BREAKFAST DEALS: Is ANZ offloading?

ANZ will wrap up the earnings season today amid questions over the possible sale of its ING wealth management business to AMP.

ANZ Banking Group, AMP, AXA Asia Pacific, National Australia Bank

With ANZ Banking Group set to wrap up earnings season today, questions will no doubt be raised about a report yesterday saying the bank was looking to sell its ING wealth management business to AMP in return for a 30 per cent stake in the wealth manager. While ANZ spokespeople were yesterday playing down the suggestion of a $4 billion deal, The Age is reporting that while the companies are understood to have held informal discussions late last year following National Australia Bank's surprise bid for AXA Asia Pacific, the 'Plan B' talks aren't happening now. While ANZ has made clear its focus is on Asia, the paper says ANZ chief Mike Smith isn't opposed to a local acquisition – but it must be appropriate. As for AMP, it is awaiting the ACCC's verdict on both takeover offers for AXA, reportedly hoping the competition regulator will note that the banks' share of the investment platform market, especially in increasingly popular 'wrap platform' products, will grow - to perhaps unpalatable levels - should NAB be given the green light.

Cochlear

Hearing implant giant Cochlear is also keen on "appropriate” acquisitions, but chief Chris Roberts is reluctant to discuss reports it is teaming up with Kohlberg Kravis Roberts and Hellman and Friedman to bid for the hearing air unit of Siemens. The reports were "really, truly media speculation,” Roberts is quoted as saying in Bloomberg, with the company still focused on implantable devices. Siemens is believed to want 2 billion euros for the unit.

Westfield

Shopping centre giant Westfield is keeping mum on overseas reports it has signed a non-disclosure agreement with troubled US shopping centre owner General Growth Properties. General Growth this week announced a proposal to split the company into good and bad, with Canadian property investor Brookfield Asset Management as a cornerstone investor in both. The proposal, designed to fend off a $US10 billion hostile takeover offer from Simon Property and help the company emerge from Chapter 11 bankruptcy protection, feels "very good,” president Thomas H Nolan Jr. is quoted as saying in Bloomberg. Westfield has long been named a suitable acquirer of General Growth's assets, and although some speculated it might tee up with a sovereign wealth fund or Simon, industry sources have told The Australian the company is acting alone so far. Westfield's Steven Lowy last week refused to comment on market speculation, saying only the company was "watching the situation”. A bankruptcy judge will decide on March 3 whether to extend General Growth's exclusivity period.

BHP Billiton, Rio Tinto, Vale

WA Premier Colin Barnett isn't happy with BHP Billiton and Rio Tinto, accusing the major miners of being more focused on appeasing foreign regulator in regards to their increasingly controversial iron ore joint venture than dealing with the state which owns the iron ore, reports The Aus. The government is attempting to bring royalties for the major miners in line with current charges, a move tipped to cost the companies around $300 million per year. Still, international acceptance of the joint venture is by no means guaranteed; the AFR says the European Commission has received views from rival companies on the JV, while the Japanese steel body has failed to be convinced on the JV's merits, with the chairman of the Japan Iron and Steel Federation dubbing an explanation from BHP and Rio conceptual, lacking in specifics and hardly convincing. Ouch. Elsewhere in BHP news, and Moody's has warned of an oversupply and weakened fertiliser prices amid intense interest in the sector from resources heavyweights. The report tips small fertiliser makers and companies with Canadian potash mining rights could become targets, according to Bloomberg, with BHP and Vale possibly underpinning higher valuations and more competitive bidding processes.

Wrapping up

Sources close to Lend Lease have told the Sydney Morning Herald there's been a positive institutional response to the property company's rights issue, with speculation persisting the company might be interested in Bilfinger Berger's local assets. Elsewhere, Crown is set to report today, with questions tipped for the gaming group's plans for its Macau joint venture which was recently rumoured to have attracted overseas interest. Finally, The Australian is reporting Canberra chatter that beleaguered telco Telstra – fresh from a Fitch revision of its outlook to negative from stable – might look to capitalise on election-year jitters during its negotiations with the government over the national broadband network. The idea flagged by the paper is the government is more likely to offer favourable compensation to Telstra as the election draws nearer.