K: Financial and Insurance Services

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

Treasury sets the pace for $3.4b offer

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Original article by Simon Evans, Sarah Thompson
The Australian Financial Review – Page: 15 & 20 : 5-Aug-14

Shares in Treasury Wine Estates closed $A0.20 higher at $A5.15 on 4 August 2014, in response to a revised takeover bid. Private equity firms Kohlberg Kravis Roberts (KKR) and Rhone Capital are offering $A5.20 per share, compared with KKR’s initial offer of $A4.70. Treasury has invited the bidders to undertake non-exclusive due diligence, and wants them to conclude the process as quickly as possible

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, RHONE CAPITAL LLC, PENFOLDS WINES PTY LTD, WOLF BLASS WINES PTY LTD, LINDEMANS WINES PTY LTD, ROSEMOUNT ESTATES PTY LTD, WYNNS COONAWARRA ESTATE PTY LTD, FOSTER’S GROUP LIMITED

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

Job ads, buoyant retail raise pressure on rates

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Original article by Adam Creighton
The Australian – Page: 19 : 5-Aug-14

There is no clear consensus among economists on whether the Reserve Bank of Australia will move to lift or cut the official cash interest rate late in 2014. No change is expected at the board meeting on 5 August, but a number of economic indicators have created uncertainty about the longer-term picture. Retailing sector sales had been forecast to grow a subdued 0.3% during June, but instead rose 0.6% to $A23.2bn. It appears consumer confidence dented by the harsh federal Budget in May is starting to recover. Help-wanted advertising is also up 4% in annualised terms

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC AUSTRALIA HOLDINGS PTY LTD

Start-ups key as change batters the big four

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Original article by Damon Kitney
The Australian – Page: 15 : 4-Aug-14

Consultants at Ernst & Young and KPMG warn that large companies must seek strategic alliances with small start-ups in order to safeguard against digital disruption. A major sector in need of such an approach is that of banking in Australia, and the four main lenders are already facing competition by online payments businesses such as PayPal. However Brian Hartzer, CEO Australian financial services at Westpac Banking, argues the banks can themselves behave like start-ups. Kelly Bayer Rosmarin, group executive institutional banking and markets at Commonwealth Bank of Australia, also says they have an advantage in the shape of large stores of customer data

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PAYPAL INCORPORATED, AMAZON.COM INCORPORATED, KPMG, ERNST AND YOUNG

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

Banks may have to spin off trading

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Original article by John Kehoe, Jonathan Shapiro
The Australian Financial Review – Page: 1 & 10 : 4-Aug-14

Opinion is divided about the merits of restructuring banks to separate their retail and commercial banking arms from divisions such as insurance and funds management. David Murray, who is chairing the Australian Government’s inquiry into the financial system, has suggested that so-called "ring-fencing" should be examined in order to protect banks that are deemed "too big to fail". Similar laws have been introduced in the US and the UK, but Australian Bankers’ Association CEO Steve Munchenberg questions whether such reforms are needed in Australia

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, GREAT BRITAIN. DEPT OF THE TREASURY, JP MORGAN AND COMPANY INCORPORATED, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. FEDERAL RESERVE BOARD, MACQUARIE GROUP LIMITED – ASX MQG, SUNCORP GROUP LIMITED – ASX SUN, MOODY’S INVESTORS SERVICE INCORPORATED

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

Sharp end of PIN changes

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Original article by Shaun Drummond, Yolanda Redrup
The Australian Financial Review – Page: 6 : 1-Aug-14

Restaurant & Catering Australia CEO John Hart says the hospitality industry will incur higher costs due to the abolition of signatures for credit card transactions. He notes that most restaurants will need to buy additional mobile payment terminals in response to the PIN-only regime. Meanwhile, Melbourne restaurateur Eric Duong is concerned that older customers in particular may not have made the change to PINs

CORPORATES
RESTAURANT AND CATERING INDUSTRY ASSOCIATION OF AUSTRALIA INCORPORATED, MAN MO RESTAURANT, RETAIL FINANCE INTELLIGENCE PTY LTD, DAVID’S ZHOU ZHOU BAR AND ORIENTAL TEAHOUSE, TYRO PAYMENTS, PAYPAL INCORPORATED

Nurse injured in violent attack wins payout

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Original article by Nick Toscano
The Age – Page: 4 : 31-Jul-14

The Supreme Court of Victoria will hear a claim by the Victorian WorkCover Authority against Victoria Police. The workers’ compensation provider seeks to recover some of the $A500,000 it paid to a nurse permanently injured in a violent attack by a drug addict at Latrobe Regional Hospital. The employer and the police force have already struck an out-of-court settlement with the victim, and a factor was that three police officers allegedly did not properly restrain the attacker

CORPORATES
VICTORIA POLICE, VICTORIAN WORKCOVER AUTHORITY, LATROBE REGIONAL HOSPITAL PTY LTD, SUPREME COURT OF VICTORIA, AUSTRALIAN NURSING AND MIDWIFERY COUNCIL INCORPORATED, AUSTRALIAN NURSING FEDERATION