MERGERS AND ACQUISITIONS – AUSTRALIA

Former Ten chief Grant Blackley linked to US private equity bid

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Original article by Darren Davidson
The Australian – Page: 19 : 11-Nov-14

Ten Network and its advisor, investment banking firm Citi, are holding talks with potential takeover suitors. The free-to-air TV group may be taken private, and there is speculation that a possible bid by US-based private equity firm Hellman & Friedman also involves ex-Ten CEO Grant Blackley. The most likely acquirers however remain Australian pay-TV provider Foxtel and US ally Discovery Communications. Any purchaser of Ten will require the support of current board members and 40% shareholders Lachlan Murdoch, James Packer, Gina Rinehart and Bruce Gordon

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, DISCOVERY COMMUNICATIONS INCORPORATED, FOXTEL MANAGEMENT PTY LTD, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, CROWN RESORTS LIMITED – ASX CWN, WIN CORPORATION PTY LTD, CITIGROUP PTY LTD, HELLMAN AND FRIEDMAN CAPITAL PARTNERS, FAIRFAX MEDIA LIMITED – ASX FXJ, TOURANG LIMITED, CONSOLIDATED PRESS HOLDINGS LIMITED, RGM ARTISTS PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TIME WARNER (AUSTRALIA) PTY LTD, TIME WARNER INCORPORATED

Outlook for deals healthy as vendors eye valuations

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 11-Nov-14

Data from Dealogic shows that Australian companies have been involved in $US77.3bn ($A89.1bn) worth of mergers and acquisitions so far in 2014, which is nine per cent higher than previously. Meanwhile, a new report from Grant Thornton forecasts further growth in mergers and acquisitions activity in the next 12 months, following 105 deals in the 18 months to 30 June 2014

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, GRANT THORNTON AUSTRALIA, UBS HOLDINGS PTY LTD, GRESHAM PRIVATE EQUITY LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Time Warner’s Ten play

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Original article by James Chessell, Sarah Thompson
The Australian Financial Review – Page: 1 & 34 : 10-Nov-14

It has been revealed that US media group Time Warner contacted Australia’s Ten Network about a potential takeover bid in early October 2014. The non-binding approach indicated that any bid by Time Warner’s cable TV arm would be pitched at $A0.25 per share and be conditional on the support of key Ten shareholders. Time Warner has also made overtures to Apollo Global Management to buy its stake in rival free-to-air broadcaster Nine Entertainment Company

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, TIME WARNER INCORPORATED, TURNER BROADCASTING SYSTEM INCORPORATED, APOLLO GLOBAL MANAGEMENT LLC, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, CITIGROUP PTY LTD, CROWN RESORTS LIMITED – ASX CWN, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD, CABLE NEWS NETWORK, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, DISCOVERY COMMUNICATIONS INCORPORATED, PROVIDENCE EQUITY PARTNERS INCORPORATED, HELLMAN AND FRIEDMAN, ANCHORAGE CAPITAL PARTNERS PTY LTD, VIACOM INCORPORATED, MTV MUSIC TELEVISION, CHANNEL 5 BROADCASTING LIMITED, LIBERTY GLOBAL INCORPORATED, ITV PLC, 21ST CENTURY FOX INCORPORATED, FAIRFAX MEDIA LIMITED – ASX FXJ

Ten brass to discuss bid by US media giant

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Original article by Dominic White, Jared Lynch, James Chessell
The Australian Financial Review – Page: 13/18 : 7-Nov-14

Investment banking firm Citi will advise Ten Network on bids by potential takeover suitors. Negotiations will start on 10 November 2014, and the most likely acquirer of the free-to-air TV group appears to be an alliance of pay TV provider Foxtel and US ally Discovery Communications. The speculation on 6 November lifted Ten’s share price by 7% to a close of $A0.23. Fairfax Media had also discussed a deal with Ten’s executives in October, but is now not expected to pursue the opportunity

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, CITIGROUP PTY LTD, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CROWN RESORTS LIMITED – ASX CWN, WIN CORPORATION PTY LTD, DEUTSCHE BANK AG, ANCHORAGE CAPITAL PARTNERS PTY LTD, PROVIDENCE EQUITY PARTNERS INCORPORATED

Ten tie-up with Fairfax back in frame as Rinehart exits network’s board

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

Fairfax Media is in ongoing talks on a potential merger with free-to-air TV group Ten Network, and may divest its radio assets to entrepreneur John Singleton so as not to breach media ownership laws. A 14.99% stake in Fairfax is held by mining heiress Gina Rinehart, who also has 10% of Ten. However she is stepping down from the role of director on Ten’s board. The seat will be taken up by John Klepec, also chief development officer at Rinehart’s private Hancock Prospecting vehicle. Interest in a deal with Ten has come from pay TV business Foxtel as well

