Australia and New Zealand Banking Group (ANZ); Commonwealth Bank of Australia (CBA); National Australia Bank Ltd (NAB); Westpac Banking Corp (WBC):
Global bank shares have been a major beneficiary of the Trump trade, premised as it is on the promise of progrowth, anti-regulation and inflationary policies that are also expected to lift interest rates. Australian banks have likewise benefited, with the sector up approximately 20 per cent since Donald Trump’s presidential election win in the US. However, now that we’re most of the way through the banks’ half-year results (Westpac Banking Corp reports on Monday morning), it seems the reality is more subdued. In the words of ANZ Banking Group’s CEO Shayne Elliott: ‘‘The environment for banking remains constrained, with intense competition and pressure on margins, subdued lending growth, rapidly changing customer expectations and increasing regulation.’’
Downer EDI Limited (DOW); Spotless Group Holdings Ltd (SPO):
Downer EDI, which has launched a hostile takeover for Spotless, has pledged to overhaul the services company if its $1.2 billion acquisition is successful. Downer chief executive Grant Fenn said last week the contractor planned to bring a culture of ‘‘accountability’’ to Spotless if its takeover was successful, including implementing ‘‘robust business plans’’. Spotless’ board has rejected the bid but investors have until May 31 to accept Downer’s takeover bid of $1.15 per share in cash.
Fairfax Media Limited (FXJ):
TPG Capital is back with a new breakup plan for Fairfax Media. As revealed by Street Talk on Sunday, the private equity giant has made a cash offer to buy Fairfax’s crown jewels – the Domain online real estate business – along with the company’s three biggest mastheads, events and digital ventures (excluding online streaming network Stan). Left behind would be Fairfax’s New Zealand business, which had been seeking to merge with fellow publishing group NZME, Fairfax’s Australian regional newspaper unit, its stake in the Macquarie Media radio venture and a 50 per cent share of Stan.
Mirvac Group (MGR):
Hundreds of homebuyers squeezed into Mirvac’s display suite in Sydney Olympic Park six weeks ago in the hope of snapping up apartments at its latest project, Pavilions. Hundreds of homebuyers squeezed into Mirvac’s display suite in Sydney Olympic Park six weeks ago in the hope of snapping up apartments at its latest project, Pavilions. People queuing to buy homes in Sydney are not a new phenomenon. And especially when Mirvac was offering first home buyers first dibs to buy 60 apartments at a time when the city is struggling with a housing affordability crisis.
QBE Insurance Group Ltd (QBE):
QBE chief executive John Neal likens the rush to find the next big thing in insurance technology to being a kid in a candy store, but says the ASX-listed insurer is taking a much more wholesome approach by partnering with start-ups that add immediate value. Mr Neal told The Australian Financial Review that the $17 billion global insurer was readying to partner with ‘‘around three or four’’ so-called insurtech businesses across Australia, Britain and the US. ‘‘When you see insurtech, it’s a like being in a sweetie shop as a kid. You almost want to invest in everything. The ideas are great,’’ he said.
Ten Network Holdings Limited (TEN):
News Corporation’s long-rumoured desire to bring Network Ten into the fold is well documented. The media conglomerate exudes a fair amount of power and control over the free-to-air broadcaster through a 7.7 per cent stake held by News Corp co-chair Lachlan Murdoch and a 13.9 per cent holding via Foxtel, of which it owns 50 per cent. Unfortunately for News Corp, and considering the current situation some would argue for Ten, it cannot buy the metropolitan network due to media ownership regulations. The government is trying to remove the ‘‘two out of three rule’’, which prevents the ownership of a TV station, radio network and newspaper in the same market, and the ‘‘reach rule’’, which prevents a TV network from broadcasting to more than 75 per cent of the population.
Praemium Ltd (PPS):
Michael Ohanessian, the former boss of ASX-listed platform Praemium sacked this year, is likely to get his job back if a shareholder move to roll the board and install a new chairman succeeds this week. In February, a board-led push to hire Flagstaff Partners to advise on the $160 million investment platform provider’s strategic direction led to simmering tensions between Praemium chairman Greg Camm and Mr Ohanessian spilling over into a heated argument that led to his shock sacking.
