BREAKFAST DEALS: Our new column
In this new daily Wheels & Deals feature we look at all the latest rumours and gossip to tell you what's happening today - before it happens.
Breakfast deals is a new feature that will be appearing each morning, Monday to Friday, in Wheels & Deals. We hope it will save you time and make you money by providing today's news before it happens, listing the latest rumours and market gossip. And if you have any tips or suggestions, e-mail them to deals@businessspectator.com.au or leave an anonymous posting in The Conversation.
Just like the federal budget, the market leaks. And today it's leaking rumours of three big capital raisings, several resources takeovers and some interesting movements in agriculture and bio-tech.
– Stockland, SP AusNet and Oil Search don't have much in common, but they're all tipped to be next in line for the equity capital conga line. The biggest of the three may be Stockland's, which could raise between $1 billion and $1.5 billion, with Deutsche Bank and UBS seen as the likely bookrunners. GPT Group passed round the hat for a second time on Friday, seeking between $1.2 and $1.7 billion in a placement and entitlement offer led by Simon Shakesheff of UBS (Tough time for trusts, May 7). Stockland is a 12.7 per cent shareholder in GPT and, advised by UBS, made a $3.70 a share bid for GPT back in 2004. It is reportedly still keen on a merger, especially now that new GPT boss Michael Cameron seems intent on cleaning up the company's balance sheet.
– SP AusNet 's speculated capital raising is also thought to involve UBS plus Macquarie Capital according to the Financial Review. The market could be tapped for up to $400 million, of which 52 per cent shareholder Singapore Power would likely take half.
– Sylvania Resources, a junior platinum tailings dump play, launched not one but two bids last night after the market closed. SA Metals (formerly Pan Palladium) and Great Australian Resources, another platinum metals group junior, were offered deals worth $25.4 million and $5.9 million respectively, based on yesterday's close. But that's not the entire story. Rumour has it that BHP spin-off Samancor Chrome, now privately owned by South Africa's Kermas Group, is considering a bid for Sylvania. Or maybe not. A mystery Credit Suisse client became a 9 per cent shareholder last month only to sell their holding last week (but at a decent profit it seems).
– Noble Group has been rather, er, robust in its lobbying of the Gloucester Coal board, placing full page ads in print media from coast-to-coast asking the board to explain why no recommendation has yet been made for Noble's $6-per-share cash bid. But it's thought that a competing proposal from Whitehaven Coal worth $4.83 per share is not the real reason why Gloucester chair Andy Hogendijk hasn't taken Noble's advice and jumped on board one of the "five commercial flights each day" to sign up (At the coal face, May 6). Rumour has it that there are even better offers being prepared from a number of Chinese parties. Noble's offer is good, but it may be no match for the state-owned enterprises of China and their deep, state-owned pockets. There's also talk that Xstrata may have another crack for Gloucester.
– Elders has sold its final 19.9 per cent stake in AACo to retail and institutional investors by way of a bookbuild conducted by ABN Amro Morgans and RBS Equities (the broker formerly known as ABN Amro). But while this distributes the stake among a variety of parties, the rumours that Emirates-based IFFCO could substantially increase its stake have not died down. IFFCO, or International Foodstuffs, is believed to be eyeing an even greater presence in Australia (Beefing up investments, April 28). Perhaps IFFCO is waiting for AACo's shares to fall further before it sweeps up those extra shares. AACo yesterday ended discussions with Primary Holdings International Group over the sale of five properties to raise $250 million. Either the sale will have to wait or the price will come down.
– Cephalon International's declaration that it would not increase its offer for Arana Therapeutics from $1.40 (or $1.45 once 90 per cent of shares are accepted) is set to put a dampener on expectations at the antibody research and development firm. But in case you thought the fun had run out in the bio-tech sector, the rumours say that CSL's merger with Talecris Biotherapeutics could soon be consummated, with competition authorities in the US said to soon approve the deal. Others however just can't leave the sector quickly enough with Genesis Biomedical set to start a new lease of life as Black Ridge Mining. But wait there's more. Life Therapeutics, the company associated with Michael Milne, formerly of Demtel (via Switzerland), is also changing stripes, this time to Arturus Capital.
