MERGERS AND ACQUISITIONS – AUSTRALIA

US giant in $2bn bid for Recall

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Original article by Michael Bennet, Damon Kitney
The Australian – Page: 15 : 15-Dec-14

Australian-listed records management services provider Recall has become a takeover target, in an offer worth $A2.2bn by US-based rival Iron Mountain. The bid of about $A7 a share is tipped by experts to be rebuffed by the Recall board as undervaluing the business, and may be sweetened to as much as $A9. Previous speculation about a move by Iron Mountain has lifted Recall’s stock by 27% since September 2014. The cost synergies may amount to as high as $A270m, but institutional shareholders such as Maple-Brown Abbott and Australian Foundation Investment Company may seek a quarter or more of this

CORPORATES
RECALL HOLDINGS LIMITED – ASX REC, IRON MOUNTAIN INCORPORATED, MAPLE-BROWN ABBOTT LIMITED, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, ACCESS, CINTAS CORPORATION, BUSINESS RECORDS MANAGEMENT, BRAMBLES LIMITED – ASX BXB, UBS HOLDINGS PTY LTD, NEW YORK STOCK EXCHANGE, CHINA COMMUNICATIONS CONSTRUCTION GROUP LIMITED, LEIGHTON HOLDINGS LIMITED – ASX LEI, JOHN HOLLAND PTY LTD, APA GROUP – ASX APA, BG GROUP PLC

‘Opportunistic’ buyer Glencore still on acquisition hunt

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 15-Dec-14

Glencore chairman Tony Hayward is not expected to discuss a potential merger with Rio Tinto during a visit to Australia in mid-December 2014. Rio Tinto revealed in early October that Glencore had approached the group about a merger, and Switzerland-based Glencore is widely tipped to make another approach in 2015. Glencore CEO Ivan Glasenberg recently indicated that the group remains keen to pursue acquisitions

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, BHP BILLITON LIMITED – ASX BHP, NICKEL WEST, BANK OF MONTREAL, VALE SA, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS

Woodside’s Apache bid may kill Browse

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Original article by Paul Garvey
The Australian – Page: 20 : 10-Dec-14

Insiders claim that Australian-listed Woodside Petroleum has made a pitch to US partner Apache ­Energy, to acquire the latter’s 13% stake in the Wheatstone LNG development offshore Western Australia. The likely price tag is $US1.8bn ($A2.17bn), and other potential suitors appear to have abandoned their bids due to the recent decline of the crude oil price. If Woodside goes ahead, it may no longer want to pursue its stalled Browse LNG project. A floating LNG production platform has been proposed for it by Woodside and allies Royal Dutch Shell and BP

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, APACHE ENERGY LIMITED, ROYAL DUTCH SHELL PLC, BP PLC, TEMASEK HOLDINGS (PTE) LTD, HARBOUR ENERGY LIMITED, NOBLE GROUP LIMITED, EIG GLOBAL ENERGY PARTNERS, PAVILION ENERGY PTE LTD, ORBIS AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

360 Capital grabs 7.7pc stake in rival REIT

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Original article by Ben Wilmot
The Australian – Page: 21 : 8-Dec-14

Stockholders in smaller industrial real estate investment trust (REIT) vehicles in Australia are calling on their managers to seek consolidation deals, in order to better compete with major rivals such as Goodman Group, Dexus Property Group and Stockland. In response, 360 Capital Group has bought a holding of 7.7% in competitor Australian Industrial REIT. The portfolio of assets owned by the target is worth $A308m, while the 360 Capital Industrial Fund has properties valued at $A501m

CORPORATES
AUSTRALIAN INDUSTRIAL REIT – ASX ANI, 360 CAPITAL INDUSTRIAL FUND – ASX TIX, 360 CAPITAL GROUP LIMITED – ASX TGP, GOODMAN GROUP – ASX GMG, DEXUS PROPERTY GROUP – ASX DXS, STOCKLAND – ASX SGP, MIRVAC GROUP – ASX MGR, APN PROPERTY GROUP LIMITED – ASX APD, FIFE CAPITAL PTY LTD, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED

Three-way fight for ailing Ten

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Original article by Darren Davidson
The Australian – Page: 19 : 4-Dec-14

Competing bids worth between $A510m and $A664m have been prepared for Australian free-to-air TV group Ten Network, which along with adviser Citigroup is seeking at least $A770m. Pay TV provider Foxtel and US-based ally Discovery Communications are one suitor, and interest has also been voiced by private equity firm Saban Capital Group and hedge fund Anchorage Capital Partners. They would need the approval of News Corporation co-chair Lachlan Murdoch, Crown Resorts chair James Packer and WIN Corporation owner Bruce Gordon

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, SABAN CAPITAL GROUP INCORPORATED, ANCHORAGE CAPITAL PARTNERS PTY LTD, CITIGROUP PTY LTD, ASX LIMITED – ASX ASX, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, CROWN RESORTS LIMITED – ASX CWN, WIN CORPORATION PTY LTD, 21ST CENTURY FOX INCORPORATED, WALT DISNEY COMPANY, CVC ASIA PACIFIC (AUSTRALIA) PTY LTD, KOHLBERG KRAVIS ROBERTS AND COMPANY, KKR AND COMPANY LP, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM

Offer for Ten cut after briefings

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Original article by Dominic White, Jared Lynch
The Australian Financial Review – Page: 1 & 6 : 3-Dec-14

