The market is down 24. The SFE Futures were down 24 this morning.
Wall St. closed down 72 overnight. Biggest drop in the market in a month. The Dow was down 7 at best and down 124 at worst. Consumer credit numbers came in weaker than expected and Ben Bernanke gave a speech in Dallas saying the US economy is not out of the woods just yet. Metals were down overnight, oil fell 96c to $85.63 and Gold continued its impressive run – up $17 to $1153. The Aussie dollar fell slightly to 92.70c compared to 92.75c yesterday morning.
In the news today…
- Peabody Energy has asked the Takeovers Panel to force Macarthur Coal (MCC) to postpone its shareholder meeting to allow more time for consideration of their takeover bid. MCC rejected Peabody’s cash offer of $14 a share and said it will continue with the Gloucester Coal acquisition. MCC says there is no basis to delay the shareholders meeting and they are not obliged to engage with Peabody. MCC up 9c to 1440c.
- Talk that the Newcrest bid for Lihir is a poison pill … in other words Newcrest is concerned about a bid themselves. NCM up 4% since announcing the bid. The Bid for Lihir is worth 410c and it closed yesterday at 389c. NCM up 17c today to 3544c and LGL up 9c to 398c.
- Mirvac Group (MGR) has successfully completed their $350m institutional placement. They have placed 250m staples securities at 140c. MGR down 6.5c to 141.5c.
- Hastings Diversified (HDF) up 5% to 127.5c after APA Group (APA) upped its stake in the company to 14.9%. APA paid $72.3m for 51.6m shares at 140c each.
- Healthscope (HSP) has signed an agreement to acquire land in Coburg, Melbourne to develop a new private hospital. HSP up 1c to 445c.
- Macmahon Holdings (MAH) up 8.9% yesterday on talk of a bid from Leighton Holdings (LEI owns 19.9%). MAH down 1.5c today to 77.5c.
- MetroCoal (MTE) up 31% to 27.5c after announcing a JV with China Coal Import & Export.
- Takeover target Arrow Energy (AOE) said their partnership with Apollo Gas (AZO) has confirmed the potential of a new gas resource in NSW. AOE has accepted Royal Dutch Shell and PetroChina’s takeover offer. AOE up 3c to 506c.
- Australian unemployment remained steady at 5.3% in March. Total employed increased by a seasonally-adjusted 19,600 in March. Economists expected a 30,000 employment increase.
- Stocks hitting a fresh yearly high today include: Iluka Resources (ILU), iiNet (IIN), Medusa Mining (MML).
The Dow Futures are down 19 at midday.
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