Lendlease and Vicinity both takeover targets, says JPM

Original article by Nick Lenaghan
The Australian Financial Review – Page: 31 : 23-Apr-19

JP Morgan’s Global REIT Radar report suggests that a sharp fall in the share prices of Lendlease and Vicinity Centres could make them potential takeover targets. Ben Brayshaw of JP Morgan says both stocks are currently trading well below the firm’s estimate of their net asset value. The report also notes that real estate investment trusts have delivered a total return of 18.5 per cent over the last year, while global equities have returned just 7.6 per cent.

CORPORATES
LEND LEASE GROUP LIMITED – ASX LLC, VICINITY CENTRES – ASX VCX, JP MORGAN AUSTRALIA LIMITED, CROWN ESTATE, MAURICE BLACKBURN PTY LTD, SUPREME COURT OF NEW SOUTH WALES

Japan Inc splashes out on Dulux

Original article by Perry Williams
The Australian – Page: 17 : 18-Apr-19

Directors of DuluxGroup have endorsed a cash offer of $9.80 per share from Japan-based Nippon Paint, which values the deal at $3.8bn. DuluxGroup CEO Patrick Houlihan says the deal will allow the Melbourne-based company to sell its products in more international markets, following the recent launch of its Selleys range in Indonesia. Nippon Paint has stressed that DuluxGroup will retain its branding and leadership team.

CORPORATES
DULUXGROUP LIMITED – ASX DLX, NIPPON PAINT, SELLEYS CHEMICAL COMPANY PTY LTD, PARCHEM CONSTRUCTION PRODUCTS PTY LTD, CRAIG AND ROSE, JAPAN POST COMPANY LIMITED, TOLL HOLDINGS LIMITED, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, ORICA LIMITED – ASX ORI

‘They’re all gamblers’: high-stakes Crown still in play

Original article by Sarah-Jane Tasker
The Australian – Page: 1 & 6 : 11-Apr-19

Shares in Crown Resorts fell 9.1 per cent to $12.77 on 10 April, after US-based Wynn Resorts withdrew from takeover talks. However, observers believe that Crown is open to other offers and that another bid from Wynn cannot be ruled out. Crown’s largest shareholder James Packer is said to be keen to exit the casinos business, with an industry observer suggesting that he would be a "willing seller" at around the price that had been proposed by Wynn.

CORPORATES
CROWN RESEARCH INSTITUTES, WYNN RESORTS LIMITED, WHITE FUNDS MANAGEMENT PTY LTD

Packer’s deal goes bust

Original article by Sarah-Jane Tasker, John Ferguson
The Australian – Page: 1 & 6 : 10-Apr-19

US-based Wynn Resorts has advised that it will not proceed with a potential takeover bid for Australian-listed Crown Resorts. The two groups are believed to have been holding confidential talks for several months, and Crown informed the ASX of the negotiations on 9 April. Wynn Resorts has cited the "premature disclosure" of these discussions for its decision to cease all negotiations with Crown. Businessman James Packer, who has a 46.1 per cent stake in Crown, would have emerged with a 10 per cent stake in Wynn Resorts if the deal had proceeded.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, WYNN RESORTS LIMITED

CBA’s Colonial buy cost shareholders $54b

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 17 : 9-Apr-19

The Commonwealth Bank of Australia paid $11 billion for Colonial in 2000, but fund manager Merlon Capital Partners contends that the purchase wasted over $50 billion in shareholder capital. Merlon argues that the CBA’s purchase of Colonial did not create value for its stockholders, and that it demonstrates the need for shareholders to have a greater say about large acquisitions. Merlon has previously been critical of AMP’s 2018 decision to sell its life insurance business.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL LIMITED, MERLON CAPITAL PARTNERS PTY LTD, AMP LIMITED – ASX AMP

