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Macmahon Holdings Limited (MAH) requested its shares be placed in trading halt this morning. The engineering contractor said the reason for the request was that it is in final negotiations in respect of a contract. Macmahon requested the trading halt to remain in place until the earlier of the opening of trading this Friday, or when an announcement regarding the contract is released.

Charter Hall Group (CHC) said it raised approximately $50 million from the retail component of its equity raising. The group said $31 million was raised from retail investor participation and $19 million by the Gandel Group as sub-underwriters of the retail entitlement offer. Charter Hall said this was in addition to the institutional component, which raised approximately $171 million. The group said the shortfall in the number of securities applied for by retail securityholders was about 28.5 million shares, which would be issued to Gandel along with 31,865 shares in respect of ineligible foreign retail securityholders. Charter Hall said Gandel’s interest in the group is now 16.1%.

Orica Limited (ORI) said the Federal Court’s decision to uphold an amended assessment by the Australian Taxation Office is estimated to have a negative impact on the company of approximately $192 million. The explosives maker said as 50% of the amount owing on the amended assessment was previously paid, a further cash payment of approximately $126 million may be required by Orica with an after tax effect of approximately $92 million. Orica said has 21 days to appeal the decision.

Aurox Resources Limited (AXO) and Atlas Iron Limited (AGO) have agreed to merge via scheme implementation agreement (“SIA”) that would see Aurox shareholders receive one Atlas share for every three Aurox shares held. Aurox said the merger implies a price per Aurox share of $0.74 based on Atlas’ last closing price of $2.21, representing a premium of 173% on Aurox's last share price of 27c.

The junior iron ore developer said its board has unanimously recommended that, in the absence of a superior proposal, all Aurox security holders vote in favour of the scheme.

Aurox said the merger provides its shareholders the opportunity to participate in Atlas’ rapidly growing production profile, which will position the company as a globally significant iron ore producer.

The company said the merged company would have 187 million tonnes (mt) of DSO resources, exploration targets of 430 to 750mt at 57% to 60% Fe, two Pilbara magnetite projects and a 15,000 square kilometer Pilbara landholding, and a DSO production target of 26mtpa by 2014.

Managing Director of Aurox, Charles Schaus, said the high premium offered by Atlas is a great deal for Aurox shareholders.

”It reflects the high potential of the Balla Balla project, Aurox’s access to infrastructure and regionally significant water resource,” Mr Schaus said.

“The merged group’s port capacity of up to 33mtpa will allow the company to generate substantial synergies from production and development schedule optimization.”

He added that with iron ore prices expected to increase significantly in the coming year, the merger would give Aurox shareholders the opportunity to share in the benefits from immediate cashflows.

As part of the SIA, Atlas has agreed to extend an unsecured, interest-bearing loan of up $7.7million to Aurox in order to enable Aurox to redeem the outstanding convertible notes which are due to mature on 30 June 2010.

Aurox said the loan would be repayable on the earlier of four months from the date of draw down and 20 business days after termination of the SIA.

The company said the scheme would be subject to customary conditions for a public transaction including shareholder, court and regulatory approvals.

Aurox said the parties have agreed that unless the SIA is terminated, Aurox would not solicit any competing proposal or participate in any discussions or negotiations in relation to any competing bid.

As at 1017 AEDT Aurox and Atlas shares were halted at 27c and $2.21 respectively.

SEEK Limited (SEK) said it has increased its stake Malaysian based provider of employment websites JobStreet Corporation Berhad from 10.1% to 21.3% after paying a consideration of $23.5 million. The company said JobStreet has strong market positions in Malaysia, Singapore and the Philippines, as well as a significant shareholding in the leading Taiwanese online employment provider 104 Corporation.

Seek said it has received the cooperation of Jobstreet’s founders and management team who collectively are also substantial shareholders in Jobstreet.

As part of this transaction, Seek said these shareholders have sold it a 5.6% stake in Jobstreet.

CEO, Andrew Bassat, said the company was impressed with the strong results JobStreet has delivered since its initial acquisition.

“In a rapidly growing regional economy still in the early stages of online migration, we are confident of Jobstreet’s prospects and ability to increase market share,” Mr Bassat said.

“We also believe we can make a significant contribution to Jobstreet by providing strategic support and sharing expertise across the operations.”

At the close of trade Tuesday, Seek shares were trading at $7.55.

Southern Cross Media Group (SXL) announced that Southern Cross Media Australia Pty Limited (“SCM”) has entered into an agreement with a consortium of six banks for a refinancing facility of $375 million in place of its existing business level debt facility. The company said the facility is for a four year term and that once completed would position SCM with a conservative and sustainable level of debt with long dated maturity.

Southern Cross Media said SCM intends to reach financial close on the refinancing today, while it has agreed with Macquarie Bank to waive the American Consolidated Media LLC (“ACM”) financing condition to the Internalisation and Corporatisation.

