GRD Limited (ASX:GRD) said in an statement that it has entered into a binding agreement with UK-based AMEC plc (LON:AMEC) for the proposed acquisition by AMEC of all the shares in GRD. The company has recommended the A$160 million takeover offer from AMEC, saying the cash offer represents a good opportunity for GRD shareholders to secure attractive premium in an uncertain market environment.
Sydney, July 20, 2009 AEST (ABN Newswire) - Wall Street closed higher on Friday as IBM boosted its profit outlook for the year. This was its best week in four months with the major US indices gained 7%.
The Australian shares ended slightly lower after rise in early trade. The benchmark S&P/ASX 200 index was down 5.2 points, or 0.1 per cent, at 4000.8 while the broader All Ordinaries lost 5.1 points, or 0.1 per cent, at 3992.9 points. For the week, both indices surged more than 5 per cent, the strongest week in four months. The local market started in positive territory today led by the gains in Wall Street.
Key Economic Facts and Figures
The Australian Bureau of Statistics will release the CPI data on Wednesday. Economists forecast that the inflation has risen modestly in the June quarter following hikes in health insurance premiums plus higher rents and petrol prices. The CPI is likely to have risen by 0.5 per cent in the June quarter for an annual pace of 1.5 per cent.
KPMG survey showed that capital markets in Australia raised a record A$60 billion of new equity during the 2008-09 financial year, largely from rights issues and private placements. But KPMG research also found that fewer than 30 IPOs occurred during 2008-09 and less than A$300 million was raised, compared with billions in previous years.
The Australian Bureau of Statistics is to release producer price index data for the June quarter on Monday.
M&A News
GRD Limited (ASX:GRD) said in an statement that it has entered into a binding agreement with UK-based AMEC plc (LON:AMEC) for the proposed acquisition by AMEC of all the shares in GRD. The company has recommended the A$160 million takeover offer from AMEC, saying the cash offer represents a good opportunity for GRD shareholders to secure attractive premium in an uncertain market environment.
Royal Dutch Shell (LON:RDSA) has indicated that it plans to exercise its pre-emptive right to take up a share of the Tipton West assets, which were recently bought by Arrow Energy (ASX:AOE) from Beach Petroleum (ASX:BPT). Arrow Energy said Shell will pay it A$99 million to buy a further 12 per cent stake in the Tipton West project.
Important Corporate News
It is speculated that Virgin Blue (ASX:VBA) will be forced to seek additional capital either through an equity raising or by inviting new investors on to its register. But Virgin Blue said the board had not approved any such transaction. It is believed the company has held talks with one Middle East airline, possibly its new code-share partner Emirates.
Djerriwarrh Investments Ltd (ASX:DJW) has posted an annual loss for the year ended June 30 of A$14.1 million, 121% down from a profit of A$66.68 million in the previous year. This is due to impairment charges on its investments caused by the global financial crisis. The company's portfolio declined in value by 15.9 per cent over the financial year, compared to the 20.1 per cent fall in the general market.
Healthcare company CSL Limited (ASX:CSL) and Melbourne's Monash University have launched Federal Court action against Danish pharmaceutical company Novo Nordisk for allegedly breaching Australian patents for human growth hormone formulations.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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