MERGERS AND ACQUISITIONS – AUSTRALIA

Boards ‘hungry for growth’

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Original article by Damon Kitney
The Australian – Page: 19 : 24-Jul-14

A Business Leaders Forum in Perth on 23 July 2014 heard from Michael Chaney, chair of National Australia Bank and Woodside Petroleum. He said company boards were once more interested in pursuing growth via acquisitions or capital investment in new developments, as stockholders were also ready to fund such initiatives. However there was often a lack of suitable takeover targets, Chaney added. Recent mergers and acquisitions moves have featured Goodman Fielder, Treasury Wine Estates, David Jones, SAI Global and Aquila Resources

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL|NATIONAL AUSTRALIA BANK LIMITED – ASX NAB|TELSTRA CORPORATION LIMITED – ASX TLS|RIO TINTO LIMITED – ASX RIO|GOODMAN FIELDER LIMITED – ASX GFF|TREASURY WINE ESTATES LIMITED – ASX TWE|DAVID JONES LIMITED – ASX DJS|SAI GLOBAL LIMITED – ASX SAI|AQUILA RESOURCES LIMITED – ASX AQA|SEEK LIMITED – ASX SEK|DEUTSCHE BANK AG

M&A ‘explosion’ may not rattle Australia

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Original article by Jared Lynch
The Australian Financial Review – Page: 23 : 22-Jul-14

GMO co-founder Jeremy Grantham is expecting a "veritable explosion" in mergers and acquisitions activity in Australia. He says that three factors will lead to a record number of mergers and acquisitions deals, namely cheap capital, the economic recovery and high profit margins. JPMorgan is not convinced. The firm believes that foreign investors will be deterred by the high value of the Australian dollar

CORPORATES
GRANTHAM MAYO VAN OTTERLOO AND COMPANY LLC, JP MORGAN AUSTRALIA LIMITED, WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED – ASX DJS, TREASURY WINE ESTATES LIMITED – ASX TWE, KOHLBERG KRAVIS ROBERTS AND COMPANY, STANDARD AND POOR’S 500 INDEX, TIME WARNER INCORPORATED, NEWS CORPORATION – ASX NWS, 21ST CENTURY FOX INCORPORATED

Big offer for Lew’s Country Road stake

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 : 22-Jul-14

Country Road executives have advised shareholders to accept Woolworths Holdings’ offer of $A17 per share. Businessman Solomon Lew has an 11.8 per cent stake in the retailer, and his support for the offer is crucial if Woolworths is to gain full ownership. An independent expert’s report by Lonergan Edwards & Associates has valued Country Road shares at between $A14.92 and $A16.22

CORPORATES
COUNTRY ROAD LIMITED – ASX CTY, WOOLWORTHS HOLDINGS LIMITED, LONERGAN EDWARDS AND ASSOCIATES LIMITED, DAVID JONES LIMITED – ASX DJS, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WITCHERY FASHIONS PTY LTD, MIMCO PTY LTD

Rinehart eyes Fairfax takeover

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Original article by Sharri Markson
The Australian – Page: 23 : 21-Jul-14

Australian mining heiress Gina Rinehart is a major stockholder in the struggling Fairfax Media newspaper publishing group. She owns 14.99% via her Hancock Prospecting business, but has been rebuffed in efforts to also gain a board position. Insiders claim that she may be contemplating a move to above 20% and possibly a complete takeover, in order to secure control over how the company is run. Newly installed directors would then remove current chair Roger Corbett and CEO Greg Hywood. Ex-Victorian premier Jeff Kennett says he has been asked by Rinehart whether he would serve on the board, but declined

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, HANCOCK PROSPECTING PTY LTD, DOMAIN.COM.AU, ALLAN GRAY AUSTRALIA PTY LTD, BEYOND BLUE LIMITED

Iluka silent on Kenmare tilt

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Original article by Barry FitzGerald
The Australian – Page: 18 : 17-Jul-14

Australian-listed Iluka Resources has issued its production data for the quarter ending 30 June 2014, but the report did not make any mention of its takeover bid for UK-based Kenmare Resources. Iluka had recently been unveiled by the UK media as the suitor in a planned $A780m acquisition of Kenmare, which is attractive due to its Moma mineral sands mine in Mozambique. Iluka shares on 16 July closed 4% higher at $A8.53, as the output figures showed a year-on-year increase for zircon, rutile and synthetic rutile of 5.9% to 252,000 tonnes

CORPORATES
ILUKA RESOURCES LIMITED – ASX ILU, KENMARE RESOURCES PLC, ASX LIMITED – ASX ASX, M&G INVESTMENT MANAGEMENT LIMITED

Expedia’s offer brings up many Wotifs for sector

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Original article by Adir Shiffman
The Australian Financial Review – Page: 25 : 15-Jul-14