”As a result, on financial close of the SCM refinancing, all conditions to the internalisation will be satisfied or waived, and completion of the Internalisation will occur immediately thereafter,” the company said.

”Corporatisation will then occur on 18 March 2010 in accordance with the timetable previously communicated.”

ACM breached certain covenants under its US$133.7m business level bank facility and has entered into a forbearance agreement with its lenders that expires on 29 March 2010.

Southern Cross said discussions have continued with ACM’s lenders during the forbearance period in relation to a possible restructuring of the ACM Facility that would permit the Internalisation and Corporatisation to occur.

Meanwhile, the company announced that Stephen Kelly has been appointed to replace Liam Buckley as chief financial officer upon internalisation.

As at 1054 AEDT, Southern Cross shares were up 6c to $2.11.

Directors' Interest Notices
09 March 2010

Symbol	Shareholder	+/-	Prior	Now
WOW	Leon L’Huillier		60,000	30,000

 

Substantial Shareholder Changes 
09 March 2010

Symbol	Shareholder	+/-	Prior	Now
AOE	National Australia Bank		-	5.583
CHC	Alphabridge Pty Ltd		12.21	14.65
CQO	Commonwealth Bank of Aust.		-	5.33
CQR	Commonwealth Bank of Aust.		-	8.84
CCL	Capital Group Companies, Inc.		8.1619	9.1659
DMP	Acorn Capital Limited		5.13	6.32
DOW	Capital Group Companies, Inc.		5.2575	-
FMG	Loucadia National Corporation		9.99	8.00
GNC	IOOF Holdings Limited		5.597	6.726
GUD	Perpetual Limited		5.47	-
ILU	Orbis Australia		-	5.13
MDT	Orbis Australia		15.04	16.21
MQG	AXA Asia Pacific Holdings Ltd		7.23	6.08
TEL	National Australia Bank		5.768	-

Gains were slim on Wall Street at the close Tuesday after an earlier rally withered away in the afternoon on the first year anniversary of the bear market low. Tech stocks had led the market higher by more than 50 points before the bears kicked in.

From this day last year, the Dow and S&P 500 have gained over 60%, while the NASDAQ has rallied more than 80%.

The Dow Jones gained 11.86 points, or 0.11%, to 10,564.38, the S&P's 500 added 1.95 points, or 0.17%, to 1,140.45 and the NASDAQ advanced 8.47 points, or 0.36%, to 2,340.68.

Citigroup climbed 7.3% on reports the US government is in talks with investment bankers about unloading its 27% stake in Citi in the next couple of months.

Insurer American International Group soared 12.6% for no obvious reason.

Heavyweight financials were otherwise mainly within about 1% either side of the gain line. Goldman Sachs rose 1.1%, while Morgan Stanley significantly underperformed to be down 1.8%.

Apple was the best of the tech majors, up 1.8%.  

Texas Instruments shed 2% despite the chipmaker announcing an improved first-quarter profit estimate Monday afternoon.

Boeing put on 0.8% as it became the only bidder remaining to build tanker planes for the U.S. Air Force after Northrop Grumman dropped out of the competition. The contract is believed to be worth as much as US$50 billion.

Northrop Grumman shares slid 0.3%.

Chevron dipped 0.2% after disclosing plans to cut 2,000 jobs this year in an effort to reduce costs.

Exxon Mobil added 0.4%.

NYMEX light crude oil for April delivery fell US38 cents to settle at US$81.49 a barrel.

COMEX gold for May delivery fell US$1.70 to settle at US$1,122.90 per ounce.

European Markets

European shares finished mixed as losses among banks and miners were countered by gains from defensive stocks.

The benchmark UK FTSE 100 slid 4.42, or 0.08% to 5,602.30, while the French CAC40 added 6.47, or 0.17% to 3,910.01. The German DAX gained 9.98, or 0.17% to 5,885.89.

In France, Societe Generale and Credit Agricole lost 1.5% and 1.4% as banks took the most points off the markets.

Standard Chartered and RBS were the worst of the major UK banks, down 2.8% and 1.2%.

Deutsche Bank advanced 0.4%.

Miners tracked metals prices lower. BHP Billiton, Rio Tinto and Anglo American were between 0.5% and 0.7% below the gain line.

Antofagasta rose 1.1% despite slightly missing consensus earnings forecast estimates.

EADS fell 2.8% after the French owner of planemaker Airbus posted a significant full-year loss, abandoned its dividend and said production difficulties would impact profits.

Sanofi-Aventis put on 0.8% after the French drugmaker and Merck agreed to combine their animal health care businesses. Merck dipped 0.2% in Germany.

Other pharmaceuticals made ground, including GlaxoSmithKline which added 1.6%. 