– Allco Equity Partners is also set to change its name to Oceania Capital Partners, proving that name changes aren't just the domain of bio-techs or companies like Elders/Futuris. Sydney stockbroker Findlay Securities is also set to change its name to InvestorFirst. We like the sound of that one.
Just like the federal budget, the market leaks. And today it's leaking rumours of three big capital raisings, several resources takeovers and some interesting movements in agriculture and bio-tech.
– Stockland, SP AusNet and Oil Search don't have much in common, but they're all tipped to be next in line for the equity capital conga line. The biggest of the three may be Stockland's, which could raise between $1 billion and $1.5 billion, with Deutsche Bank and UBS seen as the likely bookrunners. GPT Group passed round the hat for a second time on Friday, seeking between $1.2 and $1.7 billion in a placement and entitlement offer led by Simon Shakesheff of UBS (Tough time for trusts, May 7). Stockland is a 12.7 per cent shareholder in GPT and, advised by UBS, made a $3.70 a share bid for GPT back in 2004. It is reportedly still keen on a merger, especially now that new GPT boss Michael Cameron seems intent on cleaning up the company's balance sheet.
– SP AusNet 's speculated capital raising is also thought to involve UBS plus Macquarie Capital according to the Financial Review. The market could be tapped for up to $400 million, of which 52 per cent shareholder Singapore Power would likely take half.
– Sylvania Resources, a junior platinum tailings dump play, launched not one but two bids last night after the market closed. SA Metals (formerly Pan Palladium) and Great Australian Resources, another platinum metals group junior, were offered deals worth $25.4 million and $5.9 million respectively, based on yesterday's close. But that's not the entire story. Rumour has it that BHP spin-off Samancor Chrome, now privately owned by South Africa's Kermas Group, is considering a bid for Sylvania. Or maybe not. A mystery Credit Suisse client became a 9 per cent shareholder last month only to sell their holding last week (but at a decent profit it seems).
– Noble Group has been rather, er, robust in its lobbying of the Gloucester Coal board, placing full page ads in print media from coast-to-coast asking the board to explain why no recommendation has yet been made for Noble's $6-per-share cash bid. But it's thought that a competing proposal from Whitehaven Coal worth $4.83 per share is not the real reason why Gloucester chair Andy Hogendijk hasn't taken Noble's advice and jumped on board one of the "five commercial flights each day" to sign up (At the coal face, May 6). Rumour has it that there are even better offers being prepared from a number of Chinese parties. Noble's offer is good, but it may be no match for the state-owned enterprises of China and their deep, state-owned pockets. There's also talk that Xstrata may have another crack for Gloucester.
– Elders has sold its final 19.9 per cent stake in AACo to retail and institutional investors by way of a bookbuild conducted by ABN Amro Morgans and RBS Equities (the broker formerly known as ABN Amro). But while this distributes the stake among a variety of parties, the rumours that Emirates-based IFFCO could substantially increase its stake have not died down. IFFCO, or International Foodstuffs, is believed to be eyeing an even greater presence in Australia (Beefing up investments, April 28). Perhaps IFFCO is waiting for AACo's shares to fall further before it sweeps up those extra shares. AACo yesterday ended discussions with Primary Holdings International Group over the sale of five properties to raise $250 million. Either the sale will have to wait or the price will come down.
– Cephalon International's declaration that it would not increase its offer for Arana Therapeutics from $1.40 (or $1.45 once 90 per cent of shares are accepted) is set to put a dampener on expectations at the antibody research and development firm. But in case you thought the fun had run out in the bio-tech sector, the rumours say that CSL's merger with Talecris Biotherapeutics could soon be consummated, with competition authorities in the US said to soon approve the deal. Others however just can't leave the sector quickly enough with Genesis Biomedical set to start a new lease of life as Black Ridge Mining. But wait there's more. Life Therapeutics, the company associated with Michael Milne, formerly of Demtel (via Switzerland), is also changing stripes, this time to Arturus Capital.
– Allco Equity Partners is also set to change its name to Oceania Capital Partners, proving that name changes aren't just the domain of bio-techs or companies like Elders/Futuris. Sydney stockbroker Findlay Securities is also set to change its name to InvestorFirst. We like the sound of that one.
Share this article and show your support
Call 1300 880 160
Start a chat
Schedule a call
