Blackmores Limted (BKL):
Departing Blackmores chief executive Christine Holgate says an internal successor would be ideal as a motivating tool for the staff the $1.5 billion vitamins company, and for stability after a rollercoaster ride. Ms Holgate said there were several highly credentialled internal candidates, but she declined to specify who might be the favourite to clinch the role. She also intended to remain a long-term large shareholder in Blackmores and keep her stake which currently sits at 46,000 direct shares worth $4.14 million because of the strong upside the company offered as a longterm investment. ‘‘I think it’s really motivating for staff if they see an internal person get the gig,’’ Ms Holgate told The Australian Financial Review.‘‘It also creates stability.’’ Two of the strongest internal candidates to take over as full-time chief executive when Ms Holgate officially departs at the end of September are David Fenlon, the Blackmores Australasian managing director, and Peter Osborne, the Blackmores managing director for Asia. Other internal candidates likely to be in the mix are chief financial officer Aaron Canning and chief operating officer, central services, Richard Henfrey. Ms Holgate said the final decision would be up to the board, but she would ‘‘have some input’’. Ms Holgate, who is leaving to become the chief executive of Australia Post, said she remained a huge believer in the long-term potential of Blackmores, even though it has been on a rollercoaster ride over the past two years as the share price slumped from $220 in January 2016 to $89.91 at the close of trading on Tuesday. In early 2014, the Blackmores share price was just $20.
Commonwealth Bank of Australia (CBA):
The Commonwealth Bank of Australia has joined rivals ANZ, National Australia Bank and Westpac in jacking up interest-only home loan rates to meet new lending restrictions. The nation’s largest lender said interest-only mortgages to owneroccupied borrowers would increase by 30 basis points to 5.77 per cent from July 7while interest-only loans to investors would increase by 30 basis points to 6.24 per cent. Owner-occupied principal-andinterest loans would be lowered by 3 basis points to 5.22 per cent. CBA group executive of retail banking services Matt Comyn said the changes would help keep ‘‘the right balance in our home loan portfolio, in line with what our regulators require’’.
Downer EDI (DOW):
Downer EDI has now snared more than 50 per cent of cleaning, catering and facilities management group Spotless, giving chief executive Grant Fenn the opportunity to create Australia’s biggest infrastructure services company. The passing of the crucial 50 per cent mark late on Tuesday morning, giving Downer control of Spotless, has changed the dynamics of the drawnout takeover tussle that has been going on since March. The deadline for investors to accept the $1.15 per share takeover bid has now also been extended by two weeks to July 11. The Spotless chairman Garry Hounsell said on Tuesday after control had passed that the company would now hold talks with Downer about the composition of the Spotless board.
Fortescue Metals Groups Ltd (FMG):
Fortescue Metals Group is examining conveyor-belt technology that could reduce the amount of infrastructure needed at its mines of the future. The Pilbara iron ore producer revealed on Tuesday it would trial ‘‘an innovative relocatable conveyor’’ at its Cloudbreak mine as part of its ongoing studies on how to replace its ageing Firetail mine. Firetail needs to be replaced from about 2021 at an anticipated capital cost of $US1 billion ($1.3 billion) to $US1.5 billion. Fortescue is considering two options for its replacement – the Eliwana deposit at its Western Hub or the Nyidinghu Hub. It is understood the trial is designed to test what cost and productivity benefits an overland conveyor could offer for Fortescue’s Firetail replacement mine as its iron ore rivals increasingly look to the technology to lower costs by reducing the need for as many trucks. R
QBE Insurance Group Limited (QBE):
QBE Insurance Group says it was uncertain about the combined financial health of its four global divisions until a board meeting on June 21, less than a month after it assured investors at its annual meeting it was confident it would meet its 2017 targets. On Tuesday, the $15.2 billion insurer was forced by the ASX to explain why it had not disclosed higher-thanexpected claims in its emerging markets division sooner – last week’s surprise earnings downgrade sparked a $2 billion selloff of its shares, which collapsed more than 10 per cent. In a response to the ASX questions, QBE group general counsel Carolyn Scobie said it was not until its board meeting on June 21 that ‘‘the financial condition of each of its global divisions, including the emerging markets division, had been clarified and confirmed’’.
（Source: AIMS）
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