Prospective buyers of the Ten Network were required to submit non-indicative bids by 2 December 2014. Foxtel and Discovery Communications have offered to pay between $A0.20 and $A0.25 per share for the free-to-air broadcaster, compared with an initial indicative offer of $A0.26 per share. Ten shares closed at $A0.24 on 2 December. Time Warner, which was also mooted as a bidder for Ten, has elected not to proceed with an offer, while Anchorage Capital and Saban are also seen as potential bidders

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, TIME WARNER INCORPORATED, ANCHORAGE CAPITAL PARTNERS PTY LTD, SABAN CAPITAL GROUP INCORPORATED, CITIGROUP PTY LTD, WIN CORPORATION PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, CROWN RESORTS LIMITED – ASX CWN, PROVIDENCE EQUITY PARTNERS INCORPORATED, TELSTRA CORPORATION LIMITED – ASX TLS, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

Ten set to reject Foxtel’s first bid

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Original article by Darren Davidson
The Australian – Page: 22 : 2-Dec-14

There are forecasts the directors of free-to-air TV group Ten Network will rebuff a takeover bid by pay TV rival Foxtel and US-based ally Discovery Communications on 2 December 2014. It is likely to be worth between $A0.20 and $A0.25 a share, and to be deemed too low by Ten. On 1 December the stock closed at $A0.255. Meanwhile Paul Mallam, the representative of major Ten investor and WIN Corporation owner Bruce Gordon, has stepped down as a member of the Ten board

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, WIN CORPORATION PTY LTD, HANCOCK PROSPECTING PTY LTD, CITIGROUP PTY LTD, CROWN RESORTS LIMITED – ASX CWN, CONSOLIDATED MEAT HOLDINGS PTY LTD, NEWS CORPORATION – ASX NWS, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Discovery/Foxtel to ramp up Ten offer

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Original article by Dominic White
The Australian Financial Review – Page: 31 : 24-Nov-14

Indicative offers for the Ten Network will be accepted until 2 December 2014. Foxtel and Discovery Communications are believed to be planning to make a cash and scrip offer, whereby Ten’s existing shareholders would be given shares in the free-to-air broadcaster. The move is aimed at gaining the support of 14.9 per cent shareholder Bruce Gordon, who has ruled out selling his stake. Foxtel has also proposed to merge Ten and its own Multi Channel Network advertisings sales division

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, MULTI CHANNEL NETWORK PTY LTD, CITIGROUP PTY LTD, WIN CORPORATION PTY LTD, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CROWN RESORTS LIMITED – ASX CWN, TIME WARNER INCORPORATED, HBO, WARNER BROS, CABLE NEWS NETWORK, HELLMAN AND FRIEDMAN, SABAN CAPITAL GROUP INCORPORATED, ANCHORAGE CAPITAL PARTNERS PTY LTD, PROVIDENCE EQUITY PARTNERS INCORPORATED, PARAMOUNT PICTURES CORPORATION

Ten teams up with Foxtel in F1 racing deal

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Original article by James Chessell, Dominic White
The Australian Financial Review – Page: 23 : 20-Nov-14

A new deal is about to be struck for the TV broadcasting rights in Australia to Formula One automobile racing. Insiders say free-to-air group Ten Network and pay TV provider Foxtel will jointly hold the rights after Ten’s current exclusive contract ends in late 2015. The price is tipped to be around $A30m per annum compared with $A10m now. Meanwhile it appears US-based media group Time Warner is no longer interested in a takeover of Ten, which remains a target of suitors Discovery Communications and Foxtel

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, TELSTRA CORPORATION LIMITED – ASX TLS, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, FORMULA ONE HOLDINGS LIMITED, FOX SPORTS AUSTRALIA PTY LTD, TIME WARNER INCORPORATED, DISCOVERY COMMUNICATIONS INCORPORATED, CITIGROUP PTY LTD

Anchorage to buy Pacific’s Brand Collective unit

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Original article by Sarah Thompson, Sue Mitchell
The Australian Financial Review – Page: 15 & 20 : 18-Nov-14

Private equity firm Anchorage Capital Partners is believed to be in talks to acquire the Brand Collective division of Australian-listed Pacific Brands. The division boasted sales of $A205m in fiscal 2014, but it posted a loss of $A0.9m prior to one-off costs. Anchorage will be hoping to emulate its success in turning around the fortunes of Dick Smith. Brand Collective owns brands such as Volley and Grosby, and operates several chains of shoe stores

CORPORATES
PACIFIC BRANDS LIMITED – ASX PBG, BRAND COLLECTIVE, ANCHORAGE CAPITAL PARTNERS PTY LTD, GROSBY FOOTWEAR, VOLLEY, SHOE WAREHOUSE, SHOE SUPERSTORE GROUP PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, SUPERDRY, MOSSIMO, HUSH PUPPIES, CLARKS SHOES LIMITED, WOOLWORTHS LIMITED – ASX WOW, MYER HOLDINGS LIMITED – ASX MYR, HARD YAKKA, KING GEE CLOTHING COMPANY, STUBBIES CLOTHING COMPANY, WESFARMERS LIMITED – ASX WES, MACQUARIE CAPITAL PTY LTD, KPMG AUSTRALIA PTY LTD, BONDS INDUSTRIES LIMITED, SHERIDAN AUSTRALIA PTY LTD