BREAKFAST DEALS: Restless Rio

Rio Tinto's Alcan division has sold down its Ghana Bauxite Company stake to Bosai Minerals of China.

Rio Tinto

As Rio Tinto edges up on positive analyst sentiment and warns that industrial unrest in WA might spread to its key iron ore operations, its Alcan division has quietly sold down its Ghana Bauxite Company stake to the privately held Bosai Minerals of China. The world's third-biggest miner has offloaded its 80 per cent holding for an undisclosed sum, saying the operation is not aligned with its long-term strategy. The Ghanaian government will retain its 20 per cent stake. The deal with Bosai – whose main products are alumina, aluminium, calcined bauxite, coke and coal – comes as resource-hungry China and capital- and infrastructure-hungry African nations strengthen ties, with trade between China and the continent valued at more than $100 billion annually. Meanwhile in broker land, Citi has slapped an $85 price tag on Rio, well above its current trading price, while Bank of America Merrill Lynch sees more room on the balance sheet for investment opportunities, with the most recent talk focused on the Kerry Stokes-backed Iron Ore Holdings or Canada's Ivanhoe Mines.

Macquarie Group, Sal. Oppenheim

As expected, Macquarie Group has snapped up the equity research, sales and trading assets of European private bank Sal. Oppenheim. The deal, for an undisclosed sum, will see the silver donut take on 50 employees from the centuries-old business. The deal follows the December purchase of the Luxembourg-based bank's equity derivatives and structured products business and continues Macquarie's European and US expansion plans. Germany's Deutsche expects to complete its purchase of Sal. Oppenheim's wealth and asset management arms in the second quarter. More acquisitions for Macquarie, which releases its trading update on Tuesday, have been tipped by UBS, with much of the recent buzz centred on the possible purchase of Royal Bank of Scotland's multi-billion-dollar stake in commodity trading business RBS Sempra now that frontrunner JPMorgan seems to have lost enthusiasm.

ANZ Banking Group, Westpac Banking Corp

Meanwhile, Asia-focussed ANZ Banking Group has become the first foreign bank to be granted a universal banking licence in the Philippines. ANZ, which has traded under a commercial banking licence since 1995 and has just one branch in Manila, will now be able to operate as an investment house and invest in non-allied enterprises. Meanwhile, The Australian Financial Review is flagging talk of a raising by Westpac Banking Group, possibly tier 2 issues to institutional or retail investors. The bank, meanwhile, confirmed yesterday that it was undertaking a strategic review of Westpac Funds Management and its property funds management business.

Garuda

Following the better-than expected Singapore IPO of Tiger Airways, Indonesia's Garuda says it might go ahead with a float in the middle of this year, after long-standing plans were delayed because of debt and safety concerns. Chief executive Emirsyah Satar says the state-owned carrier – which produced a turnaround profit in 2008 on cost-cutting and growing strength in the domestic travel market – has nearly completed the restructure of debt worth $US760 million, and is looking to raise $US300 million through an IPO to fund long-term growth plans. The airline – which flies to Australia – plans to expand into different regions, particularly Europe, and is looking to boost its fleet numbers over the next five years to 116 from the current 67. And adding weight to comments that the low-cost carrier sector is not dead, the CEO says Garuda is in the middle of getting regulatory approval for setting up a low-cost carrier by the year's end. The comments follow some positivity from Australia's local carriers, with Virgin Blue Holdings just tipping a return to profit in FY2010 as the average cost of fuel declines and domestic route yields improve.

Austar United Communications, Liberty Global, Consolidated Media, Foxtel

Over to media, and there's talk regional pay TV operator Austar – long-time touted as a merger partner for Foxtel - might be put up for sale after some multi-billion-dollar deals by its majority shareholder. Liberty Global, which owns more than 50 per cent of Austar, has just sold its 38 per cent stake in Japanese cable TV giant Jupiter Telecommunications for $US4 billion, and will take over German cable giant Unity Media for around €2.5 billion. But the CEO, Mike Fries, really got things going by saying the cable TV group was "clearly shifting resources to Europe.” According to The Australian, Seven Network is no longer considered a likely acquirer of Austar given its significant stake in Consolidated Media. This follows rumours of a merger between ConsMedia and Seven Media, and a report that Foxtel last year raised the idea of merging with Premier Media Group.

Wrapping up

The CSR board is set to meet on Monday after the Federal Court blocked the demerger of its sugar business this week, with The Australian Financial Review reporting source comments that alternatives to a spin-off are looking more likely, with a decision on where-to next unlikely for weeks. Elsewhere, the Pratt family has declined to comments on a report that the Pact Group business might be set for an IPO in the middle of the year, while the Herald Sun says Maurice Blackburn might join Slater & Gordon as a listed law firm, with the Melbourne-based company understood to have hired Oaktower Partnership to advise on its options and refusing to rule out a float. Meanwhile, just as news trickles in that Merrill Lynch has poached five members of Bell Potter's property team , The Australian is reporting rumours that Southern Cross Equities, bought by Bell Potter in 2008, accounted for more than 60 per cent of the merged group's profit over the past year, which pressures the broker given key Southern Cross principals are on an earnout that expires in June 2011.