K: Financial and Insurance Services

Canadian bank axes analysts in Newcrest fiasco

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Original article by Anthony Klan
The Australian – Page: 21 : 26-Jun-14

Newcrest Mining has agreed to pay a penalty of $A1.2m for selectively briefing analysts in late May 2013. The Australian Securities & Investments Commission told the Federal Court that the company breached its continuous disclosure obligations by not informing the wider market as well of its downgraded gold output figures, but the analysts were not to blame. However, Geoff Breen and Michael Orphanides as well as head of research Peter Main departed Royal Bank of Canada (RBC) in mid-2013, soon after it received the inside knowledge from Newcrest. The investment bank has declined to comment

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, ROYAL BANK OF CANADA, RBC CAPITAL MARKETS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CREDIT SUISSE AG, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, COLONIAL HOLDING COMPANY LIMITED – ASX CNG, MACQUARIE BANK LIMITED – ASX MBL

Nimble start-up challenges the big four

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Original article by Damon Kitney
The Australian – Page: 21 : 26-Jun-14

Technology company Nimble has raised $A10 million in new funding from Acorn Capital and Monash Investors. It specialises in providing small personal loans to creditworthy borrowers. It uses data analytics to reduce approval times. Australia’s big four banks are now under competitive pressure from small companies that use new technology to offer services such as payments, short-term lending, and peer-to-peer lending

CORPORATES
NIMBLE PTY LTD, ISELECT LIMITED – ASX ISU, ACORN CAPITAL INVESTMENT FUND LIMITED – ASX ACQ, MONASH INVESTORS PTY LTD, SEEK LIMITED – ASX SEK, SQUARE PEG CAPITAL PTY LTD, FACEBOOK INCORPORATED, SOCIETYONE AUSTRALIA PTY LTD, REINVENTURE GROUP PTY LTD

$200m peace offer for Lew

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Original article by Sue Mitchell, Sarah Thompson
The Australian Financial Review – Page: 1-Oct : 25-Jun-14

Australian retailing identity Solomon Lew in 1997 acquired a blocking stake of 11.8% in Country Road. In 2014, he has duplicated the move by building a holding of 9.9% in David Jones (DJs). The takeover suitor in both cases is South Africa’s Woolworths, which has now been forced by Lew’s tactics to buy him out of Country Road and to offer $A17 a share. This is an increase of nearly 400% from the on-market price in early 2014. In exchange Woolworths will also be able to move to full ownership of DJs. Insiders say Woolworths had been keen to take control of Country Road in any case

CORPORATES
COUNTRY ROAD LIMITED – ASX CTY, DAVID JONES LIMITED – ASX DJS, WOOLWORTHS HOLDINGS LIMITED, PREMIER INVESTMENTS LIMITED – ASX PMV, NM ROTHSCHILD AND SONS (AUSTRALIA) LIMITED, GILBERT AND TOBIN LAWYERS, GREENHILL AND COMPANY, ARNOLD BLOCH LEIBLER, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. TAKEOVERS PANEL, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN RETAIL INVESTMENTS PTY LTD, MIMCO PTY LTD, WITCHERY FASHIONS PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, TRENERY

How will Lachlan Murdoch and James Packer react to Ten bid?

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Original article by James Thomson
The Australian Financial Review – Page: 20 : 24-Jun-14

US-based Providence Equity Partners is said to be preparing for a possible takeover of Australian-listed free-to-air TV group Ten Network. The reactions to such a bid by the four main stockholders will vary. Lachlan Murdoch and James Packer have suffered substantial losses on their investments in the company, and may be content to depart despite having to sell at about $A0.245 a share when they had bought in at $A1.50. Equally relieved to exit may be mining heiress Gina Rinehart, whose limited media sector exposure also includes Fairfax Media. The most likely to keep the faith that Ten will be turned around is TV industry stalwart Bruce Gordon, who owns 15%

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, PROVIDENCE EQUITY PARTNERS INCORPORATED, ITV PLC, ITV NETWORK LIMITED, NEWS CORPORATION – ASX NWS, WIN TELEVISION PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BROADCASTING CORPORATION, SPECIAL BROADCASTING SERVICE (SBS)

Australian rally on Fed statements could be short-lived

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Original article by Sally Rose
The Australian Financial Review – Page: 13 and 22 : 20-Jun-14

