Australia and New Zealand Banking Group (ANZ):
As mentioned oh-so-briefly below, ANZ has reached a surprise settlement with ASIC thought to be more than $50 million in a surprise development on the first day of the bank bill swap rate trial. Lawyers acting for the bank requested for the hearing to be stood down for 48 hours on the basis that the settlement may create difficulties for the other parties. Justice Beach granted the adjournment soon after. ASIC launched the controversial action against ANZ, NAB and Westpac for allegedly rigging the BBSW, a key benchmark interest rate, to increase their profits. ANZ told the Federal Court this morning it has brokered a last-minute deal with the corporate regulator to settle the longrunning bank bill swap rate case. ANZ declined to say how much the deal was worth only that it had reached a confidential in principle agreement with the regulator. Last-minute talks resumed over the weekend and while NAB and Westpac are expected to fight on, multiple sources suggested that ANZ, has settled the case with a payment that is thought to be not much more than the $50 million the bank offered last year.
Beach Energy Ltd (BPT):
Beach Energy's acquisition of Origin Energy's conventional upstream oil & gas assets, Lattice Energy, provides a "transformational step-change in scale," for Beach, Goldman Sachs reckons. The research team, led by Mark Wiseman, says may of the assets are a logical and strategic fit, "given they are smaller-scale operated oil & gas facilities within the Australia/New Zealand region - areas in which Beach has experience, and some with common ownership." Wiseman notes there are clear opportunities for synergy capture in bringing these assets into Beach, particularly given Beach has already demonstrated its ability to harvest synergies, from the Drillsearch acquisition. Goldman estimates the transaction could be net asset value accretive to Beach by approximately between 1 per cent and 24 per cent. The transaction is subject to New Zealand government approval, which Beach has suggested may take until first quarter 2018.
Myer Holdings Ltd(MYR):
Myer's incoming and outgoing chairmen have pre-empted a strike by major shareholder Solomon Lew at the annual meeting by launching a spirited defense of the retailer's turnaround strategy and board composition. In letters accompanying the notice of meeting for the AGM on November 24, chairman-elect Garry Hounsell said he had confidence in the New Myer strategy and the capability and skills of the board and management to deliver it. "The evidence to date demonstrates that underlying earnings have been stabilized and our competitive position has been strengthened, but there is much more to do," said Mr Hounsell, who is set to succeed Paul McClintock as chairman if he is elected to the board at the AGM. "Second, you need the right skills on the board and in senior management not only to deliver the strategy but also to ensure it is capable of evolving to meet market conditions," he said.
National Australia Bank (NAB):
National Australia Bank is the next big bank likely to settle with the corporate regulator in its case for allegedly fixing the bank bill swap rate, following ANZ Banking Group's surprise estimated $50 million settlement on Monday. NAB was part of last-minute negotiations over the weekend which led to the ANZ deal which sources said would result in ANZ paying a fine of around $50 million. The settlement which was revealed by The Australian Financial Review this morning was confirmed in the Federal Court in Melbourne on Monday, the first day of the four-month trial with the judge agreeing to stand the cases down for 48 hours to finalize the ANZ deal and seek court approval for the settlement. "An in-principle agreement has been reached by the commission and the the ANZ Bank to settle the claims against that bank," ASIC's counsel John Karkar QC told the court in a hearing which took just three minutes. "In the circumstances, we request your honor that all matters be stood down for 48 hours to enable the ANZ documentation to be completed."
Telstra Corporation Ltd (TLS):
The competition regulator will not force Telstra and Optus to share their mobile networks with competitors, but has called for a number of measures to improve coverage for regional Australia. On Monday, the Australian Competition and Consumer Commission ruled it would not declare domestic mobile roaming, which would force all telcos to share their networks with competitors for a price determined by the regulator. Its draft decision also ruled not to declare roaming. "The ACCC's inquiry found that declaration would likely not lead to lower prices or better coverage or quality of services for regional Australians," ACCC Chairman Rod Sims said. However, the competition regulator said its consultation with regional customers and businesses found poor mobile coverage impacts communities on a social and economic level.
