Australia and New Zealand Banking Group (ANZ); Commonwealth Bank of Australia (CBA):
National Australia Bank Limited (NAB; Westpac Banking Corporation (WBC); Australia’s big four banks are preparing to battle for one of the market’s biggest banking contracts. Street Talk understands Victoria’s Department of Treasury and Finance wrote to the banks last week, pointing out that its existing $50 million-plus-ayear contract with Westpac Banking Corp would expire next year and seeking ideas for the next agreement. The existing seven-year contract – worth more than $200 million when signed as a five-year deal with Westpac in 2011 – expires in September 2018. It’ll be interesting to see whether Commonwealth Bank, ANZ or NAB – or a bolter – can knock off the incumbent.
BHP Billiton Limited (BHP); Rio Tinto Limited (RIO):
West Australian Treasurer Ben Wyatt says he won’t give up on a push to get BHP Billiton and Rio Tinto to ‘‘cash out’’ a production levy, despite the miners telling him in meetings over the past 48 hours they are not on board with the plan. In meetings with senior members of the state government on Monday and Tuesday, BHP and Rio are understood to have raised concerns about the government’s suggestion that they pay billions up front to cash out the 25¢-a-tonne production levy they pay the state. The levy was the target of a fierce campaign by the WA Nationals in the lead-up to the March state election, with the Nationals arguing the decades-old charge should be increased to $5 a tonne. The new Labor government’s suggestion the miners cash out the levy to help repair the state’s finances is not new – it was offered by the Liberal Barnett government last year – and would only go ahead if the miners agreed and the federal government was willing to exclude it from the goods and services tax.
Investa Office Fund (IOF):
A crucial, controversial proposal by Investa Office Fund to buy into its own management platform will go down to the wire at a shareholder vote on Wednesday in Sydney. The partial internalisation plan, through a $45 million deal with IOF’s unlisted sister fund Investa Commercial Property Fund, has already been condemned by two major proxy advisers, CGI Glass Lewis and Institutional Shareholder Services. Those rejections could be enough to sway shareholders against the plan, along with the 9.8 per cent stake that takeover suitor Cromwell Property Group has vowed to vote against the plan. The proposal to establish a jointly run platform is seen by Cromwell as a potential thorn in its side as it pursues its own near $3 billion ambition to take over the listed office trust.
Myer Holdings Limited (MYR):
Retailers David Jones and Myer are slashing prices on autumn/winter apparel by as much as 50 per cent after pulling the trigger on mid-year clearance sales following the weakest retail trading in five years. David Jones’ clearance sale kicked off on Tuesday, just as the first cold snap for the season sent Sydneysiders scurrying for winter coats and scarfs. Myer’s clearance starts on Thursday, in line with last year’s mid-year stocktake sale but at least two weeks earlier than in 2014. The retailer will give customers a preview in stores and online on Wednesday, including offering Myer One loyalty card members an exclusive discount offer. Myer will take 40 per cent off selected women’s clothing, including popular brands Veronika Maine, SEED, Country Road and SABA, 60 per cent off small appliances such as Tefal and Kenwood, and 50 per cent off selected Manchester.
Countplus Limited (CUP):
It will take up to two years to fix the ‘‘challenging business model’’ problems of Countplus, according to the chief executive of the listed accounting and financial planning company. Matthew Rowe, who took on the CEO role in February, revealed that Countplus was in active discussions with six firms to join the 20-odd strong Countplus network and that two member firms were seeking to exit. ‘‘The main problem, from my point of view, is a lack of alignment with the talent in our firm and that’s around remuneration and equity ownership,’’ Mr Rowe told The Australian Financial Review. Countplus has full ownership of its member firms, a structure Mr Rowe wants to change.
(Source: AIMS)
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