K: Financial and Insurance Services

M&A deals to outpace IPOs in 2015

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Original article by Sally Rose
The Australian Financial Review – Page: 11 & 20 : 6-Jan-15

Australia boasted more than $US16.21bn ($A20bn) worth of IPOs in 2014. Data from Dealogic shows that Macquarie Group handled some $US4.169bn worth of IPOs, ahead of UBS with $US2.52bn. Medibank Private dominated IPO activity in 2014, and Hugh Falcon of Macquarie expects float activity to be strong again in 2015. Simon Cox of UBS forecasts that investors will be more selective about the IPOs they back in 2015

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, DEALOGIC (AUSTRALIA) PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, HEALTHSCOPE LIMITED – ASX HSO, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO, GENESIS ENERGY LIMITED – ASX GNE, ESTIA HEALTH LIMITED – ASX EHE, ASALEO CARE LIMITED – ASX AHY, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA, ROYAL DUTCH SHELL PLC, WOODSIDE PETROLEUM LIMITED – ASX WPL

Debt soars on the home front

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Original article by David Uren
The Australian – Page: 2 : 5-Jan-15

A report from the Reserve Bank shows that Australia’s total housing debt now exceeds total household income by 39 per cent. This compared with a differential of just 29 per cent prior to the global financial crisis (GFC). Meanwhile, the interest paid on mortgage loans now accounts for about 7.2 per cent of household income, down from nearly 11 per cent prior to the GFC. The figures also show that total household assets significantly exceed household disposable income

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Lindt siege payouts may depend on terrorist decision

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Original article by Mathew Dunckley, Lisa Visentin
The Australian Financial Review – Page: 3 : 5-Jan-15

The Australian Reinsurance Pool Corporation is empowered by law to gauge the losses incurred by businesses in a terrorism event. It can also, if appropriate, reduce the liability of insurance companies in such cases, and providers including Insurance Australia Group are waiting for a decision by the Federal Government on the 15-16 December 2014 siege at the Lindt Cafe in Sydney’s Martin Place. Some small businesses have lodged claims under optional business disruption clauses, and will need to find out whether the siege is indeed deemed a terrorist act

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, AUSTRALIAN REINSURANCE POOL CORPORATION, AUSTRALIA. DEPT OF THE TREASURY, LINDT AND SPRUNGLI (AUSTRALIA) PTY LTD, AUSTRALIAN NATIONAL RETAILERS ASSOCIATION LIMITED, AUSTRALIAN RETAILERS ASSOCIATION, CGU INSURANCE AUSTRALIA LIMITED, LUMLEY INSURANCE GROUP LIMITED, WFI INSURANCE

Rio Tinto primed for $5b buyback

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 5-Jan-15

Credit Suisse’s Paul McTaggart suggests that Rio Tinto may pursue an on-market share buyback worth up to $US4bn ($A5bn). He says the resources group could potentially reveal plans for a buyback in February 2015, while Glyn Lawcock of UBS believes that any such buyback will be worth between $US2bn and $US3bn. Both mining analysts also expect Rio Tinto to increase its underlying dividend. The dividend payout ratio was 35 per cent in calendar 2013

CORPORATES
RIO TINTO LIMITED – ASX RIO, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, GLENCORE PLC, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE

Sutton to take helm at BoQ

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Original article by Tony Boyd, Ruth Liew, Sarah Thompson
The Australian Financial Review – Page: 1 & 4 : 5-Jan-15

Sources at the Bank of Queensland (BoQ) have indicated that Jon Sutton will become the permanent successor to former CEO Stuart Grimshaw. Sutton has been acting CEO since August 2014, and joined BoQ in July 2012. His previous roles have included the MD of Bankwest and the executive GM of Commonwealth Bank Agribusiness. BoQ increased its cash profit by 20 per cent in fiscal 2014, to $A301.2m. Its share price has gained around 60 per cent over the last two years

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, BANK OF WESTERN AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SUNCORP GROUP LIMITED – ASX SUN, ST GEORGE BANK LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EZCORP INCORPORATED, VIRGIN MONEY (AUSTRALIA) PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, INVESTEC BANK (AUSTRALIA) LIMITED

Who’ll pick next year’s best stocks: fundies or brokers?