Vocus Group Limited (VOC):
will sell its New Zealand business and Australian data centres, following a review to identify non-core assets for the telecommunications business to offload. The review of Vocus' assets, which was announced at its half year results, was undertaking at the telco looks to transform its business and put a tough 12 months of stalled integration behind it. Vocus will aim to sell its New Zealand business by the end of 2017-18, and is finalizing the appointment of advisors, it is expected to be either Goldman Sachs or Credit Suisse. "Looking at the market in NZ and the opportunity for our shareholders more broadly, we thought it was in our shareholders' interest to put that asset up for sale," Vocus chief executive Geoff Horth said. "I think we'll get a competitive process and a healthy return for our shareholders."
Rio Tinto Limited(RIO):
Rio Tinto Group will cover the legal costs of its former chief executive and chief financial officers after US authorities charged them with fraud, according to people familiar with the situation. Rio, also included in the fraud case, will pay the costs for former CEO Tom Albanese and ex-CFO Guy Elliott, according to the people, who asked not to be identified as the matter is private. It's standard practice for executives to be covered by the company's indemnification policy, one of the people said. The US Securities and Exchange Commission filed fraud charges against London-based Rio and the two executives last week claiming they inflated the value of Mozambique coal assets acquired in 2011. The unit was sold for $US50 million in 2014 following impairments of about $US2.9 billion in 2013 and $US470 million a year later. The SEC is seeking the return of "illgotten gains," civil penalties and to bar Albanese and Elliott from holding director positions.
Kogan.com Ltd(KGN):
Kogan.com is increasing inventory levels and boosting spending on marketing to ensure it grabs more than its fair share of spending this Christmas. According to a quarterly trading update, Kogan.com's inventories rose $12.8 million, or more than 30 per cent, since the end of June in anticipation of strong seasonal sales. Marketing and advertising costs rose to $3.9 million in the three months ending September 30 compared with $2.8 million in the June quarter. The increased investment took a toll on operating cashflows and cash holdings, which fell to $25.8 million at the end of September compared with $32 million at the end of June 2017.
(Source: AIMS)
As mentioned oh-so-briefly below, ANZ has reached a surprise settlement with ASIC thought to be more than $50 million in a surprise development on the first day of the bank bill swap rate trial. Lawyers acting for the bank requested for the hearing to be stood down for 48 hours on the basis that the settlement may create difficulties for the other parties. Justice Beach granted the adjournment soon after. ASIC launched the controversial action against ANZ, NAB and Westpac for allegedly rigging the BBSW, a key benchmark interest rate, to increase their profits. ANZ told the Federal Court this morning it has brokered a last-minute deal with the corporate regulator to settle the longrunning bank bill swap rate case. ANZ declined to say how much the deal was worth only that it had reached a confidential in principle agreement with the regulator. Last-minute talks resumed over the weekend and while NAB and Westpac are expected to fight on, multiple sources suggested that ANZ, has settled the case with a payment that is thought to be not much more than the $50 million the bank offered last year.
Beach Energy Ltd (BPT):
Beach Energy's acquisition of Origin Energy's conventional upstream oil & gas assets, Lattice Energy, provides a "transformational step-change in scale," for Beach, Goldman Sachs reckons. The research team, led by Mark Wiseman, says may of the assets are a logical and strategic fit, "given they are smaller-scale operated oil & gas facilities within the Australia/New Zealand region - areas in which Beach has experience, and some with common ownership." Wiseman notes there are clear opportunities for synergy capture in bringing these assets into Beach, particularly given Beach has already demonstrated its ability to harvest synergies, from the Drillsearch acquisition. Goldman estimates the transaction could be net asset value accretive to Beach by approximately between 1 per cent and 24 per cent. The transaction is subject to New Zealand government approval, which Beach has suggested may take until first quarter 2018.
