BREAKFAST DEALS: Equity a-hoy

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Carlyle Group has thrown its hat in the ring for Loscam. Plus, Bright Food ups its CSR offer.

Carlyle Group, Affinity Equity Partners, Loscam, CHAMP Private Equity, Study Group International, Ironbridge Capital, HarbourVest Partners

Private equity is back in the news courtesy of a conference in Sydney, and when not waxing lyrical about the lessons banks have learned from the global financial crisis, the firms have been updating on their plans for the year. Deals already slated for 2010 include the sale of Hoyts by Pacific Equity Partners and CHAMP Private Equity's Manassen Foods. To start, Carlyle Group has thrown his hat in the ring for pallet maker and Brambles competitor Loscam, with managing director Simon Moore telling Reuters his firm would take a look at the "interesting” asset, owned by Affinity Equity Partners. Moore also tipped a public listing of CHAMP Private Equity's education business Study Group International, rather than trade sale. Meanwhile, Ironbridge Capital, whose assets include iNova Pharmaceuticals and Barbeques Galore, also told Reuters it had discussed with bankers a possible sale of one of two of its businesses. Meanwhile, HarbourVest Partners has reaffirmed its commitment to Australia, with the MYOB owner (alongside Archer Capital) saying it will hold its local assets, Reuters says. Notwithstanding concerns over tax office's move on TPG's Myer float proceeds and residual risk aversion among lenders, conference participants were seemingly pretty confident about this year's menu as share prices lift and confidence improves.

CSR, Bright Food Group

China's Bright Food Group has popped up on the radar again, this time telling the China Daily it is willing to raise its offer for CSR's sugar and renewable energy business. The group will send officials to Australia for talks this month, and hopes to have a deal finalised by the end of the year. While the prospect of an offer that exceeds the previous $1.5 billion bid might appeal to some CSR shareholders wearied by the legal battle over the company's asbestos liabilities, the company at this stage is focused on its appeal against a ruling that barred it from demerging the business. Given the proposed demerger has thus far been thwarted on concerns the smaller company, Sucrogen, might not be able to reach its undefined asbestos liabilities in the future, it's unclear how much freedom CSR would have over the sale proceeds. In any event, CSR is getting the hard word from major shareholder GPG, which has told The Australian that shareholders "would not be disadvantaged” if the company engaged. Others have called for a formal offer from Bright Foods, rather than media murmurings.

ANZ Banking Group, Tower Australia

Plenty of news in the financial services space, with ANZ Banking Group gaining in-principle approval for a Indian bank licence and Macquarie Group looking set to boost its deposit base by asking permission to shift cash management trust savings into deposit accounts following an outflow from the former after the introduction of the federal government's retail deposit guarantee. Meanwhile, the Australian Prudential Regulatory Authority has granted Japanese insurance giant Dai-Ichi the ability to increase its stake in local play Tower Australia to just under 50 per cent, from the current 30 per cent. Dai-Ichi is soon to list on the Tokyo Stock Exchange.

Cochlear, Siemens

Even a company with a traditionally risk averse approach to M&A risks being stung for pursuing the wrong deal at the wrong price. With rumours circulating that ear implant maker Cochlear is in the running for Siemens' hearing aid business in concert with Hellman Friedman & Co and Kohlberg Kravis Roberts – and may be talking with advisory firm Palladio Partners about the very issue, as reported by the Fin – analysts have advised the company to tread carefully. One, Wilson HTM's Shane Storey, told Bloomberg the company already seems to have sufficient growth potential within its existing research pipeline, warning a bid might be a "step in the wrong direction”. Another, Citigroup's Alex Smith told Bloomberg he was unconvinced a "significant outlay” would reap complementary benefits. While Cochlear has kept mum on a potential acquisition, Siemens is reportedly underwhelmed with the prices pitched thus far for the asset, which have come in below its two billion euro asking price.

Wrapping up

Following on from Wesfarmers' €500 million bond sale, Telstra says it will meet with bond investors in the France, Germany and the UK shortly. Elsewhere, Nufarm says it knew only one day before an EGM how to accurately rectify its forecast for the year ahead. Responding to a 'please explain' from the ASX, the agrichemicals group explained the 163 per cent profit slump forecast by saying the board had not received the relevant information until March 1, one day before shareholders were set to vote on whether to approve a deal with Sumitomo Chemicals. Meanwhile, the AFR is reporting that Brookfield Multiplex will list $4 billion of office property later this year, as Investa property Group mulls whether to test the waters once more following last year's aborted IPO. And over to investment banking, Bloomberg reports that total investment banking fees rose 13 per cent last year to nearly $US60 billion, with JPMorgan coming out as the world leader.

There will be no Deals TV today or on Monday, March 8. Deals TV will return on Tuesday, March 9.