BREAKFAST DEALS: Bids for Bilfinger

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The Australian unit of construction giant Bilfinger Berger has reported interest from 'three or four' buyers.

Bilfinger Berger Australia

While some vendors can't take a trick, others have their options wide open. So it seems for Germany construction giant Bilfinger Berger, which has reported interest from several potential buyers for its Australian construction and infrastructure services unit, Bilfinger Berger Australia, while keeping the option open for an initial public offering in the middle of the year. "It is running according to plan. We have three to four parties interested in the Australian unit and we are still preparing and IPO that could take place in June or July,” finance director Joachim Mueller is quoted by Reuters as saying of the sales process. European interest appears solid, with Vinci Construction and Bouygues of France, Grupo Dragados of Spain, and Sweden-headquartered Skanska among possible contenders, says The Australian (although Vinci has also flagged a greater focus on services rather than construction). Locally, most attention appears focused on Lend Lease, which has plenty of work in the pipeline and has just removed the ratings agency bugbear from its back. The paper says while no parties have entered the data room, the company is itching for news this month on whether the business will be sold directly or through IPO worth an estimated $1.5 billion.

Myer, Redbook, Rebel Spot, Loscam, Hoyts

Speaking of floats, ask Myer about the importance of timing. Chief Bernie Brookes tapped into disappointment over the department store's share price performance by conceding that the business was floated too early to reap the benefits of a yet-to-be-completed turnaround program. The November IPO was ahead of his schedule, Brookes said, but the decision was made by the vendors and not management. In any event, the less-than-smooth Myer listing (not helped by a spat between previous owner TPG and the tax office) has had an impact: according to the Sydney Morning Herald, mooted retail floats such as bookchain owner Redbook and Rebel Sport will be pushed back to late 2010, at best, despite earlier comments by Rebel Sport owner Archer Capital that it was awaiting results from fellow retailers before proceeding. Still, a float of the Affinity Equity Partners-owned Loscam pallet business might yet come to pass, with the AFR suggesting that ambitious pricing levels - believed suggested to Asia-focused trade buyers and private equity - might not be doing the trick. And given a dearth of trade buyers out and about, the paper tips a second-half float of cinema operator Hoyts, although previous interested party – Reading of the US – is not a given this time around, seeing it has increased debt load considerably since the last sale process in 2007.

Seven Network, WesTrac

Long-time Kerry Stokes ally Peter Gammell says Seven Network shareholders have been receptive to the idea of merging the Stokes-backed listed media group with Stokes' privately held earth-moving business WesTrac. According to Gammell, who has been appointed to lead the proposed combined entity, everything is on schedule and many people now say they "understand the story”. As for recent comments by Seven Network deputy chairman Peter Ritchie that shareholders had ridden on the "coat-tails” of Stokes, Gammell says it's a matter of interpretation. "I actually interpreted it positively, that those people are getting the opportunity to invest in Kerry Stokes' crown jewels,” he is quoted as saying, referring to WesTrac. Seven shareholders will receive the information memorandum on the unusual proposal shortly.

Centrebet, Rocklands Richfield

More questions on disclosure by listed companies have emerged, with takeover target Centrebet the latest to be questioned by the ASX. The online gaming firm confirmed it had become aware of the "confidential” proposals in early February, but did not inform the market until a newspaper report suggested controlling shareholders, the Kafataris family, was in talks over a possible offer. This follows ASX questioning of Nufarm over over when the agrichemicals company first became aware of a major slide in its profitability (the issue was particularly fraught given shareholders were informed of the profit downgrade around the time of a vote to allow Japan's Sumitomo to take 20 per cent of the once sought-after company). And The Australian draws attention to Rocklands Richfield, which has not updated shareholders for weeks on whether a preliminary proposal from China's Meijin Energy has gone the way of a dumped expression of interest from India's Jindal Steel & Power.

Wrapping up

Swiss banking giant Credit Suisse has sold $1.1 billion of four-year bonds, with the $500 million of floating-rate notes to pay 120 basis points more than the three-month bank bill swap rate, and the $600 million of 6.5 per cent priced at a yield of 6.7475 per cent, according to an email seen by Bloomberg. JPMorgan Chase & Co was the trailblazer, becoming the first Wall St recently to sell kangaroo bonds since 2008. Its five-year offer was followed by offerings from HSBC and French bank BNP Paribas. Meanwhile, the possible purchase of internet and fixed telephone services provider Netspace by Perth ISP iiNet should be cheaper than a $60 to $75 million figure first speculated. Australia's third largest ISP, which recently won a court case regarding whether it was responsible for customers illegally downloading certain media, has flagged an appetite for further acquisitions down the track, while the AFR had flagged the possibility of an acquired Netspace working as a separate brand within iiNet, as is the case for the previous conquest Westnet.