BREAKFAST DEALS: Indophil's Filipino fling

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Philippines-based Philex Mining Corp is considering a deal with Indophil Resources on the $US5 billion-plus Tampakan project. Elsewhere, counter-bidders in BHP's offer for PotashCorp have been revealed.

Indophil Resources, Philex Mining Corp, Xstrata

A deal might be on the cards for Melbourne's Indophil Resources after all, months after the 'disappointing' failure of a $545 million takeover offer from China's Zijin Mining. The Philippines' biggest mining company Philex Mining Corp says it is mulling an investment into the $US5 billion-plus Tampakan project in the Philippines, in which Indophil owns a 37.5 per cent stake, alongside one-time suitor Xstrata. Indophil spokesman Gavan Collery declined to tell Bloomberg whether Philex was one of the parties with which it was engaged in talks. The $1.28-per-share offer from Zijin collapsed following Chinese regulatory troubles and amid a push in the Philippines for a ban on open-pit mining. Indophil said afterwards it was optimistic that issues in the Philippines could be resolved, tipping plenty of interest in Tampakan or the company proper given the outlook for copper and the quality of the asset. This optimism has not flown through to Indophil's share price, which has fallen to 90 cents. China's privately held Fosun Group flagged an interest in Indophil after its Zijin deal collapsed; others point to 20 per cent shareholder Xstrata.

BHP Billiton, PotashCorp, AIMCo

Attention on BHP Billiton's $US40 billion bid for Potash Corp of Sasketchewan has now turned to US regulatory approval, but the Big Australian is said to have some other big desires bubbling away. An oil and gas play is also under consideration at BHP, according to The Australian, with an energy industry insider describing independent US oil and gas group Anadarko Petroleum Corporation as a 'second target', behind BP's Gulf of Mexico assets. The Australian reports that BHP walked away from a Royal Dutch Shell idea to carve up Woodside Petroleum early last year, despite its desire to bulk up in the energy sector, because of strained relations with Canberra post its failed takeover offer for Rio Tinto, and some savvy comments from Woodside about the importance of its Pluto project to the national economy. But back to Potash: the 'small universe' of counterbids is starting to reveal itself, with Alberta Investment Management Corp, known as AIMCo, confirming it has rebuffed a Chinese approach to make a joint bid for the Canadian company. Chief Leo de Bever is quoted in Bloomberg as saying that while AIMco had been approached by intermediaries trying to broker a deal involving Canadian pension plans and unnamed Chinese investors, it "never got to the stage of actually dollars and cents and structure.” He says: "Something's been floating around the pension community for a week or so. The economics may not make sense.” This follows comments by Sinochem that it was closely watching BHP's $US130-per-share offer, and rumours of interest from China's Hopu Investment Management.

Goldman Sachs, Macquarie

With the window for discussing a Goldman Sachs buyout of the Australian business open, there are different accounts as to how much progress will be made on the seemingly inevitable move. It's believed no major changes are on the cards at the moment, reports The Australian, with tough investment banking conditions seen to be unlikely to spur the local equity shareholders into action, particularly seeing the seven-year tie-up has done rather well. The AFR notes that while Goldman's US-listed shares have had better days, JPMorgan's decision to ditch proprietary trading might encourage its rival to tie up loose ends before following suit. Elsewhere, the silver donut has been named as a possible bidder for RWE's $705 million natural gas network in Germany. Sources have told Bloomberg that Macquarie Group and Deutsche Bank's infrastructure-investment unit have displayed some interest, with a sale hoped for by the end of the year.

Wesfarmers , Metcash

Elsehwhere, Western Australia conglomerate Wesfarmers has ruled out a bid for Griffin Coal assets, while fellow supermarket giant Metcash says plenty of parties have put out feelers for the dozens of Franklins stores earmarked for sale. Chief Andrew Reitzer has told The Australian Financial Review that plans to on-sell the Franklins stores are tracking nicely, with about 150 parties putting their hands up for 77 stores, the sales of which are tipped to bring in up to $150 million.

QR National

Anglo American chief Seamus French says the consortium of coal miners eyeing Queensland's coal freight network intends to make a bid to the state government at the end of next week, Bloomberg reports. The consortium – which includes BHP Billiton, Xstrata and Peabody Energy – has offered $5.1 billion for the below-rail assets, as opposed to the state's government plans for $7 billion-odd float of the vertically integrated QR National. According to The Australian, the state government intends to keep just 25 per cent should the IPO proceed, with a dividend policy yet to be determined although time is ticking to reach an October prospectus timetable.

Wrapping up

Perth-based Kangaroo Resources says India's Essar Group has put its hands up for the GPK thermal coal project in Indonesia, with a Macquarie-advised sale expected this month, Bloomberg reports. Across to Asia, and the float of American International Group's Asian life insurance unit is back on the agenda, with a source telling Reuters that an application for AIA has been filed with the Hong Kong stock exchange. The government-controlled AIG had originally sought to sell the well-regarded arm to Prudential for $US35.5 billion, but a shareholder revolt called the UK insurer to call the deal off. In food and beverages, US fast-food giant Burger King has been sold for $US3.26 billion 3G Capital while The Australian reporting on expectations that a move on alcohol giant Foster's won't proceed until significant progress has been made on its demerger.