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Slater & Gordon Limited (SGH) said it has acquired Kenyons Lawyers for a combination of cash plus $800,000 in S&G shares. S&G said the Melbourne based firm generates over $5 million in fees per annum, half of which from its motor vehicle injury and workers compensation practices.

As part of the acquisition, S&G would also acquire a new area of work in Kenyons motor vehicle property damage practice.

The company said the agreement remain subject to the satisfactory completion of due diligence.

S&G managing director, Andrew Grech, said there would be some synergies resulting from combining both firm’s personal injury practices.

“The motor vehicle property damage practice will be an interesting addition to our portfolio of practice areas,” Mr Grech said.

“Our legal helpline already receives quite a few enquiries from potential clients in this area but up to now we’ve had to refer them to other law firms.”

S&G also announced that it plans to acquire Adams Leyland lawyers in regional New South Wales.

The company said the combination of the two acquisitions would add over $9 million in fees on an annual basis.

As at 1042 AEDT, Slater & Gordon shares were unchanged at $1.70.

Centro Retail Group (CER) said rental income growth for its Australian property portfolio had grown at 6.4% in the third quarter, building on the annual growth of 5.5% recorded at the end of June 2009. It was a different story in the US however, with rental income there decreasing 2.3% in the third quarter from the previous corresponding period.

Centro CEO Glenn Rufrano said the result showed the difference between the Australian and the US economy.

”CER’s Australian portfolio has maintained occupancy while improving NOI and rental growth due to the high-quality, non-discretionary nature of the assets,” Mr Rufrano said.

"The US portfolio is performing as we expected, particularly as the full impact of retailer bankruptcies from late 2008 and early 2009 is realised.”

The group said that the underlying net profit, non including one-off items, would be less than the previous year, as the strengthening Aussie dollar and interest rate movements took a chunk out of the earnings from the US properties.

”The current year net operating cash flow now expected to reduce by approximately 15% compared to the prior year net operating cash flow of $40 million,” the company said. 

At 1039 AEDT, Centro shares were down 1c to 16.5c.

RBS – Round Up – 121109

Danks Holdings Limited (DKS) said Carboxy Pty Ltd, the joint venture between Woolworths Limited (WOW) and Lowes Companies, Inc, has received acceptances from Danks shareholders totalling 96.2% of the ordinary issued shares in regards to yesterday’s takeover offer. Following the closure of the offer on November 19 Carboxy said it would move to compulsory acquisition of the outstanding shares it does not own.

Campbell Brothers Limited (CPB) announced that it has signed a share purchase agreement to acquire 100% of Ecowise Environmental Pty Limited for $51 million. Campbell Brothers said Ecowise has annual revenues of about $55 million, and operates laboratories and aligned environmental services in Australia, focusing on the water sector. Ecowise employs over 380 staff operating across 17 eastern seaboard laboratories and offices.  

Westfield Group (WDC) reported a 4.2% climb in retail sales in the third quarter to 30 September 2009 from the previous corresponding period, as growth slowed from the second quarter, which saw retail sales up 5.1%. Westfield chairman Frank Lowy reaffirmed the group's guidance for CY09, with operating earnings and distributions expected to be in the range of 94 cents to 97 cents per stapled security.

The property group reported earnings of just a tick over a dollar per stapled security last year.

Westfield said the centres in the US, which account for about 43% of the company’s assets, were stabilising, although in the third quarter retail sales in speciality stores was down 12.3% from the previous corresponding period.

To the end of the second quarter that figure stood at a decline of 10.8%.

However, occupancy rates in the US were at 92.1%, up from lows of 90.1% in March this year, while in the UK occupancy rates were at 97.8%.

In Australia, occupancy stands at virtually 100%.

Looking ahead to building more shopping centres the group said that it currently had four major developments underway, with about 50% of the $3.7 billion in development already spent.

No new projects were slated to be started for at least another six months, the company said.

At the close Wednesday, Westfield shares were trading at $12.59.

SP AusNet (SPN) said it was on target to meet full year distribution guidance of 8c per share after the company reported underlying NPAT growth of 10.5% in the first half to $135.4 million. The result came on the back of a 12.3% increase in total revenue to $713.7 million, which was attributed to higher transmission and gas revenues under regulated price path and higher unregulated revenues from Select Solutions.

The company also reported 5.8% and 4% rises in EBITDA and EBIT respectively.

The directors of SP AusNet declared an interim distribution of 4c per share, and maintained the fully franked dividend component at 32.2% of the total distribution.

SP AusNet said organic growth on the networks continues to be strong, with high levels of demand for energy infrastructure from new housing developments within the distribution network areas.

“New windfarm and gas fired generation connections on the transmission network will also ensure growth in SP AusNet’s asset base,” the company said.

“SP AusNet is on target to meet FY10 guidance of around an 18% increase in capital expenditure.”

The company said it would continue its focus on expanding and commercialising niche asset services, in particular metering and technical services.

At the close of trade yesterday, SP AusNet shares were trading at 87c.

The Dow finished higher for the sixth consecutive session to close at a fresh 13-month high. Financials led the rally as economic news out of Asia boosted investor confidence. 

The Dow Jones advanced 44.29 points, or 0.43%, to 10,291.26, the S&P 500 added 5.50 points, or 0.50%, to 1,098.51 and the NASDAQ put on 15.82 points, or 0.74%, to 2,166.90. 

Bank heavyweights Wells Fargo and Bank of America gained 2.5% each.

