MERGERS AND ACQUISITIONS – AUSTRALIA

Murdoch tightens Ten grip

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 8 : 16-Jun-15

Pay-TV group Foxtel will acquire a stake of around 15 per cent in the Ten Network, paying $A0.15 per share, which equates to about $A77m. Ten shareholders will also be offered additional stock at $A0.15, with the free-to-air broadcaster raising $A154m in total via the share placement. Meanwhile, Ten will take a 24.99 per cent stake in Foxtel’s Multi Channel Network advertising sales company, which will in turn merge with Ten’s advertising department.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, MULTI CHANNEL NETWORK PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, REA GROUP LIMITED – ASX REA, SKY PLC, 20TH CENTURY FOX INCORPORATED, FOX SPORTS AUSTRALIA PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, SMI MEDIA INCORPORATED

Amcom, Vocus beat TPG to win merger vote

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Original article by David Ramli
The Australian Financial Review – Page: 8 : 16-Jun-15

TPG Telecom’s ploy to block a merger between Amcom Telecommunications and Vocus Communications by building a 19.9 per cent stake in the former has failed. The $A1.2bn deal was endorsed by Amcom shareholders on 15 June 2015, with more than 90 per cent of proxy votes backing the deal. Vocus CEO James Spenceley notes that more than 97 per cent of shareholders turned out to vote on the merger. TPG will emerge with a stake of about nine per cent in the merged entity.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, AMCOM TELECOMMUNICATIONS LIMITED – ASX AMM, VOCUS COMMUNICATIONS LIMITED – ASX VOC, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD

Competition concerns over TPG bid for iiNet

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Original article by David Ramli
The Australian Financial Review – Page: 13 : 12-Jun-15

The Australian Competition & Consumer Commission (ACCC) has postponed a decision on TPG Telecom’s takeover bid for iiNet until 20 August 2015. The ACCC has expressed concern that the $A1.56bn deal may result in a significant reduction in competition in the broadband sector. It has also suggested that the deal could result in an increase in the cost of internet access and reduced customer service for clients of the merged entity.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, IINET LIMITED – ASX IIN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD, FOXTEL MANAGEMENT PTY LTD, AUSTAR UNITED COMMUNICATIONS LIMITED

M&A outlook is optimistic

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 10-Jun-15

Data from Dealogic shows that some $US59.3bn ($A77.6bn) worth of mergers and acquisitions have been announced in Australia so far in 2015. This includes $US15.1bn worth of offshore deals by local companies. Anthony Sweetman of UBS is upbeat about the outlook for M&A activity in the second half of 2015, while Michael Barker of law firm King & Wood Mallesons also anticipates a bullish M&A market in the second half.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, UBS HOLDINGS PTY LTD, KING AND WOOD MALLESONS, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, INDEPENDENCE GROUP NL – ASX IGO, SIRIUS RESOURCES NL – ASX SIR, EVOLUTION MINING LIMITED – ASX EVN, BARRICK GOLD CORPORATION, GE CAPITAL AUSTRALIA, ESANDA FINANCE CORPORATION LIMITED, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE CAPITAL PTY LTD, GRANT SAMUEL AND ASSOCIATES PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL

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

Iron Mountain sweetens Recall bid

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Original article by Tim Binsted
The Australian Financial Review – Page: 22 : 9-Jun-15

Recall Holdings CEO Doug Pertz believes that the revised takeover offer from US-based Iron Mountain is in the best interests of shareholders. Iron Mountain has added a cash component of $A0.50 per share to its offer of 0.1722 of its shares for each Recall share. Meanwhile, the suitor has upgraded its estimate of the likely synergies from the merger to at least $US155m ($A202m). Recall shares closed at $A7.02 on 5 June 2015.

CORPORATES
RECALL HOLDINGS LIMITED – ASX REC, IRON MOUNTAIN INCORPORATED

Glencore still harbours desires for Rio Tinto

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 5-Jun-15

A merger with Rio Tinto remains on the agenda for Glencore, although the group has indicated that it would also favour acquiring Rio’s iron ore or coal divisions. Peter Freyberg, the head of Glencore’s coal division, has highlighted the potential synergies arising from thermal coal acquisitions or joint ventures in the Hunter Valley region of New South Wales.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, PEABODY ENERGY AUSTRALIA COAL PTY LTD, BHP BILLITON LIMITED – ASX BHP, THE MELBOURNE MINING CLUB

China scopes local iron ore

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Original article by Tess Ingram
The Australian Financial Review – Page: 11 : 2-Jun-15

The iron ore price is trading at about $US63 per tonne, having shed nearly 50 per cent in the last year. Adam Handley of law firm Minter Ellison notes that the sharp fall in the price of the steel input has prompted Chinese companies to consider mergers and acquisitions in Australia, as well as debt and equity deals with embattled producers. He adds that Chinese investors have become more willing to pursue hostile takeovers.

CORPORATES
MINTER ELLISON, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIC LIMITED, SHANGHAI BAOSTEEL GROUP CORPORATION, RECORD POINT PTY LTD, SINO IRON PTY LTD, CITIGROUP PTY LTD, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR, ARRIUM LIMITED – ASX ARI, CLIFFS NATURAL RESOURCES INCORPORATED, GINDALBIE METALS LIMITED – ASX GBG, MOUNT GIBSON IRON LIMITED – ASX MGX, MINERAL RESOURCES LIMITED – ASX MIN

Blackley back on board for SCM M&A bonanza

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Original article by Dominic White
The Australian Financial Review – Page: 35 : 1-Jun-15

Southern Cross Media Group chairman Peter Bush expects mergers in Australia’s media sector if cross-media ownership laws are changed. He says the industry expertise of new CEO Grant Blackley will be an asset when dealing with the new media landscape. Bush adds that one of Blackley’s key tasks will be to assess the group’s "peak value". Blackley is a former CEO of the Ten Network.

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, TEN NETWORK HOLDINGS LIMITED – ASX TEN, FREE TV AUSTRALIA LIMITED, KEYSTONE GROUP PTY LTD

Macquarie, Domino’s top in M&A value

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 23 : 29-May-15

Intralinks and the Cass Business School have released a report which examined more than 265,000 mergers and acquisitions deals globally over two decades. Some 82 of the companies that were regarded as being excellent corporate portfolio managers are based in Australia. They include Macquarie Group, Domino’s Pizza Enterprises, M2 Group, Challenger and the ANZ Bank.

CORPORATES
INTRALINKS INCORPORATED, CASS BUSINESS SCHOOL, CITY UNIVERSITY, LONDON, MACQUARIE GROUP LIMITED – ASX MQG, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, M2 GROUP LIMITED – ASX MTU, CHALLENGER LIMITED – ASX CGF, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, RETAIL FOOD GROUP LIMITED – ASX RFG, SILVER LAKE RESOURCES LIMITED – ASX SLR, DOMINO’S PIZZA JAPAN INCORPORATED, TERRA FIRMA CAPITAL PARTNERS LIMITED, DELAWARE INVESTMENTS, FOX-PITT KELTON COCHRAN CARONIA WALLER LLC