K: Financial and Insurance Services

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

Scales tipped in favour of $400m Huon IPO

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Original article by Bridget Carter
The Australian – Page: 18 : 29-Sep-14

Huon Aquaculture, which has a share of 40% of the salmon market in Australia, is staging an IPO worth more than $A400m. Simon Marais, MD of fund management firm Allan Gray Australia, notes that with Tassal commanding 50% the industry is a virtual duopoly, and this will underpin good earnings prospects for Huon. However there are some doubts by others, based on the long maturation period of three years for salmon stocks. Also planning a float is jewellery company Lovisa

CORPORATES
TASSAL GROUP LIMITED – ASX TGR, HUON AQUACULTURE COMPANY PTY LTD, LOVISA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, PETUNA AQUACULTURE PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, MORGANS FINANCIAL LIMITED

Skin cancer drug developer plans to list

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Original article by Sally Rose
The Australian Financial Review – Page: 19 : 29-Sep-14

Melbourne-based Ascend Biopharmaceuticals will offer its shares at $A0.35 in an IPO that aims to raise between $A9m and $A11m. Proceeds of the float will be used to finance clinical trials of drugs that are intended to treat skin cancer and breast cancer. Ascend shares are slated to list on the Australian sharemarket on 14 November 2014

CORPORATES
ASCEND BIOPHARMACEUTICALS LIMITED, ONYVAX, ALCHEMIA LIMITED – ASX ACL, AMRAD CORP LIMITED, F HOFFMAN-LA ROCHE LIMITED, F HOFFMAN-LA ROCHE AG, IMMATICS, LODGE CORPORATE PTY LTD, TRANSGENE

Medibank flags cost cuts after float

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Original article by Jessica Gardner, Georgia Wilkins
The Australian Financial Review – Page: 1 & 6 : 29-Sep-14

Retail investors can pre-register for the upcoming sharemarket float of Medibank Private, which is expected to be Australia’s largest IPO since QR National in 2010. The Federal Government has indicated that Medibank customers who pre-register will be given priority when shares are allocated in the IPO, although they will not be given any free shares in the health insurer. Meanwhile, Medibank CEO George Savvides says the health fund will seek to reduce costs following the IPO

CORPORATES
MEDIBANK PRIVATE LIMITED, AUSTRALIA. DEPT OF FINANCE, AMP LIMITED – ASX AMP, NIB HOLDINGS LIMITED – ASX NHF, NRMA LIMITED, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, AURIZON HOLDINGS LIMITED – ASX AZJ, TELSTRA CORPORATION LIMITED – ASX TLS, MORNINGSTAR PTY LTD, COMMUNITY AND PUBLIC SECTOR UNION

Sydney’s financial dreams fall flat as Asian cities climb ranks

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 26-Sep-14

The importance of Sydney as an international financial centre is diminishing, while big Asian cities are becoming more important. The Global Financial Centres Index, published by the Z/Yen Group, ranks Sydney 23th and Melbourne 24th. Sydney was ranked ninth in 2007. More must be done to strengthen the Australian funds management industry. The Financial Services Council supports the introduction of an investment manager regime which offers tax incentives to foreign investors

CORPORATES
FINANCIAL SERVICES COUNCIL, Z/YEN GROUP LIMITED

Medibank Private’s $4bn float is given a clean bill of health

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Original article by Michael Bennet
The Australian – Page: 21 : 26-Sep-14

Morningstar is upbeat about Australia’s private health insurance sector, and believes that Medibank Private has scope to increase its margins and profits as a listed company. The independent research firm says investors should pre-register for the Medibank prospectus. Brokers will begin marketing the $A4bn-plus IPO to fund managers in late September 2014

CORPORATES
MEDIBANK PRIVATE LIMITED, MORNINGSTAR PTY LTD, BUPA AUSTRALIA PTY LTD, NIB HOLDINGS LIMITED – ASX NHF, HOSPITAL BENEFIT FUND OF WA INCORPORATED, HBF HEALTHFUNDS INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, DEUTSCHE BANK AG

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

Investors ‘too bold’

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Original article by Max Mason
The Australian Financial Review – Page: 33 : 25-Sep-14

Financial markets anticipate that Australian companies will achieve eight per cent growth in earnings per share in 2014-15. However, Matt Sherwood of Perpetual believes that this may be too optimistic, noting that the economy is forecast to expand by just 4-5 per cent. Meanwhile, BT Investment Management is bullish about Australian shares, and expects stocks to deliver an annual return of 10 per cent over five years

CORPORATES
PERPETUAL LIMITED – ASX PPT, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, DELTEC INTERNATIONAL GROUP, RESERVE BANK OF AUSTRALIA

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