Weir Group surged 7.9% after the UK engineer exceeded full-year profit estimates and increased its outlook for this year.

Japanese Markets

Japan’s Nikkei weakened as investors locked in profits following the previous two sessions rally. Losses were limited by gains among some of the major exporters and earnings upgrades for certain stocks.  

The Nikkei 225 shed 18.27, or 0.17% to 10,567.65.

Jtekt Corp. dropped 3% following a broker downgrade due to Toyota’s recall issues. Toyota’s supplier of steering mechanisms stock rallied 5.9% over the previous three sessions.

Toyota shares slid 0.6%, while Nissan and Mazda added 0.7% and 0.4%.

Fujitsu fell 3.9% after once again revising its explanation for the resignation of its former president.

On the positive side, building materials supplier Nichias and cable maker Hi-Lex Corp. jumped 2.6% and 15% respectively after upgrading their full-year earnings forecasts.

Looking to the electronics companies Panasonic and Sony rose 2.1% and 1.1%, while Canon weakened 0.4%.

Hong Kong Markets

The Hang Seng eked out a small gain Tuesday. The property developers were in favour, while the resource stocks and banks weighed.

The Hang Seng rose 10.68, or 0.05% to 21,207.55.

In a wrap of the banks, Bank of China and ICBC lost 0.5% and 0.3% respectively.

HSBC, easily the most influential stock on the Hang Seng dipped 0.7%.

The insurers were stronger after China Life Insurance said its profit should climb 200%. Its shares added 3%.

Smaller rival Ping An Insurance was 2.9% stronger.

In property stocks, New World Development rallied 2.4% and Hang Lung Properties tacked on 1.9%. The sector was up on comments from a Chinese official that it would not take steps to cool the market.

Aluminum Corp of China and copper play Jiangxi Copper both slid 0.9%.

Looking at oil stocks, off-shore oil producer Cnooc eased 0.3%, while refiner PetroChina. 

Aussie shares closed higher Tuesday after being below the line for most of the morning and drifting lower again just after lunchtime. Heavyweight miners weighed on the market, however a sprinkle of stocks above the line across most sectors was enough to lead the market into positive territory for the eighth consecutive session. 

In the latest NAB business survey out today, business conditions have proven to be strong again, with business confidence at levels seen last November and before that, not since 2002.

Elsewhere, according the ANZ, job ads soared nearly 20% in February, a gain not seen in the 11 year history of the survey.

At the end of the day, the All Ords was up 9.7 to 4,829.3, while the ASX/200 added 12.2 to 4,820.1. Over 2.4 billion shares worth around $5.7 billion had changed hands.

The Energy sector, which gained 3.7% yesterday, was 0.4% higher as investors booked some profits.

Royal Dutch Shell takeover target Arrow Energy dipped 9c, or 1.8% to $5.02 following the previous sessions 47% rise.

Woodside eased 3c to $45.22, while Santos and Oil Search rallied 1.8% and 1.3%.

Oilfield engineering firm WorleyParsons was 2.8% stronger to $25.17.

Much of the coal sector was lower, with Centennial Coal off 2.5%.

Among the miners, BHP Billiton and Rio Tinto drifted lower despite their UK listings growing.

BHP was off 11c, 0.3% to $43.40, while Rio Tinto gave up 79c, or 1% to $76.15.

The broader Materials and Resources sector shed 0.6%.

Australia’s third-largest iron ore producer, Fortescue lost 3c, or 0.6% to $4.84 despite RBS raising its price target to $6.41.

Lihir Gold and OZ Minerals shed 1.7% each to $2.89 and $1.15 respectively. OZ Minerals entered into a joint venture with Azure Minerals on Azure’s San Eduardo property in Mexico.

Azure shares surged 22%.

NAB led the big four banks, with a gain of 54c, or 2.1% to $26.87. The others were more subdued, trading within 0.7% of the gain line.

The Banks and Financials sector was 0.6% stronger overall.

QBE was the best of the insurers, gaining 44c, or 2.1% to $21.10.

The Property Trusts sector was flat, with Westfield edging just 4c higher. The heavyweight was countered by losses of between 0.6% and 1.3% from Dexus, Mirvac and Stockland.

The Consumer Discretionary sector gained 0.7%. Pacific Brands climbed 4.7% for the retailers.

Elsewhere investors shrugged off news Billabong was facing a US$153 million lawsuit from an Indonesian affiliate. Its shares rose 2.3% to $10.90.

Gamer Centrebet shares were up 17c, or 10.4% to $1.80 after saying it was in discussions to be bought out.

Other gamers were more subdued with Aristocrat, Tatts and Crown gaining between 1.2% and 1.7%.

Media company Fairfax rose 2.5c, or 1.4% to $1.765.

