AGL Energy Limited (AGL):
AGL Energy is set to announce a new 210-megawatt gas-fired power plant in energy-starved South Australia, apparently having rapidly reworked the investment blueprint for the state that it ditched in March. The project, to be formally announced early Wednesday by chief executive Andy Vesey, will see the major utility replace part of its ageing Torrens Island gas-fired generator in outer Adelaide with the more modern unit. Mr Vesey told analysts in early April that AGL had temporarily frozen investment plans for South Australia while it assessed the market impact of the state government’s $550 million energy plan announced by Premier Jay Weatherill on March 14.
Bega Cheese Limited (BGA); Fonterra Shareholders’ Fund (FSF); MG Unit Trust (MGC):
Murray Goulburn’s decision to offer dairy farmers a lower-than-expected milk price has set the scene for a major upheaval of the dairy industry, as rival processors weigh up whether to break ranks and exact further pain on the besieged co-operative by offering a higher price. Murray Goulburn, the nation’s biggest dairy processor, set its opening milk price at $4.70 per kilogram of milk solids, which farmers argue is below the cost of production and could force some to leave for rival companies or quit their farms. The pricing decision, which is about a fortnight earlier than usual, came as Murray Goulburn announced a wideranging strategic review, which will include its capital structure and controversial profit sharing mechanism. United Dairy Farmers of Victoria president Adam Jenkins said anything below $5 per kg was ‘‘pretty challenging for farmers’’. He said farmers were waiting to see the response from rival processors including Fonterra, Warrnambool Cheese & Butter Factory and Bega Cheese.
BHP Billiton Limited (BHP):
Activist campaigns launched by two hedge funds against BHP Billiton have received a boost after a survey suggested that almost 50 per cent of the miner’s shareholders believe ‘‘major changes’’ to the company’s structure and operations are warranted. Results of a phone survey of 1000 retail shareholders in BHP were published on Tuesday by investor services company Global Proxy Solicitation, in the wake of calls for change from Elliott Associates and Tribeca Investment Partners. The survey was conducted between May 24 and May 29, about a week after Elliott lobbed its second attack on BHP. Almost 48 per cent of shareholders surveyed said they agreed with ‘‘Elliot’s view that major changes to the company’s operations and structure are warranted to create greater value’’. Just 15.33 per cent said they did not agree, with almost 38 per cent uncertain.
National Australian Bank Limited (NAB); Westpac Banking Corporation (WBC):
The venture capital funds of Westpac Banking Corp and National Australia Bank have co-invested in Basiq, a start-up that scrapes financial data from bank webpages to help fintechs compete with incumbent banks. Taking advantage of the government’s moves to create an economy where data moves more openly, it plans to morph into a banking platform that uses ‘‘application programming interfaces’’ (APIs, or software connecting computers) to improve customer experience of financial services. The seed investment by Reinventure Group, Westpac’s venture capital fund, and NAB Ventures comes after Treasurer Scott Morrison said in last month’s budget an ‘‘open banking’’ regime would be created, liberating customer banking data. The Productivity Commission, and a parliamentary committee being chaired by David Coleman, have also called for the establishment of data-sharing regimes.
Downer EDI Limited (DOW); Spotless Group Holdings Limited (SPO):
Downer EDI needs to roll the dice if it is to have any chance of making good on a $1.3 billion pledge to buy Spotless Group. What started as one of the most aggressive takeover approaches in recent memory – remember the raid, a binding bid without diligence or target board approval and a $1 billion rights issue on announcement – has turned into a game of blink. No doubt scarred by the reactions of some of its own shareholders, Downer is waiting for the end of the month to see whether Spotless downgrades earnings. If it does, Downer’s bid is off. Downer needs hedge funds to roll into the bid to get anywhere near the minimum 50 per cent hurdle and assume contro.
(Source: AIMS)
AGL Energy is set to announce a new 210-megawatt gas-fired power plant in energy-starved South Australia, apparently having rapidly reworked the investment blueprint for the state that it ditched in March. The project, to be formally announced early Wednesday by chief executive Andy Vesey, will see the major utility replace part of its ageing Torrens Island gas-fired generator in outer Adelaide with the more modern unit. Mr Vesey told analysts in early April that AGL had temporarily frozen investment plans for South Australia while it assessed the market impact of the state government’s $550 million energy plan announced by Premier Jay Weatherill on March 14.
Bega Cheese Limited (BGA); Fonterra Shareholders’ Fund (FSF); MG Unit Trust (MGC):
Murray Goulburn’s decision to offer dairy farmers a lower-than-expected milk price has set the scene for a major upheaval of the dairy industry, as rival processors weigh up whether to break ranks and exact further pain on the besieged co-operative by offering a higher price. Murray Goulburn, the nation’s biggest dairy processor, set its opening milk price at $4.70 per kilogram of milk solids, which farmers argue is below the cost of production and could force some to leave for rival companies or quit their farms. The pricing decision, which is about a fortnight earlier than usual, came as Murray Goulburn announced a wideranging strategic review, which will include its capital structure and controversial profit sharing mechanism. United Dairy Farmers of Victoria president Adam Jenkins said anything below $5 per kg was ‘‘pretty challenging for farmers’’. He said farmers were waiting to see the response from rival processors including Fonterra, Warrnambool Cheese & Butter Factory and Bega Cheese.
BHP Billiton Limited (BHP):
Activist campaigns launched by two hedge funds against BHP Billiton have received a boost after a survey suggested that almost 50 per cent of the miner’s shareholders believe ‘‘major changes’’ to the company’s structure and operations are warranted. Results of a phone survey of 1000 retail shareholders in BHP were published on Tuesday by investor services company Global Proxy Solicitation, in the wake of calls for change from Elliott Associates and Tribeca Investment Partners. The survey was conducted between May 24 and May 29, about a week after Elliott lobbed its second attack on BHP. Almost 48 per cent of shareholders surveyed said they agreed with ‘‘Elliot’s view that major changes to the company’s operations and structure are warranted to create greater value’’. Just 15.33 per cent said they did not agree, with almost 38 per cent uncertain.
National Australian Bank Limited (NAB); Westpac Banking Corporation (WBC):
The venture capital funds of Westpac Banking Corp and National Australia Bank have co-invested in Basiq, a start-up that scrapes financial data from bank webpages to help fintechs compete with incumbent banks. Taking advantage of the government’s moves to create an economy where data moves more openly, it plans to morph into a banking platform that uses ‘‘application programming interfaces’’ (APIs, or software connecting computers) to improve customer experience of financial services. The seed investment by Reinventure Group, Westpac’s venture capital fund, and NAB Ventures comes after Treasurer Scott Morrison said in last month’s budget an ‘‘open banking’’ regime would be created, liberating customer banking data. The Productivity Commission, and a parliamentary committee being chaired by David Coleman, have also called for the establishment of data-sharing regimes.
Downer EDI Limited (DOW); Spotless Group Holdings Limited (SPO):
Downer EDI needs to roll the dice if it is to have any chance of making good on a $1.3 billion pledge to buy Spotless Group. What started as one of the most aggressive takeover approaches in recent memory – remember the raid, a binding bid without diligence or target board approval and a $1 billion rights issue on announcement – has turned into a game of blink. No doubt scarred by the reactions of some of its own shareholders, Downer is waiting for the end of the month to see whether Spotless downgrades earnings. If it does, Downer’s bid is off. Downer needs hedge funds to roll into the bid to get anywhere near the minimum 50 per cent hurdle and assume contro.
(Source: AIMS)
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