MERGERS AND ACQUISITIONS – AUSTRALIA

Southern Cross, Nine in $2.2bn merger talks

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Original article by Christine Lacy, Damon Kitney, Darren Davidson
The Australian – Page: 19 : 13-Nov-15

Nine Entertainment Company has held merger discussions with regional broadcaster Southern Cross Media Group, and sources have suggested that there is an even chance of a deal proceeding. The "reach rule" would prohibit a full merger at present, but the deal being discussed is said to involve Nine acquiring Southern Cross’ radio stations immediately. Nine would subsequently buy Southern Cross’s TV stations if and when cross-media ownership rules are relaxed.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, SOUTHERN CROSS AUSTEREO PTY LTD, NINE NETWORK AUSTRALIA LIMITED, MI9, NINEMSN PTY LTD, 2DAY FM AUSTRALIA PTY LTD, TRIPLE M CORPORATION PTY LTD, THE HIT NETWORK, SEVEN NETWORK LIMITED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, CVC ASIA PACIFIC (AUSTRALIA) PTY LTD, APOLLO GLOBAL MANAGEMENT LLC, OAKTREE CAPITAL MANAGEMENT LLC, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, LUMINIS PARTNERS PTY LTD

Asciano break-up ratings risk warning

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 23 : 12-Nov-15

Ports and rail group Asciano currently has a credit rating of "Baa2" with a negative outlook from Moody’s Investors Service. The ratings agency has indicated that Asciano’s credit rating could be downgraded if a proposed takeover and break-up of the group proceeds without a reduction in its debt. The Qube Holdings-led consortium is offering $A9.25 per share, and is hoping to trump the bid from Brookfield Infrastructure Partners.

CORPORATES
ASCIANO LIMITED – ASX AIO, MOODY’S INVESTORS SERVICE INCORPORATED, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, CANADA PENSION PLAN INVESTMENT BOARD, GLOBAL INFRASTRUCTURE PARTNERS, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, WESTBOURNE CREDIT MANAGEMENT, McMILLAN SHAKESPEARE LIMITED – ASX MMS, LIFESTYLE COMMUNITIES LIMITED – ASX LIC, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, MACQUARIE WEALTH MANAGEMENT, AURIZON HOLDINGS LIMITED – ASX AZJ

Asciano weighs up ‘doability’ of Qube bid

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Original article by Jenny Wiggins, Sarah Thompson, Anthony Macdonald, Patrick Hatch
The Australian Financial Review – Page: 17 & 22 : 11-Nov-15

Shares in port and rail group Asciano closed $A0.26 higher at $A8.99 in response to a takeover approach from a consortium led by Qube Holdings. The indicative cash and scrip bid values Asciano at $A9.25 per share, while the bid from Brookfield Infrastructure Partners is currently valued at $A9.22 per share. The Qube consortium also includes Global Infrastructure Partners and the Canada Pension Plan Investment Board. The consortium is seeking due diligence, and could make a formal offer by mid-December 2015.

CORPORATES
ASCIANO LIMITED – ASX AIO, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, GLOBAL INFRASTRUCTURE PARTNERS, CANADA PENSION PLAN INVESTMENT BOARD, PATRICK CORPORATION LIMITED, PACIFIC NATIONAL PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Hartigan denies friction with Seven

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Original article by Max Mason
The Australian Financial Review – Page: 31 : 11-Nov-15

Prime Media Group’s 11.4 per cent stakeholder Seven Group Holdings voted against the regional broadcaster’s remuneration report at its 2015 AGM. The "two strikes" rule will apply at the 2016 AGM after more than 34 per cent of Prime’s shareholders rejected the report. Meanwhile, Prime CEO Ian Audsley said the group could be acquired or seek to buy assets itself if there are changes to cross-media ownership laws. He added that Prime may be interested in buying radio assets but is unlikely to expand into regional print newspapers.

CORPORATES
PRIME MEDIA GROUP LIMITED – ASX PRT, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIAN LABOR PARTY, TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOX SPORTS AUSTRALIA PTY LTD, V8 SUPERCARS AUSTRALIA PTY LTD, AUSTRALIAN FOOTBALL LEAGUE

Australian M&A fires up as global uncertainty weighs on executives

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 16 : 9-Nov-15

A global survey of senior executives by EY Oceania shows that more than 50 per cent of Australian companies intend to pursue acquisitions in the next 12 months, compared with 44 per cent in the previous six-monthly survey. Mergers and acquisitions activity in Australia is particularly strong in sectors such as food services, consumer retailing and life sciences. Meanwhile, 64 per cent of respondents in Australia and New Zealand, plus 74 per cent globally, expect equity valuations to remain stable.

