RAILROADS – FREIGHT – AUSTRALIA

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

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

800 Aurizon jobs go amid cost-cutting

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 27 : 8-Oct-15

Australian-listed rail freight operator Aurizon Holdings aims to reduce its costs by up to $A380m over the next three years. The group has also flagged the retrenchment of an additional 800 full-time employees in its operations division, which follows the loss of 3,000 jobs over the last five years. Meanwhile, CEO Lance Hockridge says Aurizon may consider acquisitions if the West Pilbara Iron Ore Project is shelved.

CORPORATES
AURIZON HOLDINGS LIMITED – ASX AZJ, ASCIANO LIMITED – ASX AIO, PACIFIC NATIONAL PTY LTD, BROOKFIELD INFRASTRUCTURE PARTNERS LP, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, WIGGINS ISLAND COAL EXPORT TERMINAL PTY LTD

Pilbara worries cloud Aurizon dividend boost

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 : 18-Aug-15

Aurizon has reported a 15 per cent rise in underlying net profit after tax to $A604 million. The Australian-listed rail group informed investors on 17 August 2015 that its dividend payout ratio would rise to 70 to 100 per cent of underlying net profits after tax, from 60 to 70 per cent. Coal volumes are expected to remain unchanged between 210 million and 220 million tonnes in 2016 while iron ore volumes are forecast to decline to 24 million tonnes in 2016.

CORPORATES
AURIZON HOLDINGS LIMITED – ASX AZJ, PERPETUAL LIMITED – ASX PPT, GVK POWER AND INFRASTRUCTURE LIMITED

Brookfield pressed on Asciano bid

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Original article by Perry Williams, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 10 : 2-Jul-15

Australian-listed transport infrastructure group Asciano has advised that Canada’s Brookfield Asset Management made an indicative takeover offer on 26 June 2015. The $A9bn non-binding bid values the target at $A9.05 per share, but Jakov Males of UBS Global Asset Management believes that an offer of around $A10 per share would be more appropriate. The proposed takeover bid comprises a cash component and shares in Brookfield Infrastructure Partners.

CORPORATES
ASCIANO LIMITED – ASX AIO, BROOKFIELD ASSET MANAGEMENT INCORPORATED, BROOKFIELD INFRASTRUCTURE PARTNERS LP, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, FIDELITY INVESTMENTS AUSTRALIA LIMITED, SABMILLER PLC, FOSTER’S GROUP LIMITED, TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, MULTIPLEX LIMITED, PACIFIC NATIONAL PTY LTD, PATRICK CORPORATION LIMITED, COLONIAL FIRST STATE GROUP LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, GRESHAM PARTNERS LIMITED, CITIGROUP INCORPORATED

Aurizon’s Qld staff to vote on strike action

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 13 : 8-Dec-14

The Rail, Tram & Bus Union’s Queensland state secretary Owen Doogan expects Aurizon Holdings staff to vote in favour of protected industrial action over a new enterprise agreement. The ballot closes on 10 December 2014, while an Australian Federated Union of Locomotive Employees ballot closes later in the month. The proposed agreement will enable the rail group to make staff redundant

CORPORATES
AURIZON HOLDINGS LIMITED – ASX AZJ, AUSTRALIAN RAIL, TRAM AND BUS INDUSTRY UNION, AUSTRALIAN FEDERATED UNION OF LOCOMOTIVE EMPLOYEES, AUSTRALIA. FAIR WORK COMMISSION

Aurizon warns over competition limits

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Original article by Sarah-Jane Tasker
The Australian – Page: 23 : 1-Oct-14

The Queensland Competition Authority has ruled that freight rail services operator Aurizon may gain no more than $A4.02bn in annual revenue from its coal haulage assets, compared with the $A4.86bn determination sought by the company. In response to the draft decision, Aurizon has warned of declining maintenance standards for the infrastructure if capital investment has to be curtailed. The final outcome will be known by May 2015

CORPORATES
AURIZON HOLDINGS LIMITED – ASX AZJ, QUEENSLAND. COMPETITION AUTHORITY