Downer EDI Limited (DOW); Spotless Group Holdings Limited (SPO):
Downer EDI has been castigated for being a ‘‘desperate acquirer’’ after declaring its $1.2 billion takeover bid for catering, cleaning and facilities management company Spotless unconditional. Downer said on Monday that it had removed all remaining conditions to the bid after securing control of 36 per cent of Spotless by Friday night. But one fund manager accused Downer of being too desperate, warning it was similar to lifting the offer price. ‘‘Making the offer unconditional is tantamount to increasing the price and something we were staunchly against,’’ said Allan Gray managing director Simon Mawhinney. ‘‘Downer’s stance looks increasingly like that of a desperate acquirer, which is seldom a good platform for sound capital allocation.’’ The removal of all remaining conditions means Downer is able to acquire more Spotless shares over the next two weeks, even if Spotless announces a financial downgrade. Spotless reaffirmed guidance for 2016-17 net profit of between $80 million and $90 million in its Target’s Statement in April.
Wesfarmers Limited (WES); Woolworths Limited (WOW):
Local retailers take hit after $18b US move Confidence in Woolworths’ turnaround has finally been shaken, not by fears of a price war with Coles but Amazon’s $18 billion acquisition of US retailer Whole Foods, which makes the online retailer’s entry into the $90 billion Australian grocery market more likely. Woolworths shares, which have been on an upwards trajectory since January, fell almost 4 per cent to $25.33 in heavier than usual trade on Monday, posting its biggest decline since November. Coles owner Wesfarmers and Metcash also lost ground, closing down 0.2 per cent at $40.61 and 2.3 per cent at $2.10. The fall in Woolworths shares mirrored a sell-down in US food stocks last Friday after Amazon announced a proposed $US13.7 billion ($18 billion) bid for Whole Foods, triggering fears that Amazon could eventually have as big an impact on the grocery sector as it has in non-food retailing. Analysts had previously believed that Australian food retailers faced less disruption from Amazon than non-food retailers such as Myer and JB Hi-Fi, pointing to the high cost of picking and delivering fresh food and the need for local scale rather than global scale.
Lendlease Group (LLC):
Lendlease has selected one of the world’s leading architect firms, Foster + Partners, to design its new office tower, Circular Quay Tower in Sydney. Some of the world’s most famous architects started pitching their plans in December for the design of the tower, which could be worth almost $1.5 billion on completion. Global groups such as Ping An Real Estate and Mitsubishi Estate Asia have taken a a financial interest in the development of what will be city’s tallest office tower at 263 metres, as well as two public plazas, laneways and a lowrise public building. Foster + Partners beat David Chipperfield Architects, Skidmore, Owings and Merrill (SOM), HOK and Kohn Pedersen Fox Associates and local practices BVN and Hassell. Local architectural firm, Stewart Hollenstein was selected to remodel Lendlease’s Jacksons on George site.
McMillian Shakespeare Limited (MMS):
Shares in car leasing and finance group McMillan Shakespeare plunged 9 per cent on Monday after an article in The Australian Financial Review revealed the company will soon face a class action launched by customers of its warranty and add-on insurance products. McMillan Shakespeare shares fell 9 per cent in morning trade to $12.70, before recovering slightly to close down 6.2 per cent at $13.11. Financial Review columnist Adele Ferguson revealed that global litigation funder Vannin Capital and law firm Quinn Emanuel Urquhart & Sullivan plan to launch an $80 million class action against McMillan Shakespeare in the next month, alleging unfair and unconscionable conduct and misleading and deceptive conduct in its extended car warranty business, which is called Davantage and trades as National Warranty Companies (NWC).
(Source: AIMS)
Downer EDI has been castigated for being a ‘‘desperate acquirer’’ after declaring its $1.2 billion takeover bid for catering, cleaning and facilities management company Spotless unconditional. Downer said on Monday that it had removed all remaining conditions to the bid after securing control of 36 per cent of Spotless by Friday night. But one fund manager accused Downer of being too desperate, warning it was similar to lifting the offer price. ‘‘Making the offer unconditional is tantamount to increasing the price and something we were staunchly against,’’ said Allan Gray managing director Simon Mawhinney. ‘‘Downer’s stance looks increasingly like that of a desperate acquirer, which is seldom a good platform for sound capital allocation.’’ The removal of all remaining conditions means Downer is able to acquire more Spotless shares over the next two weeks, even if Spotless announces a financial downgrade. Spotless reaffirmed guidance for 2016-17 net profit of between $80 million and $90 million in its Target’s Statement in April.
Wesfarmers Limited (WES); Woolworths Limited (WOW):
Local retailers take hit after $18b US move Confidence in Woolworths’ turnaround has finally been shaken, not by fears of a price war with Coles but Amazon’s $18 billion acquisition of US retailer Whole Foods, which makes the online retailer’s entry into the $90 billion Australian grocery market more likely. Woolworths shares, which have been on an upwards trajectory since January, fell almost 4 per cent to $25.33 in heavier than usual trade on Monday, posting its biggest decline since November. Coles owner Wesfarmers and Metcash also lost ground, closing down 0.2 per cent at $40.61 and 2.3 per cent at $2.10. The fall in Woolworths shares mirrored a sell-down in US food stocks last Friday after Amazon announced a proposed $US13.7 billion ($18 billion) bid for Whole Foods, triggering fears that Amazon could eventually have as big an impact on the grocery sector as it has in non-food retailing. Analysts had previously believed that Australian food retailers faced less disruption from Amazon than non-food retailers such as Myer and JB Hi-Fi, pointing to the high cost of picking and delivering fresh food and the need for local scale rather than global scale.
Lendlease Group (LLC):
Lendlease has selected one of the world’s leading architect firms, Foster + Partners, to design its new office tower, Circular Quay Tower in Sydney. Some of the world’s most famous architects started pitching their plans in December for the design of the tower, which could be worth almost $1.5 billion on completion. Global groups such as Ping An Real Estate and Mitsubishi Estate Asia have taken a a financial interest in the development of what will be city’s tallest office tower at 263 metres, as well as two public plazas, laneways and a lowrise public building. Foster + Partners beat David Chipperfield Architects, Skidmore, Owings and Merrill (SOM), HOK and Kohn Pedersen Fox Associates and local practices BVN and Hassell. Local architectural firm, Stewart Hollenstein was selected to remodel Lendlease’s Jacksons on George site.
McMillian Shakespeare Limited (MMS):
Shares in car leasing and finance group McMillan Shakespeare plunged 9 per cent on Monday after an article in The Australian Financial Review revealed the company will soon face a class action launched by customers of its warranty and add-on insurance products. McMillan Shakespeare shares fell 9 per cent in morning trade to $12.70, before recovering slightly to close down 6.2 per cent at $13.11. Financial Review columnist Adele Ferguson revealed that global litigation funder Vannin Capital and law firm Quinn Emanuel Urquhart & Sullivan plan to launch an $80 million class action against McMillan Shakespeare in the next month, alleging unfair and unconscionable conduct and misleading and deceptive conduct in its extended car warranty business, which is called Davantage and trades as National Warranty Companies (NWC).
(Source: AIMS)
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