Telstra still needs assurances from the ACCC on what it can charge competitors for access to its copper network and without that pricing certainty it is unlikely to take any deal to its shareholders. The other thing that will keep NBN watchers on the edge of their seat today is the release of the review by the Australian Competition and Consumer Commission (ACCC) on fixed-line pricing and a report on the number of exchanges that should be built into the network. Telstra had previously said that it wanted to announce a definitive agreement with NBN Co before 2010 was over with the deadline a crucial milestone in its schedule to put the deal before its shareholders by the middle of next year. So we should all hopefully get an idea of just how viable and profitable the entire exercise is going to be and just how much of a redesign the government has forced upon the company building the network, NBN Co, in an effort to fend off monopoly concerns. The full business plan behind the National Broadband Network (NBN) is expected to finally see the light of day today and after giving a sneak peek into the plan in November, which many said was short on facts and figures, the Gillard government won’t have anywhere to hide today. There is talk that the revisions to the NBN business plan will be a win for the major telcos the one thing that looks certain at the moment is that the $11 billion deal between Telstra Corporation and the government is probably not going to be finalised before the end of the year.
Then there are the interested foreign parties such as the Singapore government owned GIC Real Estate and US private equity players NRDC and AREA which have teamed up with Lend Lease. Centro’s $13 billion fire-sale has reportedly drawn indicative bids from all comers with the property group and its advisers – JP Morgan, UBS and Moelis & Company – set to run their eyes over more than 20 offers. The unlisted players participating in the Centro carve up include Colonial First State, AMP Capital and the Queensland Investment Corporation. The list of suitors includes all of the major listed Australian players with Westfield, Lend Lease, Stockland, GPT and Charter Hall all in the mix. Given how lengthy this process is expected to be an outcome is probably not expected until the second quarter of 2011. So the chips are on the table and Centro and its advisors now face the challenge of sifting through the offers and find the best fit. Meanwhile, there is also some speculation that Israel-based Gazit Globe, which has previously expressed its interest is acquiring Australian malls, may also be in the hunt for Centro and The Australian Financial Review reports that it may have teamed up with US firms Equity One and Apollo.
Elsewhere, it looks like Telstra’s directories arm Sensis sealed a multi-billion deal with Google in May this year to deliver its base maps of Australia and New Zealand’s road networks and images to the Internet giant. The bookmaker, which has lobbed a $377 million bid for 888, said that at this point there was no certainty that the talks will lead anywhere. The deal comes days after Russian giant ARMZ Uranium Holding lobbed a $1.16 billion cash bid for Perth-based miner Mantra Resources and has some analysts saying that the race to acquire world-class uranium assets may be back in earnest. According to the Herald Sun, the deal was signed on an ongoing basis, meaning Google can access data updates when required. However, one of its largest shareholders, Southeastern Asset Management, has struck telling blow in the battle after agreeing to tender some of its shares to ACS, bringing it within a whisker of reaching the 30 per cent stake it needs to gain control of Hochtief. Meanwhile, Treasurer Wayne Swan has approved China’s Minmetals Resources’ acquisition of Album Resources Private Ltd and, consequently, Album’s Australian mining assets, which include those acquired in 2009 by China Minmetals Non-ferrous Metals (CMN) from the then financially troubled OZ Minerals. Now to some action in the uranium sector with Paladin Energy agreeing to buy the uranium assets of Canada’s Fronteer Gold in an all-stock deal valued at about $258.7 million. The European Commission is due to give its initial verdict on the 8.2 billion deal on December 22. Meanwhile, the knotty decision of letting Rupert Murdoch’s News Corp getting its hands on British Sky Brodcasting (BskyB) may have to be made by UK regulators with the Financial Times saying that European regulators are expected to leave the decision to their UK counterparts. Under the terms, Fronteer Gold will receive 52.1 million Paladin shares listed on the Toronto Stock Exchange for the uranium assets owned by its unit Aurora Energy Resources. In overseas news, UK-based gambling firm Ladbrokes is in takeover talks with online gaming company 888 Holdings. Finally, Leighton Holdings’ German shareholder Hochtief has rejected the sweetened offer from Spanish suitor ACS.
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