Wesfarmers talks to Malaysia over Lynas

Original article by Paul Garvey
The Australian – Page: 17 & 20 : 28-Mar-19

Rare earths miner Lynas Corporation has rejected an unsolicited $1.5bn takeover bid from Wesfarmers. Lynas CEO Amanda Lacaze has also criticised Wesfarmers’ move to engage directly with the Malaysian government regarding Lynas’s processing plant in Kuantan, stating that the conglomerate cannot speak on behalf of the company. Meanwhile, stockbroking firm Morgans has cited factors such as the political risk in Malaysia for its decision to downgrade its recommendation on Wesfarmers shares from ‘add’ to ‘hold’.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, WESFARMERS LIMITED – ASX WES, MORGANS FINANCIAL LIMITED, GREENCAPE CAPITAL PTY LTD, CHALLENGER LIMITED – ASX CGF, CITIGROUP PTY LTD

Gindalbie accepts $39m takeover

Original article by Paul Garvey
The Australian – Page: 20 : 12-Mar-19

Directors of iron ore junior Gindalbie Metals have recommended that shareholders accept a $39m takeover offer from China-based Ansteel. Gindalbie and Ansteel are joint venture partners in the Karara magnetite mine in the Mid-West region of Western Australia, and Gindalbie wrote down the value of its 48 per cent stake in the project to zero in 2014. Gindalbie also intends to demerge its Coda Minerals subsidiary.

CORPORATES
GINDALBIE METALS LIMITED – ASX GBG, ANSHAN IRON AND STEEL COMPANY, CODA MINERALS LIMITED, ATLAS LEAD GENERATION PTY LTD, BCI MINERALS LIMITED – ASX BCI

Newcrest’s $1.1bn North American bet

Original article by Paul Garvey
The Australian – Page: 20 : 12-Mar-19

Newcrest Mining CEO Sandeep Biswas says more acquisitions are possible following an $US806.5m ($1.1bn) deal to acquire a 70 per cent stake in the Red Chris gold-copper mine in Canada. Red Chris is currently an open-cut mine, but it has the potential to yield significantly more gold and copper by using block caving. Newcrest is also widely considered to be a contender to acquire from Barrick Gold and Newmont Mining if their proposed merger proceeds.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, IMPERIAL METALS CORPORATION, NORTHERN STAR RESOURCES LIMITED – ASX NST, OCEANAGOLD CORPORATION – ASX OGC, EVOLUTION MINING LIMITED – ASX EVN, ST BARBARA LIMITED – ASX SBM

Will Rio take the plunge into M&A?

Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 1-Mar-19

Rio Tinto has signalled that it is open to acquisitions, but CEO Jean-Sebastien Jacques stresses that any deals must create value for shareholders. Ben Cleary of Tribeca Investment Partners has identified copper miner SolGold as a prime target for Rio Tinto, and he says other potential targets could include OZ Minerals and Freeport-McMoran. Glyn Lawcock of UBS cautions that the wrong acquisition could undo much of the progress Rio Tinto has made in restoring investors’ confidence in recent years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TRIBECA INVESTMENT PARTNERS PTY LTD, SOLGOLD PLC, OZ MINERALS LIMITED – ASX OZL, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, UBS HOLDINGS PTY LTD, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM

David Morgan reveals failed Westpac-CBA mega-merger

Original article by Tony Boyd
The Australian Financial Review – Page: 1 & 2 : 20-Feb-19

The official biography of former Westpac CEO David Morgan outlines the bank’s proposed merger with the Commonwealth Bank of Australia in 1989, when he was the head of institutional banking at Westpac. The merger ultimately failed to proceed due to disagreement over leadership of the new entity. Westpac CEO Bob Joss was to have been overlooked in favour of CBA CEO David Murray, with Joss to be given the role of vice-chairman in charge of restructuring. CBA directors were also against Morgan and Westpac CFO Pat Handley joining the board of the combined group.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BT FINANCIAL GROUP PTY LTD, DBS BANK LIMITED, ST GEORGE BANK LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN LABOR PARTY, ACTU, MORGAN STANLEY AUSTRALIA LIMITED, JP MORGAN AUSTRALIA LIMITED