Pharmaceuticals manufacturer Sigma has said it wants South African group Aspen Pharmacare to improve on its $648 million bid.
However, the company has said it will not give in regarding any of its demands, even though analysts point out it is carrying a significant load of debt.
“Aspen has also been advised that such discussions should not be interpreted as a willingness on the part of the board to recommend to Sigma shareholders an offer of [55 cents] per share,” Sigma general counsel Sue Morgan-Dethick said in a statement.
The company’s shares have fallen 3.3% to 45.5 – well below Aspen’s asking price.
New ABS figures show owner occupied housing commitments have dropped by a seasonally adjusted 0.3%. Personal finance commitments increased by 0.1%, with revolving commitments up 0.4% and fixed lending down 0.2%.
In commercial finance, total commitments dropped 1.1% while fixed commitments were up 5.8%, along with revolving credit commitments up 13.1%.
Two Sydney hotels owned by industry veteran Victor Seeto have reportedly collapsed.
As reported by the Sydney Morning Herald, BankWest has reportedly foreclosed on the Ancient Briton Pub in Glebe, in Sydney, and on the Dog and Parrot Tavern in Robina on the Gold Coast. Receivers PPB have reportedly taken control of Seeto’s company, Hotel Ninety-Eight.
According to information provided by the Australian Securities and Investment Commission, a receiver was appointed to Hotel Ninety-Eight last Friday, 9 July, the company managing both hotels. Seeto owns 70% of the group.
PPB was contacted by SmartCompany for comment this morning, but no reply was received before publication.
The Ancient Briton has faced financial troubles before. In 2008, the company operating staff and suppliers at the hotel fell into administration, owing creditors $1.4 million.
Alcoa, the world’s largest aluminium manufacturer, recorded a higher-than-expected quarterly profit yesterday raising its shares 3% in trading.
Chairman and chief executive Klaus Kleinfeld said on a conference the call that demand for the company’s product should be sustained over the next decade.
“You see robust consumption growth in places like China, Brazil, India, modest increases in North America and Europe,” he said.
“There’s a lot of very positive indications there of a real recovery in almost all of these markets. But I believe that the biggest risk is still the volatility that could potentially come from financial markets.”
The company said net earnings were $US136 million, compared with a loss of $US454 million for the previous corresponding quarter. Revenue also increased by 22% to $US5.2 billion.
Government may introduce new climate change initiatives
The Government may be preparing to unveil a new set of climate change initiatives, including restrictions on coal stations and new energy efficiency targets, the Sydney Morning Herald has reported.
It is understood the changes will be announced in a cabinet meeting today. It is understood the changes are being discussed order to prepare for the upcoming election, which is set to be called within days.
Hardware retail giant Bunning’s has admitted in the Melbourne Magistrates Court it sold a noxious weed in several of its Victorian stores, along with several other horticulture suppliers.
The company was fined $15,000 without conviction. The offenses took place between January and May 2008, with the agriculture department also awarded some costs. Minister Joe Helper said in a statement the prosecutions serve as a warning to the industry.
“While the vast bulk of the industry do a fantastic job and is aware of its responsibilities, this prosecution is a timely reminder of the risks associated with the importation and distribution of non-native horticultural plants,” Mr Helper said.
The Australian share market has opened flat despite a slight rise on Wall Street overnight, as commodities markets recorded a relatively soft performance.
The benchmark S&P/ASX200 index was up five points or 0.14% to 4421.9 at 11.35 AEST, while the Australian dollar opened higher to US87c.
ANZ shares gained 0.8% to $22.62, while Commonwealth Bank shares gained 1.1% to $50.09. NAB rose 1.7% to $24.66 as Westpac climbed 0.9% to $22.53.
Rates may rise outside of RBA cycle, report claims
A new report from Macquarie Equities Research reveals the country’s major banks may increase interest rates outside of the RBA cycles.
It is understood the major banks are suffering from tight profit margins, and are searching for new products to entice new customers, such as the transaction accounts offered by ANZ and Commonwealth Bank.
Analyst Michael Wiblin told The Australian that due to the sensitive issue of mortgage repricing during the election, banks may wait to raise rates. He tips NAB to move first, with a relatively low variable rate of just 7.24%.
Earthmoving equipment group Emeco has said its annual net profit will be towards the lower end of previous guidance, announcing a profit estimate of between $40-41 million. Full-year results will be released on August 25.
“FY10 has been a challenging year for many companies in the mining services sector as we emerged from a severe downturn,” Emeco chief executive Keith Gordon said in a statement.
“However, the delivery of this operating result, which is in line with guidance, provides a solid foundation to move forward into FY11 and beyond.”
Overseas, American investors welcomed news from Greece regarding a dramatic cut in its budget deficit, but shares still remained flat due to the anticipation of the earnings reporting season. The Dow Jones Industrial Average was up 18.24 points or 0.18% to 10,216.27.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