The acquisition of Australian-listed online travel bookings provider Wotif.com by Expedia is not a positive development for Australia. The deal is likely to have a negative impact on competition in the hotel bookings sector. There will be fewer jobs in the industry and a loss of expertise and talent. It is surprising that Wotif capitulated so quickly and accepted the takeover offer. Several years ago, Wotif was considered to be in the same category as SEEK and REA Group

CORPORATES
WOTIF.COM HOLDINGS LIMITED – ASX WTF, EXPEDIA INCORPORATED, SEEK LIMITED – ASX SEK, REA GROUP LIMITED – ASX REA, BOOKING.COM BV, AGODA COMPANY PTE LTD, ORBITZ INCORPORATED, ASX LIMITED – ASX ASX, TRAVEL.COM.AU LIMITED, HOTELS.COM LP, TRIPADVISOR LLC, HOTELCLUB, DISRUPTIVE INVESTMENT GROUP LIMITED – ASX DVI, CATAPULT SPORTS PTY LTD

Macquarie, Nine on Resi road

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Original article by Andrew White
The Australian – Page: 21 : 10-Jul-14

Australian-listed financial services company Yellow Brick Road (YBR) is raising $42 million through a share issue to fund the acquisition of non-bank lender Resi. YBR will pay $A36 million in cash and shares for the target. Macquarie Group and Nine Entertainment will be issued with 17.1 million new shares in YBR, at $A0.70 a share, with other institutional investors taking 25.8 million shares

CORPORATES
YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, MACQUARIE GROUP LIMITED – ASX MQG, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, RESI MORTGAGE CORPORATION PTY LTD, VOW FINANCIAL HOLDINGS PTY LTD, BELL POTTER SECURITIES LIMITED, TICKETEK, MINERAL RESOURCES LIMITED – ASX MIN

Expedia told: lift rates, cop a backlash

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 42 : 10-Jul-14

A takeover offer worth $A703m has been made for Australian online travel bookings group Wotif.com by US-based Expedia. Local accommodation operators say they will increasingly turn to direct reservations via upgraded in-house web sites, if Expedia attempts to raise commission rates after the acquisition. At present Wotif charges about 12% and the Australian unit of Expedia 18%. Industry expert Dean Dransfield likens the warning by the hotel businesses to the revolt against increased fees at property classifieds portal REA Group by real estate agents

CORPORATES
WOTIF.COM HOLDINGS LIMITED – ASX WTF, REA GROUP LIMITED – ASX REA, EXPEDIA AUSTRALIA PTY LTD, EXPEDIA INCORPORATED, MANTRA GROUP LIMITED – ASX MTR, ACCOR SA, DRANSFIELD HOTELS AND RESORTS PTY LTD

Tinkler skips out on Wilkie Creek

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Original article by Gretchen Friemann, James Chessell
The Australian Financial Review – Page: 15& 20 : 9-Jul-14

Businessman Nathan Tinkler has missed a payment on his $A150 million acquisition of the Wilkie Creek coal mine in Queensland. It is thought that Peabody Energy has granted an extension on the payment, which was due on 30 June 2014. However, uncertainty about Tinkler’s financial position has brought back the underbidders. Stanmore Coal offered nearly $A20 million, excluding liabilities, for the mine

CORPORATES
STANMORE COAL LIMITED – ASX SMR, PEABODY ENERGY CORPORATION, JEFFERIES AND COMPANY, LEUCADIA NATIONAL CORPORATION, PATINACK FARM PTY LTD, UBS AG, BENTLEY RESOURCES PTE LTD

Expedia launches $703m takeover bid for Wotif.com

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Original article by Perry Williams, Madeleine Heffernan
The Australian Financial Review – Page: 15/20 : 8-Jul-14

US-based online travel bookings group Expedia has launched a takeover bid for Wotif.com. Investors have been offered $A3.30 a share in a bid worth $A703 million in total. Wotif co-founder Graeme Wood as well as CEO and MD Scott Blume have recommended shareholders accept the offer. Blume said competition in the sector was so intense that it was "eat or be eaten" for Wotif

CORPORATES
WOTIF.COM HOLDINGS LIMITED – ASX WTF, EXPEDIA INCORPORATED, BOOKING.COM BV, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FAIRFAX MEDIA LIMITED – ASX FXJ, PARADICE INVESTMENT MANAGEMENT PTY LTD, SUMITOMO MITSUI FINANCIAL GROUP INCORPORATED, WILSON HTM LIMITED, HYPERION ASSET MANAGEMENT LIMITED, UQ HOLDINGS, GUARDIAN MEDIA GROUP PLC, CCZ EQUITIES PTY LTD