on entrepreneur Solomon Lew. He has built a stake of at least 9.9% in DJs, and has extracted a promise from Woolworths to also buy his 11.8% holding in Country Road. Woolworths has 88% of that entity. Lew has made no comment on which way he will vote, while the Australian Securities & Investments Commission may challenge the Country Road side deal in the Federal Court

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, PREMIER INVESTMENTS LIMITED – ASX PMV, JUST JEANS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, OWNERSHIP MATTERS PTY LTD

3P Learning flunks first day on ASX – down 14pc

Original article by Paul Smith, Sally Rose
The Australian Financial Review – Page: 21 & 26 : 10-Jul-14

The initial public offering of 3P Learning on 9 July 2014 was a disappointment. Stock in the Mathletics and Reading Eggs educational software provider had been issued at $A2.50, but opened at $A2.39 before closing at just $A2.15. The 14% drop compared with one of 1.1% for the S&P/ASX 200 Index for the day. The float had been the second-largest ever in the Australian technology sector, and the eighth-largest overall for calendar 2014 so far. CEO Tim Power says 3P will concentrate on further expansion and innovation rather than the ups and downs of its share price

CORPORATES
3P LEARNING LIMITED – ASX 3PL, FREELANCER LIMITED – ASX FLN, XERO LIMITED – ASX XRO, ASX LIMITED – ASX ASX, PACT GROUP HOLDINGS LIMITED – ASX PGH, GDI PROPERTY GROUP – ASX GDI, COVER-MORE GROUP LIMITED – ASX CVO, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, DEALOGIC (AUSTRALIA) PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, HYPERION ASSET MANAGEMENT LIMITED