Myer Holdings Ltd(MYR):
Myer's incoming and outgoing chairmen have pre-empted a strike by major shareholder Solomon Lew at the annual meeting by launching a spirited defense of the retailer's turnaround strategy and board composition. In letters accompanying the notice of meeting for the AGM on November 24, chairman-elect Garry Hounsell said he had confidence in the New Myer strategy and the capability and skills of the board and management to deliver it. "The evidence to date demonstrates that underlying earnings have been stabilized and our competitive position has been strengthened, but there is much more to do," said Mr Hounsell, who is set to succeed Paul McClintock as chairman if he is elected to the board at the AGM. "Second, you need the right skills on the board and in senior management not only to deliver the strategy but also to ensure it is capable of evolving to meet market conditions," he said.
National Australia Bank (NAB):
National Australia Bank is the next big bank likely to settle with the corporate regulator in its case for allegedly fixing the bank bill swap rate, following ANZ Banking Group's surprise estimated $50 million settlement on Monday. NAB was part of last-minute negotiations over the weekend which led to the ANZ deal which sources said would result in ANZ paying a fine of around $50 million. The settlement which was revealed by The Australian Financial Review this morning was confirmed in the Federal Court in Melbourne on Monday, the first day of the four-month trial with the judge agreeing to stand the cases down for 48 hours to finalize the ANZ deal and seek court approval for the settlement. "An in-principle agreement has been reached by the commission and the the ANZ Bank to settle the claims against that bank," ASIC's counsel John Karkar QC told the court in a hearing which took just three minutes. "In the circumstances, we request your honor that all matters be stood down for 48 hours to enable the ANZ documentation to be completed."
Telstra Corporation Ltd (TLS):
The competition regulator will not force Telstra and Optus to share their mobile networks with competitors, but has called for a number of measures to improve coverage for regional Australia. On Monday, the Australian Competition and Consumer Commission ruled it would not declare domestic mobile roaming, which would force all telcos to share their networks with competitors for a price determined by the regulator. Its draft decision also ruled not to declare roaming. "The ACCC's inquiry found that declaration would likely not lead to lower prices or better coverage or quality of services for regional Australians," ACCC Chairman Rod Sims said. However, the competition regulator said its consultation with regional customers and businesses found poor mobile coverage impacts communities on a social and economic level.
Vocus Group Limited (VOC):
will sell its New Zealand business and Australian data centres, following a review to identify non-core assets for the telecommunications business to offload. The review of Vocus' assets, which was announced at its half year results, was undertaking at the telco looks to transform its business and put a tough 12 months of stalled integration behind it. Vocus will aim to sell its New Zealand business by the end of 2017-18, and is finalizing the appointment of advisors, it is expected to be either Goldman Sachs or Credit Suisse. "Looking at the market in NZ and the opportunity for our shareholders more broadly, we thought it was in our shareholders' interest to put that asset up for sale," Vocus chief executive Geoff Horth said. "I think we'll get a competitive process and a healthy return for our shareholders."
Rio Tinto Limited(RIO):
Rio Tinto Group will cover the legal costs of its former chief executive and chief financial officers after US authorities charged them with fraud, according to people familiar with the situation. Rio, also included in the fraud case, will pay the costs for former CEO Tom Albanese and ex-CFO Guy Elliott, according to the people, who asked not to be identified as the matter is private. It's standard practice for executives to be covered by the company's indemnification policy, one of the people said. The US Securities and Exchange Commission filed fraud charges against London-based Rio and the two executives last week claiming they inflated the value of Mozambique coal assets acquired in 2011. The unit was sold for $US50 million in 2014 following impairments of about $US2.9 billion in 2013 and $US470 million a year later. The SEC is seeking the return of "illgotten gains," civil penalties and to bar Albanese and Elliott from holding director positions.
Kogan.com Ltd(KGN):
Kogan.com is increasing inventory levels and boosting spending on marketing to ensure it grabs more than its fair share of spending this Christmas. According to a quarterly trading update, Kogan.com's inventories rose $12.8 million, or more than 30 per cent, since the end of June in anticipation of strong seasonal sales. Marketing and advertising costs rose to $3.9 million in the three months ending September 30 compared with $2.8 million in the June quarter. The increased investment took a toll on operating cashflows and cash holdings, which fell to $25.8 million at the end of September compared with $32 million at the end of June 2017.
(Source: AIMS)
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