BREAKFAST DEALS: Nabbing Wells Fargo?

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NAB could be talking with Wells Fargo as the US bank prepares a Sydney base.

National Australia Bank, Wells Fargo

Into the highly speculative realm: rumours are circulating that National Australia Bank might be talking with US bank Wells Fargo. According to a report in the Herald Sun, three Wells Fargo jets were spotted landing in Melbourne recently, coinciding with the bank's push to set up an office in Sydney. In January, Wells Fargo established an Australian operation through its South Dakota-based subsidiary, according to ASIC filings viewed by the paper, which is located across the road from NAB subsidiary Great Western. NAB was not available for comment.

Hoyts

A bumper 2009 doesn't necessarily mean the Hoyts cinema chain, owned by private equity firm Pacific Equity Partners, will be put on the block in a great hurry. Hoyts executive chairman and shareholder David Kirk – formerly head of Fairfax Media – has told The Australian Financial Review no decision has been made yet on floating the company or conducting a trade sale, and this week's meetings with investment bankers simply demonstrated the group is focused on pondering its options. Still, The Australian says two joint lead managers are expected to be appointed, with UBS, Goldman Sachs JBWere and Macquarie among those invited to talk with the company. The 2010 fiscal year will be stronger than the previous year, Kirk told the paper, with Australian revenue for the 2009 fiscal year to June said coming in at just under $300 million.

Sexpo

Sexpo is looking at a listing by the year's end to help fund a push to spread its 'adult lifestyle exhibition' across Europe and the US. "The world needs Sexpo”, general manager Rob Godwin is quoted as saying, describing attendance as "somewhat of a rite of passage for newly turned 18 year-olds but also for couples.” Logically, the company sees attendees as potential investors, and plans to approach so-called "mum and dad investors” at this year's exhibition. Godwin says the group is different to others in the field because it focuses on couples and women, rather than men, according to Smart Company. A prospectus is expected by the end of November.

Miclyn Express Offshore

In a solid vote of confidence, Macquarie Group has confirmed it will retain at least 30 per cent of Miclyn Express as part of the offshore oil and gas support company's Australian IPO. The Miclyn listing – with shares to be priced at between $1.85 and $2.30 each – will be an eagerly observed one, following disappointment over last year Myer's IPO. While The Australian notes that Miclyn will be not governed by the Corporations Act given it is registered in Bermuda (and the 2.35 per cent fees for Macquarie Capital Advisers,JPMorgan Australia and Morgan Stanley), on the positive side, the company operates in a solid space and is seen to have priced its offering appropriately more attractively than recent floats. The Sydney Morning Herald notes institutional investor approval that Miclyn's price-to-earnings ratio is quite lower than comparable Mermaid Marine, given the latter owns wharves and supply bases.

Wrapping up

The wars continue for Nufarm, with the agrichemicals company tipped by The Australian to receive a 'please explain' from the ASX regarding when it knew the 2010 fiscal year would produce a loss. This week's profit warning controversially came about as shareholders were set to vote on granting Japan's Sumitomo a 20 per cent stake in the company. Elsewhere, the AFR says hearing implant maker Cochlear is in talks with Palladio Partners regarding an offer for Siemen's hearing aid business, believed worth €2 billion. Elsewhere, the Telstra woes continue with a series of analyst downgrades but it's not all bad news in the telco space: wireless giant China Mobile has confirmed it is in talks to take a stake in Shanghai Pudong Development Bank, with a $US5.9 billion price tag for a 20 per cent stake bandied about in a research note. Meanwhile, US property giant Simon Property has played down antitrust concerns over its bid for beleaguered rival General Growth, which was also rumoured to have attracted the attention of Australia's Westfield.