CORPORATES
ERNST AND YOUNG, WOODSIDE PARK STUD PTY LTD, OIL SEARCH LIMITED – ASX OSH, ASCIANO LIMITED – ASX AIO, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, CREDIT SUISSE (AUSTRALIA) LIMITED

Corrigan swoops on Asciano

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Original article by Jenny Wiggins, Anthony Macdonald, Sarah Thompson
The Australian Financial Review – Page: 1 & 12 : 30-Oct-15

Brookfield Infrastructure Partners’ $A8.9bn takeover bid for Asciano has received a setback after Qube Holdings lifted its stake in the target from around five per cent to 19.9 per cent on 29 October 2015. Qube paid $A8.80 per share, compared with Asciano’s closing price of $A7.56. Qube has declined to comment on its intentions regarding Asciano, but it opposes the Brookfield bid and is believed to be planning to break up Asciano and retain its ports division.

CORPORATES
ASCIANO LIMITED – ASX AIO, QUBE HOLDINGS LIMITED – ASX QUB, BROOKFIELD INFRASTRUCTURE PARTNERS LP, PATRICK CORPORATION LIMITED, PACIFIC NATIONAL PTY LTD, UBS HOLDINGS PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, RBC CAPITAL MARKETS, CREDIT SUISSE (AUSTRALIA) LIMITED

Botten unfazed by overtures from Woodside

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 29-Oct-15

Oil Search CEO Peter Botten says the group’s healthy balance sheet and strong growth prospects means it can focus on expanding its business rather than the spurned takeover offer from Woodside Petroleum. Botten adds that Oil Search would be open to a takeover offer that was appropriately priced, and he anticipates further merger activity in the oil and gas sector. He also forecasts that the oil price will remain at around its current level in the near-term.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, MARUBENI CORPORATION

Woodside claims misreporting, keeps door open for Oil Search

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 : 28-Oct-15

Woodside Petroleum is believed to have no immediate plans to sweeten its $A11.6bn takeover offer for Oil Search, but it may be amenable to doing so. CEO Peter Coleman has indicated that the offer is "fair and fully priced", although Woodside has advised that Dow Jones Newswires incorrectly reported that he had also said that Woodside has no intention of increasing the offer.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, DOW JONES NEWSWIRES, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, KIMA CAPITAL

Santos rejects Scepter’s $7bn takeover bid

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Original article by Matt Chambers
The Australian – Page: 21 & 24 : 23-Oct-15

Shares in oil and gas producer Santos closed 16 per cent higher at $A6.32 on 22 October 2015, in response to a takeover approach from Scepter Partners. The Bermuda-based private equity firm’s $A7.14bn non-binding offer is pitched at $A6.88 per share, which has been described as "opportunistic" by Santos. Romano Sala Tenna of Katana Asset Management agrees with this assessment, although Mark Samter of Credit Suisse believes that Scepter’s offer represents good value for Santos investors.

CORPORATES
SANTOS LIMITED – ASX STO, SCEPTER PARTNERS, KATANA ASSET MANAGEMENT LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, HSBC HOLDINGS PLC, GLENCORE PLC, XSTRATA PLC, VODAFONE GROUP PLC, BLACKSTONE ADVISORY PARTNERS ASIA, CITIGROUP PTY LTD

Total, Petronas on lookout for local bargains

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 19-Oct-15

France-based Total’s investments in Australia include stakes in the Gladstone and Ichthys LNG projects. Australian MD Petter Undem says Total is interested in acquisitions in the local oil and gas sector, including a desire to become the operator of an LNG project rather than just a minority stakeholder. Malaysia-based Petronas – which also has a stake in the Gladstone project – has indicated that it too is keen to pursue acquisitions in Australia.

CORPORATES
TOTAL SA, TOTAL E&P AUSTRALIA, PETROLIAM NASIONAL BERHAD, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, INPEX CORPORATION, ICHTHYS LNG PTY LTD, INTEROIL CORPORATION, CENTRAL PETROLEUM LIMITED – ASX CTP, PROGRESS ENERGY INCORPORATED