BREAKFAST DEALS: Eyes on iiNet

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Amid chatter that Telecom New Zealand is set to offload its 'non-core' AAPT business, questions are emerging about what a sale will mean for iiNet.

AAPT, iiNet, Amcom Telecommunications, TPG Telecom

Amid chatter that Telecom New Zealand is set to offload its "non-core” AAPT business shortly, possibly to TPG Telecom or private equity, questions are emerging about what sale will mean for iiNet. According to the Sydney Morning Herald, the AAPT sale could lead to a change of ownership at the nation's third-largest internet service provider, via the buyer offloading the telco's 18 per cent stake in iiNet. Another possibility is via 22.5 per cent shareholder, Amcom Telecommunications, which is said by the paper to not only have an open mind on selling its iiNet stake, but some AAPT ambitions of its own. Australia isn't the only place where telecommunications M&A is a hot topic, with the sector said by Dealogic to be having its busiest year deals-wise since 2006.

ANZ Banking Group, PT Bank Panin

ANZ Banking Group might have recently been named the frontrunner to take over Indonesian bank PT Bank Panin, but there are questions now as to whether the target's controlling shareholder is actually selling. A source close to the Gunawan family has told Dow Jones that a sale of the 46 per cent holding is not on the cards, despite interest received for the $1.4 billion stake (and the hiring of UBS.) Still, the family is said by Reuters to still be in negotiations, with a source telling the news-wire that ANZ is likely to be chosen, bettering perhaps Standard Chartered and Spain's BBVA. An ANZ spokesman described its 39-per-cent stake in PT Bank Panin as "strategic” and an "important part” of its super regional strategy, The Australian reports.

Resolution, AXA SA, Lloyds Banking Group

Elsewhere in financial services, and Resolution's £2.75 billion play for AXA SA's UK life insurance business has been likened to Prudential's recent failed bid for AIA.Concerns over a lack of obvious synergies between the two, and the size of Resolution's mooted share sale – £2 billion versus a market capitalisation of £1.5 billion – have led some market-watchers to be underwhelmed by the deal, according to FTAlphaville. Still, the deal is seen as better enabling AXA SA to focus on Asia, with assets to be offloaded by AIA and ING seen as likely targets – or further investment in local subsidiary AXA Asia Pacific. Also in UK banking news, and the taxpayer-backed Lloyds is said by The Times to be making progress on a back-up plan to float 600-odd branches. UBS and Merrill Lynch are working on the so-called 'Project Verdi.'

Wrapping up

Individual names are being added to the list of sovereign wealth funds thought to be planning to buy into the Shanghai and Hong Kong listing of China's third largest bank. According to a Infocast News report, Hong Kong billionaire Li Ka-shing is among cornerstone investors in what might be the world's largest ever IPO. The Agricultural Bank of China's forecast valuation for 2011 is 1.57 to 1.97 times price-to-book, according to research from underwriter Macquarie seen by Reuters. Meanwhile, The Age reports that receivers are understood to have received plenty of approaches in regards to the collapsed electrical appliances and white goods retailer Clive Peeters, with due diligence to follow. The paper also flags a play for Downer EDI by UGL or Leighton Holdings should the engineering services and mining company fail to restore investor confidence shortly, while The Australian Financial Review says Mirvac Group, Abacus Property Group or Cromwell Group could be behind approaches for property trust Trafalgar Corporate Group.