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS, MACQUARIE RADIO NETWORK LIMITED – ASX MRN, NEWS CORP AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, FAIRFAX RADIO NETWORK PTY LTD, HANCOCK PROSPECTING PTY LTD, CROWN RESORTS LIMITED – ASX CWN, WIN CORPORATION PTY LTD, MTV MUSIC TELEVISION, VIACOM INCORPORATED, CHANNEL 5 BROADCASTING LIMITED, ITV NETWORK LIMITED, ITV PLC, LIBERTY GLOBAL INCORPORATED, ROY HILL IRON ORE PTY LTD

Rinehart aide ‘set to take Ten seat’

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Original article by Darren Davidson
The Australian – Page: 21 : 21-Oct-14

The stock of Ten Network on 20 October 2014 closed $A0.02 higher at $A0.22, on news of merger talks by the free-to-air TV group with Fairfax Media. The Hancock Prospecting vehicle of mining heiress Gina Rinehart owns stakes of 14.99% and 10% in Fairfax and Ten respectively. Her seat on the board of the latter may soon be transferred to her chief development officer, John Klepec. Rinehart is believed to be positively disposed toward a merger deal, despite doubts about Fairfax’s management capabilities in the TV sector

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, HANCOCK PROSPECTING PTY LTD, ROY HILL HOLDINGS PTY LTD, CMC MARKETS PTY LTD

Virgin gears up for international push

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Original article by Jamie Freed
The Australian Financial Review – Page: 13 : 20-Oct-14

Virgin Australia Holdings will acquire full ownership of Tigerair, and Virgin CEO John Borghetti has not ruled out international flights for the budget offshoot. Tigerair currently operates a fleet of Airbus A320s, which Borghetti says could be used on shorter international routes. He also says other aircraft models could be added to Tigerair’s fleet, but says divesting the A320s is not on the agenda

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, TIGER AIRWAYS AUSTRALIA PTY LTD, AIRBUS SAS, BOEING COMPANY, JETSTAR AIRLINES PTY LTD, TIGER AVIATION PTE LTD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. CIVIL AVIATION SAFETY AUTHORITY, QANTAS AIRWAYS LIMITED – ASX QAN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AFFINITY EQUITY PARTNERS (AUSTRALIA) PTY LTD

Surge in M&A work boosts the big firms

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Original article by Chris Merritt
The Australian – Page: 27 : 17-Oct-14

Commonwealth Bank of Australia and Beaton Research + Consulting have issued their "Market Pulse" legal profession confidence survey for the September 2014 quarter. The figures show that the ratio of major law firms reporting negative conditions has fallen to just 17% from 70% a year ago. The main reason is the recent turnaround in the market for merger and acquisition deals work, with 56% also forecasting further gains in this segment over the period to March 2015. Another growth area is insurance, and this is borne out as well by the new law firm rankings released by Thomson Reuters

CORPORATES
BEATON RESEARCH AND CONSULTING PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, THOMSON REUTERS PLC

Iron ore glut spurs ‘race to bottom’

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Original article by Jemima Whyte, Matthew Stevens
The Australian Financial Review – Page: 15 & 21 : 13-Oct-14

Australian producers BHP Billiton and Rio Tinto are responding to the recent dramatic decline of the iron ore price with a boost in output. The strategy is being criticised by Nev Power, CEO of third-ranked competitor Fortescue Metals Group, as well as by Alberto Calderon. The latter had spearheaded the ultimately abandoned plan to merge BHP and Rio, and also argues that a currently rumoured takeover bid for Rio by Swiss resources house Glencore would not reverse the price trend for iron ore

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, GLENCORE PLC, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, PERPETUAL LIMITED – ASX PPT, PERPETUAL INVESTMENTS

Wotif shareholders approve $703m Expedia takeover deal

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Original article by Jamie Freed
The Australian Financial Review – Page: 16 : 10-Oct-14

Healthscope is set to replace Wotif.com in the S&P/ASX 200 Index after the latter’s acquisition by US-based Expedia was approved by more than 99 per cent of shareholders. Expedia is likely to have a 45 per cent share of Australia’s online hotel booking market following the acquisition, which is still subject to approval by the Foreign Investment Review Board and the New Zealand Commerce Commission

CORPORATES
WOTIF.COM HOLDINGS LIMITED – ASX WTF, EXPEDIA INCORPORATED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NEW ZEALAND. COMMERCE COMMISSION, WEBJET LIMITED – ASX WEB, PRICELINE.COM, BOOKING.COM BV, AGODA COMPANY PTE LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN HOTELS ASSOCIATION, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, HEALTHSCOPE LIMITED – ASX HSO, STANDARD AND POOR’S ASX 200 INDEX, DOW JONES INDUSTRIAL INDICES