ECONOMY
Australia still triple-A
Australia's top-notch credit rating has been affirmed, highlighting the contrast between the nation's economic health and the difficulties being experienced overseas. Moody's said yesterday the Australian economy's resilience was "very high" due to its low public debt and strong financial position. The Treasurer, Wayne Swan, said the comments showed Australia's economic strengths were unmatched by "just about any other developed economy".
TAKEOVERS
Hastings bolsters defence
Hastings Diversified Utilities has ramped up its takeover defence, yesterday disclosing a new $460 million gas transportation contract from 2015 needing no further capital spending and which will boost dividends "materially". APA Holdings is offering 0.326 shares and 50? cash for each Hastings share held. Hastings has rejected the offer. The contract "reinforces our belief that the APA bid ... significantly undervalues our stock", Hastings said. The takeover offer is worth only $1.92 a share, not the $2 stated by APA, Hastings said.
CLASS ACTION
ANZ litigants appeal
An appeal has been lodged in a class action against ANZ over allegedly unlawful fees. Justice Michelle Gordon ruled earlier this month that late fees charged by ANZ on credit cards could be characterised as a penalty and may be legally unenforceable. However, honour fees, dishonour fees, overlimit fees and non-payment fees were not characterised as a penalty but as fees for services provided by the bank, Justice Gordon ruled. Law firm Maurice Blackburn said it had lodged an appeal in the Federal Court in Melbourne against the ruling on honour, dishonour and overlimit fees.
FARMING
Wheat downgrade fears
Western Australia, set to be the nation's largest wheat producer, may see further crop quality downgrades after significant rainfall this month, according to Bankwest predictions. "It's bad," Peter Rowe, manager of agribusiness projects and strategy at the lender, said. About 25 per cent of deliveries since last week may be downgraded to feed quality, he said. The state may produce 10.1 million tonnes of wheat, the Australian Bureau of Agricultural and Resource Economics and Sciences said this month.
TELECOMS
iiNet seals Internode deal
Internet service provider iiNet has announced a second purchase in as many months with the buying of South Australia-based Internode for $105 million. The payment will be a mixture of cash and shares, iiNet said in a statement to the ASX yesterday. The iiNet chief executive, Michael Malone, said the deal with Internode would strengthen the company's position, with the arrival of the national broadband network. The company said Internode would trade as a separate business unit under the management of founder Simon Hackett. Last month, iiNet announced a binding agreement to buy Canberra's TransACT for $60 million.
Frequently Asked Questions about this Article…
Why did Moody's affirm Australia's AAA credit rating?
Moody's said Australia's economic resilience is "very high" thanks to low public debt and a strong financial position. The Treasurer, Wayne Swan, said the comments underline Australia’s economic strengths compared with most other developed economies.
What is Hastings Diversified Utilities' $460 million gas transportation contract and how does it affect the company's takeover defence?
Hastings disclosed a new $460 million gas transportation contract starting in 2015 that reportedly requires no further capital spending and will "materially" boost dividends. The board says the contract strengthens its takeover defence by reinforcing their view that the APA offer significantly undervalues the company.
What did APA Holdings offer for Hastings and why did Hastings reject the takeover bid?
APA offered 0.326 shares plus a cash component for each Hastings share. Hastings rejected the bid, saying it undervalues the stock and arguing the offer is worth only $1.92 a share, not the $2 per share APA claimed.
What did the court rule in the ANZ class action over credit card fees?
Justice Michelle Gordon ruled that late fees charged by ANZ on credit cards could be characterised as a penalty and may be legally unenforceable. However, honour fees, dishonour fees, overlimit fees and non‑payment fees were characterised as fees for services provided and not as penalties.
What legal steps have litigants taken in the ANZ fees case?
Law firm Maurice Blackburn has lodged an appeal in the Federal Court in Melbourne challenging the ruling that honour, dishonour and overlimit fees are not penalties.
How could recent rain affect Western Australia's wheat crop and what does that mean for farmers and grain quality?
Bankwest warned that heavy rain could cause further crop quality downgrades in Western Australia, with about 25% of recent deliveries possibly downgraded to feed quality. The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) expects the state to produce around 10.1 million tonnes of wheat.
What did iiNet's acquisition of Internode involve and why is it relevant to investors?
iiNet agreed to buy South Australia‑based Internode for $105 million in a mix of cash and shares. CEO Michael Malone said the deal will strengthen iiNet's position ahead of the national broadband network (NBN). Internode will trade as a separate business unit under founder Simon Hackett.
How do iiNet's recent purchases (Internode and TransACT) relate to its strategy for the national broadband network (NBN)?
iiNet's acquisitions — Internode for $105 million and a binding agreement to buy Canberra's TransACT for $60 million — are positioned to bolster the company's national scale and capabilities as the NBN is rolled out. Management says keeping acquired brands and leadership (for example, Internode under Simon Hackett) will help preserve customer relationships and service strength.
Call 1300 880 160
Start a chat
Schedule a call