Australia’s S&P/ASX 200 rose by 1.6 per cent on 19 June 2014, and the All Ordinaries Index was up 1.5 per cent. The bullish sentiment was prompted by indications that US interest rates are set to remain at a historic low in the near-term. Meanwhile, the Australian dollar rose to $US0.9423 and the yield on 10-year government bonds fell by two per cent. George Clapham of Arnhem Investment Management cautions that economic data in China will remain the key influence on the Australian sharemarket

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, ARNHEM INVESTMENT MANAGEMENT PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, BANK OF ENGLAND, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, WILSON HTM LIMITED, MLC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EUROPEAN CENTRAL BANK

Pendulum sways to ‘Yes’

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Original article by Robert Harley
The Australian Financial Review – Page: 34 : 20-Jun-14

Westfield Retail Trust investors are expected to approve a restructuring of the group at a meeting on 20 June 2014. A vote on the proposed deal was postponed earlier in the month, when 25.9 per cent of proxy votes rejected the plan to merge the trust with the Australasian property portfolio of Westfield Group. Westfield Retail securities closed $A0.04 higher at $A3.21 on 19 June

CORPORATES
WESTFIELD RETAIL TRUST – ASX WRT, WESTFIELD GROUP – ASX WDC, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, UNISUPER LIMITED, LEGG MASON ASSET MANAGEMENT AUSTRALIA LIMITED, COLONIAL FIRST STATE GROUP LIMITED, COLONIAL HOLDING COMPANY LIMITED – ASX CNG

Vote on hold as Lew lifts DJs stake

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Original article by Blair Speedy
The Australian – Page: 21 : 20-Jun-14

Australian-listed department stores chain David Jones (DJs) has informed the market that it has asked the Federal Court to delay the stockholder vote on the friendly takeover bid by Woolworths. The deal worth $A2.15bn with the South African suitor has been placed into jeopardy by revelations that retailing sector identity Solomon Lew now holds 9.89% of the target. There are fears his goal is to build a blocking stake, to force Woolworths into buying him out of Country Road. He owns 11.8% of that business and Woolworths close to 88%. The DJs investor ballot will now be held on 14 July 2014 rather than 30 June

CORPORATES
DAVID JONES LIMITED – ASX DJS, COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, FEDERAL COURT OF AUSTRALIA, ASX LIMITED – ASX ASX, OWNERSHIP MATTERS PTY LTD, KING AND WOOD MALLESONS

ASIC won’t act on FoFA changes

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Original article by Sally Patten
The Australian Financial Review – Page: 20 : 23-Jun-14

Both new regulations and legislative amendments will be used by the Australian Government to change some aspects of the Future of Financial Advice (FoFA) laws, effective 1 July 2014. However, there is resistance to the amendments in the Senate by the Australian Labor Party, Australian Greens and Palmer United Party. The Australian Securities & Investments Commission is currently not penalising any breaches of those sections of the FoFA laws that are to be repealed, and will maintain this approach if the deadline of 1 July is missed by the Federal Government

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN GREENS, PALMER UNITED PARTY, FINANCIAL SERVICES COUNCIL, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED

Ban on financial fees

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 and 4 : 20-Jun-14

The Australian Government will wind back key measures of the Future of Financial Advice reforms, including the requirement that financial planners must act in the best interest of clients. Planners will also be barred from receiving up-front or trailing commissions for providing general advice to clients, while the requirement that clients must "opt-in" to receive financial advice will also be scrapped

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIAN BROADCASTING CORPORATION, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN CONSUMERS’ ASSOCIATION, NATIONAL SENIORS AUSTRALIA LIMITED, COUNCIL ON THE AGEING

Super funds looking at 10pc-plus growth

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Original article by Clancy Yeates
The Australian Financial Review – Page: 20 : 20-Jun-14

Data from Chant West shows that the average Australian superannuation fund achieved a return of 1.1 per cent in May 2014, and 12.6 per cent in the first 11 months of the 2013-14 financial year. Director Warren Chant expects super funds to deliver a positive return for the fifth year in 2013-14, with a double-digit return likely for many funds. Shares, bonds and infrastructure are among the asset classes that have performed well in 2013-14

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, SUPERRATINGS PTY LTD