Macbank Eyes London Broker

Sydney Morning Herald

Wednesday April 19, 2006

Edited by Colin Kruger xchange@smh.com.au

Yo bro, doze demon dudes of the holey dollar are hip-hopping to shop in England.

WHILE Macquarie Bank's $3.6 billion bid for the London Stock Exchange collapsed in a heap, it hasn't stopped the Millionaires Factory from seeking to beef up its presence in the Old Dart, specifically, in the City.

The latest rumour doing the rounds is that Macquarie is running the rule over UK stockbroker Williams de Broe, which has offices in London, Birmingham, Leeds, Edinburgh and Geneva.

Macquarie has been linked to several UK brokers, including Collin Stewart and Bridgewell, but analysts say the Williams de Broe rumour is particularly believable.

For starters, it is owned by Dutch investment house ING, which has already sold Macquarie its Asian equities business and the bank has not been shy in letting the market know how happy it is with that acquisition.

Macquarie is keen to control its distribution in the markets in which it is doing business.

That way, when it lists a fund or advises a corporate client, it doesn't have to pay commission to another broking house.

The bank announced earlier this month that it was setting up a joint venture with South African broker First South.

A report in the British Daily Telegraph said Williams de Broe would fetch between #10 million and #30 million ($24 million-$72 million).

Keep this one on ...

Digital media company IceTV said yesterday it was seeking to raise $4 million ahead of a stockmarket listing.

The initial share price is 50c and interested buyers must pick up a minimum of 4,000 shares.

IceTV is the biggest supplier of electronic program guide software and content for digital video recorders sold in Australia.

It offers a similar service to the electronic guide on Foxtel Digital for free-to-air television and has been referred to as the local version of $US741 million ($1 billion) US company TiVo, which allows viewers to find and record multiple TV shows, "control" live television and has more than 4 million subscribers.

Vale Volante

Commander boss Adrian Coote had good reason to indulge in a drink yesterday after the voice and data communications company all but completed its takeover of tech stock Volante.

Almost four months since it launched the bid, the former Telstra subsidiary secured the 90 per cent of Volante it needs to trigger compulsory acquisition of the remaining shares.

Commander, in which investment bank Babcock & Brown holds a 6.8 per cent stake, last month lifted its offer from $1.01 a share to $1.15, which was subsequently recommended by Volante's board.

The acquisition is Commander's fourth since it bought IT services company Centari in July of 2002.

The takeover will give Commander access to another market segment, as Volante's data hardware and managed services businesses has larger clients.

Anzon pitch

Bass Strait oil producer Anzon Australia has launched its pitch to shareholders in takeover target Nexus Energy, saying its offer gives them a chance to be part of a profitable and much less risky company.

Anzon sent out its bidder's statement to the target's shareholders, detailing its offer of one Anzon share for every two Nexus shares, worth about $200 million at current prices.

Anzon chief exec Steve Koroknay said Nexus faced a complex and costly well drilling program in its Longtom prospect and so far had 100 per cent of the risk.

Engineers happy

Engineering services, train builder and maintenance concern United Group helped underpin the rally in its share price yesterday by announcing another $730 million in contracts.

Its arch enemy, Downer EDI, announced it had secured $360 million in new telecommunications contracts from Telstra and Foxtel.

The next major boost in Downer and United's share price is expected to come from the NSW Government's much delayed $1.5-plus billion tender to replace one-third of CityRail's fleet of 1500 rail cars by the end of the decade.

Given recent criticism levelled at the Iemma Government it is a good bet an announcement will be made soon.

Especially with a state election around the corner.

There is also speculation CityRail has shelved plans for the contract to include single-deck carriages.

If so, this will be a major boost to both companies.

It is understood that United and Downer are the only two to have lodged designs for double-decker carriages.

And given the size of the tender, there is speculation it will be split between both parties.

© 2006 Sydney Morning Herald

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