INVESTMENTS

Brookfield pressed on Asciano bid

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Original article by Perry Williams, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 10 : 2-Jul-15

Australian-listed transport infrastructure group Asciano has advised that Canada’s Brookfield Asset Management made an indicative takeover offer on 26 June 2015. The $A9bn non-binding bid values the target at $A9.05 per share, but Jakov Males of UBS Global Asset Management believes that an offer of around $A10 per share would be more appropriate. The proposed takeover bid comprises a cash component and shares in Brookfield Infrastructure Partners.

CORPORATES
ASCIANO LIMITED – ASX AIO, BROOKFIELD ASSET MANAGEMENT INCORPORATED, BROOKFIELD INFRASTRUCTURE PARTNERS LP, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, FIDELITY INVESTMENTS AUSTRALIA LIMITED, SABMILLER PLC, FOSTER’S GROUP LIMITED, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, MULTIPLEX LIMITED, PACIFIC NATIONAL PTY LTD, PATRICK CORPORATION LIMITED, COLONIAL FIRST STATE GROUP LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, GRESHAM PARTNERS LIMITED, CITIGROUP INCORPORATED

Kathmandu shareholders wary

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 1-Jul-15

Shares in adventurewear retailer Kathmandu Holdings closed $A0.32 higher at $A1.57 on 30 June 2015, in response to a takeover bid from New Zealand-listed Briscoe Group. Briscoe, which is headed by Rod Duke, increased its stake in Kathmandu to 19.9 per cent on 29 June, and its bid values the target at about $A324m. Some Kathmandu shareholders have described the bid as "opportunistic". Briscoe’s retail business comprises homewares, sporting goods and gift stores.

CORPORATES
KATHMANDU HOLDINGS LIMITED – ASX KMD, BRISCOE GROUP LIMITED, BRISCOES, REBEL SPORT LIMITED, LIVING AND GIVING LIMITED, MILFORD ASSET MANAGEMENT LIMITED, CYAN INVESTMENT MANAGEMENT PTY LTD, PUMPKIN PATCH LIMITED, MACPAC WILDERNESS EQUIPMENT, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, QUADRANT PRIVATE EQUITY PTY LTD, GOLDMAN SACHS ASSET MANAGEMENT

TripAdvisor for property agents raises $6 million

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Original article by Paul Smith
The Australian Financial Review – Page: 22 : 30-Jun-15

South Africa-based Hollard Investments will provide some $A6m of funding to real estate website OpenAgent.com.au and gain a seat on the start-up’s board. The website allows consumers to rate the performance of real estate agents and compare statistics on property sales. OpenAgent.com.au has previously raised $A2m from a number of angel investors.

CORPORATES
OPENAGENT.COM.AU, HOLLARD INVESTMENTS BV, TRIPADVISOR LLC, TRULIA INCORPORATED, McKINSEY AND COMPANY, HOLLARD FINANCIAL SERVICES PTY LTD, GREENSTONE LIMITED

Qantas cash for Jetstar

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 : 29-Jun-15

The Jetstar Japan joint venture between Qantas and Japan Airlines is believed to have a cash burn rate of about Y700m a month. It is also said to have cash holdings of around Y4bn. Meanwhile, Qantas will invest an additional Y2bn ($A21m) in the budget carrier in 2015, as part of a 2014 deal with its joint venture partner to collectively invest another Y11bn in the business in two instalments. Jetstar Japan posted a loss of Y11.1bn in 2013-14.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JAPAN AIRLINES COMPANY LIMITED, MITSUBISHI CORPORATION, CENTURY TOKYO LEASING CORPORATION, JETSTAR JAPAN, JETSTAR HONG KONG AIRWAYS LIMITED, CISCO SYSTEMS INCORPORATED

DJs set to join great Aussie food fight

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 22 : 25-Jun-15

South Africa-based Woolworths Holdings is believed to be planning to build a presence in Australia’s food and grocery sector, via its David Jones subsidiary. The group intends to revamp the food halls in David Jones department stores, and the strategy may also include establishing stand-alone food stores to compete with local grocery retailers Coles and Woolworths Limited. Meanwhile, Woolworths Holdings is said to be looking at selling two of its stores in the Melbourne and Sydney CBDs.