(Source: AIMS)
Global bank shares have been a major beneficiary of the Trump trade, premised as it is on the promise of progrowth, anti-regulation and inflationary policies that are also expected to lift interest rates. Australian banks have likewise benefited, with the sector up approximately 20 per cent since Donald Trump’s presidential election win in the US. However, now that we’re most of the way through the banks’ half-year results (Westpac Banking Corp reports on Monday morning), it seems the reality is more subdued. In the words of ANZ Banking Group’s CEO Shayne Elliott: ‘‘The environment for banking remains constrained, with intense competition and pressure on margins, subdued lending growth, rapidly changing customer expectations and increasing regulation.’’
Downer EDI Limited (DOW); Spotless Group Holdings Ltd (SPO):
Downer EDI, which has launched a hostile takeover for Spotless, has pledged to overhaul the services company if its $1.2 billion acquisition is successful. Downer chief executive Grant Fenn said last week the contractor planned to bring a culture of ‘‘accountability’’ to Spotless if its takeover was successful, including implementing ‘‘robust business plans’’. Spotless’ board has rejected the bid but investors have until May 31 to accept Downer’s takeover bid of $1.15 per share in cash.
Fairfax Media Limited (FXJ):
TPG Capital is back with a new breakup plan for Fairfax Media. As revealed by Street Talk on Sunday, the private equity giant has made a cash offer to buy Fairfax’s crown jewels – the Domain online real estate business – along with the company’s three biggest mastheads, events and digital ventures (excluding online streaming network Stan). Left behind would be Fairfax’s New Zealand business, which had been seeking to merge with fellow publishing group NZME, Fairfax’s Australian regional newspaper unit, its stake in the Macquarie Media radio venture and a 50 per cent share of Stan.
Mirvac Group (MGR):
Hundreds of homebuyers squeezed into Mirvac’s display suite in Sydney Olympic Park six weeks ago in the hope of snapping up apartments at its latest project, Pavilions. Hundreds of homebuyers squeezed into Mirvac’s display suite in Sydney Olympic Park six weeks ago in the hope of snapping up apartments at its latest project, Pavilions. People queuing to buy homes in Sydney are not a new phenomenon. And especially when Mirvac was offering first home buyers first dibs to buy 60 apartments at a time when the city is struggling with a housing affordability crisis.
QBE Insurance Group Ltd (QBE):
QBE chief executive John Neal likens the rush to find the next big thing in insurance technology to being a kid in a candy store, but says the ASX-listed insurer is taking a much more wholesome approach by partnering with start-ups that add immediate value. Mr Neal told The Australian Financial Review that the $17 billion global insurer was readying to partner with ‘‘around three or four’’ so-called insurtech businesses across Australia, Britain and the US. ‘‘When you see insurtech, it’s a like being in a sweetie shop as a kid. You almost want to invest in everything. The ideas are great,’’ he said.
Ten Network Holdings Limited (TEN):
News Corporation’s long-rumoured desire to bring Network Ten into the fold is well documented. The media conglomerate exudes a fair amount of power and control over the free-to-air broadcaster through a 7.7 per cent stake held by News Corp co-chair Lachlan Murdoch and a 13.9 per cent holding via Foxtel, of which it owns 50 per cent. Unfortunately for News Corp, and considering the current situation some would argue for Ten, it cannot buy the metropolitan network due to media ownership regulations. The government is trying to remove the ‘‘two out of three rule’’, which prevents the ownership of a TV station, radio network and newspaper in the same market, and the ‘‘reach rule’’, which prevents a TV network from broadcasting to more than 75 per cent of the population.
Praemium Ltd (PPS):
Michael Ohanessian, the former boss of ASX-listed platform Praemium sacked this year, is likely to get his job back if a shareholder move to roll the board and install a new chairman succeeds this week. In February, a board-led push to hire Flagstaff Partners to advise on the $160 million investment platform provider’s strategic direction led to simmering tensions between Praemium chairman Greg Camm and Mr Ohanessian spilling over into a heated argument that led to his shock sacking.
(Source: AIMS)
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