Australia
Resources company BHP Billiton made a takeover approach to arch-rival Rio Tinto valued at US$145 billion, excluding debt, but it was rejected as too low. BHP offered three shares for each Rio share. Subsequently, it lined up a US$70 billion financing package via Citi, raising speculation that it was looking to launch a hostile bid. See story on page 76.
Swiss-based mining firm Xstrata launched a recommended A$3.1 billion (US$2.7 billion) cash takeover bid for Australia's Jubilee Mines. Xstrata offered a 35% premium of A$23 for each share in the Perth-based Jubilee.
Palmary Enterprises made a A$1.03 billion offer for manganese miner Consolidated Minerals and has appealed to the Takeovers Panel over a rival bid from a Pallinghurst Resources consortium, claiming it breaches competition rules. Also, Palmary offered cash for all stock in Symbion Health that it doesn't own, valuing the firm at A$2.65 billion. The bid was rejected.
Australian agricultural chemicals-maker Nufarm recommended a cash takeover bid worth up to A$3 billion from a consortium comprising China National Chemical Corp. (ChemChina) and private equity groups Blackstone and Fox Paine. The deal was worth A$17.55 per share and included a proposed 30% dividend.
China
PetroChina became the world's largest listed company after launching China's biggest domestic initial public offering (IPO). It raised Rmb66.8 billion (US$8.9 billion) by selling four billion new A-shares in Shanghai at Rmb16.70 each. China International Capital Corp. and China Citic Securities were lead underwriters, along with UBS Securities. Its shares soared 163% on its November 5 debut, closing at Rmb43.96, giving PetroChina a market cap of US$1 trillion.
Premier Wen Jiabao attached four conditions to a "through-train" proposal to allow mainland citizens to invest directly in the Hong Kong stock market. He said a law needed to be passed to regulate outward fund flows. He also said that mainland investors needed to be better educated about risk.
Brokerage Citic Securities struck a landmark deal with US bank Bear Stearns that will see both invest US$1 billion into each other and set up an Asian investment banking joint-venture. The 50:50 venture will offer capital markets services across Asia.
Industrial and Commercial Bank of China announced plans to buy a 20% stake in South Africa's Standard Bank, the continent's largest bank by assets. The US$5.56 billion deal represents the largest foreign acquisition by a Chinese commercial bank.
General Motors announced plans to build a research centre in Shanghai for alternative energy vehicles. The US group said the centre would form part of a US$250 million investment in a new campus to include its Asian headquarters.
Hong Kong
The Hong Kong Monetary Authority injected HK$7.828 billion (US$1 billion) into the city's banking system on October 31 – the largest single intervention for four years – to ease upward pressure on the Hong Kong dollar peg. A buoyant stock market and feverish environment for IPOs were blamed. See story on page 16.