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 16 : 19-Dec-14

Fund managers and stockbrokers have issued lists of the most promising stocks among Australian-listed companies. The most popular is Aurizon. It appears on many lists of the best shares. Fund managers avoid consumer stocks such as Flight Centre Travel, Myer Holdings, JB Hi-Fi, Metcash and Harvey Norman. Stockbrokers expect a rebound in mining stocks such as Rio Tinto, BHP Billiton, Iluka Resources and Oil Search

CORPORATES
AURIZON HOLDINGS LIMITED – ASX AZJ, CHANT WEST FINANCIAL SERVICES PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, MYER HOLDINGS LIMITED – ASX MYR, JB HI-FI LIMITED – ASX JBH, METCASH LIMITED – ASX MTS, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, CROWN RESORTS LIMITED – ASX CWN, ARISTOCRAT LEISURE LIMITED – ASX ALL, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, ILUKA RESOURCES LIMITED – ASX ILU, OIL SEARCH LIMITED – ASX OSH, FAIRFAX MEDIA LIMITED – ASX FXJ, PERPETUAL LIMITED – ASX PPT, STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED

Treasury experts $290bn wide of the mark on budget forecasts

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Original article by David Uren
The Australian – Page: 1 : 18-Dec-14

Every single one of the Australian Treasury Department’s four-year forecasts in Budget estimates since 2010 has had to be downgraded later on. The total amount involved is $A290bn, and the poor track record casts doubt as well on the latest prediction, made in the December 2014 Mid-Year Economic and Fiscal Outlook, that a surplus will be restored in 2019-20. In the agency’s defence, Deloitte Access Economics’ Chris Richardson notes that reliable forecasts have become very hard to achieve due to the nation’s exposure to commodity export markets for coal, iron ore and LNG

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE

Ten’s fate in reclusive billionaire’s hands

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Original article by Darren Davidson
The Australian – Page: 17 : 18-Dec-14

Takeover target Ten Network staged its AGM on 17 December 2014, which was attended by 15% stakeholder Bruce Gordon. He is the largest individual investor in the free-to-air TV group, which has received an offer worth $A590m or $A0.23 a share from pay TV provider Foxtel and US ally Discovery Communications. Other major stockholders who would need to support the deal are mining heiress Gina Rinehart with 10%, as well as respective News Corporation and Crown ­Resorts chairs Lachlan Murdoch and James Packer. Possible rival suitors for Ten are Anchorage Capital and Saban Capital

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, ANCHORAGE CAPITAL PARTNERS PTY LTD, SABAN CAPITAL GROUP INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, CROWN RESORTS LIMITED – ASX CWN

Rouble rout sends Aussie on the slide

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Original article by Vesna Poljak
The Australian Financial Review – Page: 1 & 10 : 18-Dec-14

The Australian dollar reached an intra-day low of $US0.8166 on 17 December 2014. The bearish sentiment toward the commodity currency was prompted by the continued selldown of Russia’s rouble, which has shed about 15 per cent in recent days. The Australian dollar’s continued weakness may be welcomed by the Reserve Bank, which have been talking down the currency for some time. However, Stephen Halmarick of Colonial First State Global Asset Management says this could mean that interest rate cuts in 2015 may not be necessary

CORPORATES
RESERVE BANK OF AUSTRALIA, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF NEW ZEALAND, STANDARD AND POOR’S ASX 200 INDEX, WOODSIDE PETROLEUM LIMITED – ASX WPL, RIO TINTO LIMITED – ASX RIO, OOH!MEDIA LIMITED – ASX OML, LATAM AUTOS LIMITED – ASX LAA, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE

oOh!Media IPO more of an oh-oh than a go-go

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Original article by Jared Lynch, Sally Rose
The Australian Financial Review – Page: 16 : 18-Dec-14

Shares in oOh!Media closed 1.6 per cent below the issue price of $A1.93 when the stock debuted on the Australian sharemarket on 17 December 2014. Shares in the outdoor advertising group listed at $A1.80, following a $A168.8m IPO by CHAMP Private Equity. The firm has retained a 32.2 per cent stake in oOh!Media, while WPP has an 8.6 per cent stake

CORPORATES
OOH!MEDIA LIMITED – ASX OML, CHAMP PRIVATE EQUITY PTY LTD, CASTLE HARLAN AUSTRALIAN MEZZANINE PARTNERS PTY LTD, WPP GROUP PLC, EYE CORP LIMITED, TEN NETWORK HOLDINGS LIMITED – ASX TEN