Goldman Sachs rose 1.9%, while Citigroup shed 0.5%.

American International Group dropped 2.2% amid speculation the company’s CEO Robert Benmosche is about to resign.

Modest gains among tech stocks sent the NASDAQ higher. Microsoft and IBM put on 0.4% and 0.2%.

Chipmaker Intel gained 1.7%.

Home improvement retailer Home Depot put on 1.8%, while rival Lowe’s rose 1.4% after the Australian Competition and Consumer Commission approved its proposal, alongside Australian JV partner Woolworths, to takeover Danks Holdings.

Merck & Co was among the few Dow components to lose ground. The pharmaceutical’s shares fell 1.2%.

Energy stocks tracked the price of crude higher. Exxon Mobil and Chevron added 0.4% and 0.2%, while ConocoPhillips bucked the trend shedding 0.8%.

US Steel climbed 3.2% on the back of higher prices.

NYMEX light crude oil for December delivery rose US23c to settle at US$79.28 a barrel.

Gold miner Newmont rallied 1.6% as the price of the precious metal advanced for the eighth successive session.

COMEX gold for December delivery rose US$1210 to settle at US$1,114.60 an ounce.

European Markets

Positive macro-economic figures out of China sent European markets to three-week highs. Financials and miners added the most points to the indices.

The UK benchmark FTSE 100 rose 36.20, or 0.69% to 5,266.75. The French CAC40 added 28.80 points, or 0.76% to 3,814.39, while the German DAX gained 55.15, or 0.98% to 5,668.35.

Credit Agricole rallied 5.6% after the French bank reported a smaller than expected drop in third quarter profit. Société Generale and BNP Paribas put on 2.9% and 1.6%.

Deutsche Bank and Commerzbank advanced 1.5% and 1.7% in Germany, while Lloyds was the best of the UK banks with a 4.7% gain.

Royal Bank of Scotland dropped 1.7%.

BHP Billiton led resource stocks higher. The world’s largest miner added 2.6%, while Aussie peer Rio Tinto rose 2.5%.

Xstrata, Antofagasta and Anglo American put on 2.7%, 2.1% and 1.4% respectively.

Base metals made modest gains on the LME overnight.

Energy majors BG Group and Royal Dutch Shell advanced 1.5% and 1.4%. Total added 0.6%.

BP bucked the trend having lost 1.7%.

J Sainsbury jumped 3.2% after the supermarket owner reported better than expected first half results.

DSG International surged 8.2% on the back of a broker upgrade for the consumer-electronics retailer.

Japanese Markets

The Nikkei eked out a modest gain Wednesday. The strengthening yen took the shine off exporters, while resource stocks released results that showed they were still a long way from their glory days.

The Nikkei 225 added 0.95, or 0.01% to 9,871.68.

The banks did well on speculation the central government would be lenient with capital requirements.

Mitsubishi UFJ Financial Group was up 1.4, while Japan’s number 3 banks, Sumitomo Mitsui Financial Group rising 1%.

Japan Airlines jumped nearly 5% after being thrown an economic lifeline from the government owned Development Bank of Japan in the form of a US$1.1 billion loan.

Nintendo and Sony shed 1.3% and 1% respectively.

Heavy industry stocks were mostly trading in positive territory, with Sumitomo Heavy Industries and Daikin Industries putting on 3.6% and 2.5%.

Retailer Aeon Co slumped 5% after saying it would raise more than US$1 billion to service debt payments.

Fast Retailing added 1.4%.

Metal producers, Dowa Holdings and Pacific Metals Co slumped 6% and 5.5% respectively on tumbling profits.

Hong Kong Markets

Hong Kong stocks rose to 15-month highs after an optimistic outlook from HSBC buoyed investors. Economic data revealed Chinese retail sales rose 16.2% in October, while industrial production increased 16.1% compared to a year earlier.

The Hang Seng climbed 359.05, or 1.61% to 22,627.21.

HSBC climbed 6.2% after it said third quarter profit was much higher than anticipated.

Bank of East Asia spiked 15% on speculation it may be taken over by Guoco Group. Guoco Group shares rose 1%.

Cathay Pacific Airways added 1.7% following reports of an increase to cargo volumes.  

Semiconductor Manufacturing International surged 73.7% on optimism the chipmaker’s incoming CEO will increase profitability.

Artini China Co climbed 30.2% after revealing its jewellery-making arm had been granted a licence to materials and trademarks of Disney characters.

Woolworths Limited (WOW) said the Australian Competition and Consumer Commission would not oppose the proposed acquisition of Danks Holdings Limited in a joint venture with US home improvement retailer Lowe’s. The Australian supermarket said the JV plans to develop a network of company-owned 'big box' home improvement stores as part of the joint venture’s entry into the hardware sector.

The ACCC originally had concerns out the effect of the proposed acquisition on competition between hardware retailers.

“In particular, the ACCC was concerned that the joint venture could discriminate against some of its wholesale customers, namely hardware retailers supplied by Danks, who would also be its retail competitors,” Woolworths said in a statement released Wednesday afternoon.

”As a result, the ACCC has accepted court enforceable undertakings from the joint venture in order to address these concerns.”

ACCC chairman Graeme Samuel said with the undertakings in place the ACCC considers the proposed acquisition unlikely to result in a substantial lessening of competition.

"The undertakings importantly impose requirements that will lower barriers that independent hardware stores supplied by Danks otherwise faced in switching to alternative suppliers,” Mr Samuel said.

At the close of trade Wednesday, Woolworths shares were trading at $28.14.