CORPORATES
WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, THOMAS DUX GROCER, JONES THE GROCER, MARKS AND SPENCER PLC, NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, COUNTRY ROAD LIMITED, JP MORGAN AND COMPANY INCORPORATED, FOODCHAIN BY DAVID JONES

Australia languishes in bottom five

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 24-Jun-15

Global asset managers are bearish about the outlook for returns from Australian shares over the next three years, according to a report commissioned by Principal Global Investors. The report’s author, Amin Rajan, says the survey shows that markets in Russia, Australia, Latin America, Canada and Eastern Europe will deliver the worst returns over this period, while the best returns will be achieved by the US, India, Japan, so-called frontier markets and Asia.

CORPORATES
PRINCIPAL GLOBAL INVESTORS, UNITED STATES. FEDERAL RESERVE BOARD

Buffett to play on the ASX

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 13 : 17-Jun-15

Insurance Australia Group (IAG) shares rallied on 16 June 2015 in response to a deal for US investment guru Warren Buffett to acquire a 3.7 per cent stake in the general insurer for $A500m. As part of the deal, Buffett’s Berkshire Hathaway will be paid 20 per cent of IAG’s annual revenue for the next decade, which will be reinvested in a number of large Australian-listed companies. Buffett has indicated that bank stocks may be included in the portfolio.

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, BERKSHIRE HATHAWAY INCORPORATED, CREDIT SUISSE (AUSTRALIA) LIMITED, PETERS MACGREGOR CAPITAL MANAGEMENT PTY LTD, WELLS FARGO BANK, BANK OF AMERICA CORPORATION

Pockets full of dollars: M&A rise for Japan

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 16-Jun-15

Corporate Japan is becoming increasing active in global mergers and acquisitions in 2015. Data from Dealogic shows that the value of such deals has topped $US50bn to date. The CEO of ANZ Bank’s Japanese operations, Peter Davis, expects the nation’s financial services providers to seek further acquisition opportunities in Australia. Meanwhile, he notes that relatively few Australian companies are pursuing growth in Japan.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DEALOGIC HOLDINGS PLC, TOKIO MARINE AND FIRE INSURANCE COMPANY LIMITED, HCC INSURANCE, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, THE DAI-ICHI MUTUAL LIFE INSURANCE COMPANY LIMITED, TAL LIMITED, NIPPON LIFE INSURANCE COMPANY LIMITED, DBS GROUP HOLDINGS LIMITED, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, MIZUHO BANK LIMITED, SUMITOMO MITSUI BANKING CORPORATION, LEND LEASE GROUP LIMITED – ASX LLC, MITSUI AND COMPANY LIMITED, SUMITOMO CORPORATION, MARUBENI CORPORATION, MITSUBISHI CORPORATION

Pressure to relax tax hit on foreigners

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Original article by James Eyers
The Australian Financial Review – Page: 15 : 12-Jun-15

Australia, New Zealand, Singapore, Thailand, South Korea and the Philippines have agreed to participate in the Asia Region Funds Passport initiative. Australia’s Assistant Treasurer Josh Frydenberg hopes to convince Japan to sign up as well. However, Australia may come under pressure to reduce the withholding tax rate on the income of foreign investors, amid concerns that it is a deterrent for offshore investors. The Financial Services Council advocates reducing the tax from 15 per cent to five per cent for investments made via the Funds Passport.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, ASIA-PACIFIC ECONOMIC CO-OPERATION, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, JAPAN. FINANCIAL SERVICES AGENCY, NIKKO ASSET MANAGEMENT GROUP, PRICEWATERHOUSECOOPERS

Recall sure on takeover bid

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Original article by Tim Binsted, James Thomson
The Australian Financial Review – Page: 15 : 10-Jun-15

Recall Holdings’ shares closed 3.5 per cent higher at $A7.27 on 9 June 2015, after the records management group’s board accepted a takeover offer from US-based Iron Mountain. The deal was endorsed after Iron Mountain added a cash component of $A0.50 per share to its offer of 0.1722 of its shares for each Recall share. Recall CEO Doug Pertz expects the revised deal to receive the backing of shareholders.

CORPORATES
RECALL HOLDINGS LIMITED – ASX REC, IRON MOUNTAIN INCORPORATED, GREENCAPE CAPITAL PTY LTD