The Consumer Staples sector was 0.4% stronger. Wesfarmers and Woolworths were up 0.6% and 0.7% at $32.71 and $28.12 respectively.

A gain of 1.6% from Coca-Cola was countered by a 0.9% fall in Foster’s shares.

Industrials were a broad mix of gainers and losers. The sector was 0.9% higher.

Virgin Blue extended its recent good run, which has seen its shares rise more than 33% in the last month. Today it tacked on another 5.7% to 74.5c. Rival Qantas shed 2c to $2.77.

Elsewhere Brambles rallied 4% to $7.50, while rail and port operator Asciano rose 1.9%.

Telstra was flat at $2.91 as its shares remain rooted around historic lows. The broader Telecommunications sector lost 0.1%.

Around the region, the Nikkei 225 lost 7.2 to 10,578.8, while the NZSE50 dipped 9.6 to 3,213.2. The Straits Times Index gained 2.1 to 2,836.7. The Hang Seng added 39.7 to 21,236.5.

Spot gold was trading at US$1,121.02 per ounce, while the Aussie was buying US$0.9095.

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Billabong says claim unlikely to impact group
Billabong International said it is the subject of a $53m civil claim requesting compensation in the Denpasar District Court in Indonesia by its former Indonesian licensee, CV Bali Balance, plus US$100m for 'unspecified' damages arising out of the termination. The surfwear retailer said it believes it is highly unlikely that the civil claim would have any material adverse effect on its business or operations outside Indonesia or on the revenue, profitability or financial condition of the Billabong Group as a whole.

By the close, Billabong shares were up 24c to $10.90.

Centrebet a takeover target
Centrebet International's shares are set to climb Tuesday morning after the company said it was facilitating discussions with parties interested in acquiring the Aussie gambling company. Centrebet didn’t elaborate on any details, including value it considered fair for the company, however said it would be business as usual for at least the next few months.

At the finish, Centrebet shares were up 17c to $1.80. 

GWA to acquire Brivis Climate Systems
GWA International said it has entered into an agreement with Carrier Air Conditioning Pty Ltd to acquire the business and assets of Brivis Climate Systems for $50 million. The supplier of building fixtures and fittings to households and commercial premises said the acquisition would see the creation of GWA Heating and Cooling, which is expected exceed $200 million per annum in revenue.

By the close, GWA shares were up 9c to $3.32.

Azure and OZ Minerals in Mexican JV
Azure Minerals and OZ Minerals have entered into a joint venture on Azure’s San Eduardo property, located in Sonora Mexico. Azure said the JV is a means of targeting major copper deposits, while OZ Minerals could earn a 70% interest in the project by sole funding US$13 million of exploration expenditure at the property.

At the end of the day, Azure shares were up 0.8c to 4.4c, while OZ Minerals shares were down 2c to $1.15.

Azure Minerals Limited (AZS) and OZ Minerals Limited (OZL) have entered into a joint venture on Azure’s San Eduardo property, located in Sonora Mexico. Azure said the JV is a means of targeting major copper deposits, while OZ Minerals could earn a 70% interest in the project by sole funding US$13 million of exploration expenditure at the property.

The junior explorer said the project is prospective for porphyry copper deposits with associated high-grade breccia and skarn copper, lead and zinc mineralisation.

The company said to earn an initial 51% participating interest in San Eduardo, OZ Minerals would be required to spend US$3 million over the next three years, with a minimum commitment of US$300,000 to be expended within the first year.

The company can earn an additional 19% participating interest in the project by spending a further US$10 million.

Azure’s executive chairman, Tony Rovira, welcomed the strong interest of OZ Minerals.

”To secure the involvement of OZ Minerals in this exploration project is a strong vote of confidence in Azure’s on-going program of regional exploration, target identification and project staking, confirming the effectiveness of our exploration team in Mexico,” Mr Rovira said.

”This joint venture will enable Azure to accelerate our exploration programs and develop our projects.”

The company said planning of the San Eduardo work program is at an advanced stage and fieldwork would commence shortly.

As at 1333 AEDT, Azure shares were up 0.8c to 4.4c, while OZ Minerals shares were down 1.5c to $1.155.

Local shares were little changed at lunch as the index strives to stretch gains into an eighth consecutive day. In some respects it was a mirror of yesterday’s market, as banks made modest gains, while the miners retreated.

In the latest NAB business survey out today, business conditions have proven to be strong again, with business confidence at levels seen last November and before that, not since 2002.

Elsewhere, according the ANZ, job ads soared nearly 20% in February, a gain not seen in the 11 year history of the survey.

At noon, the All Ords was up 3.0 to 4,822.6, while the ASX/200 added 5.1 to 4,813.0. Over 1 billion shares worth around $2.3 billion had changed hands.

The Energy sector, which gained 3.7% yesterday, was 0.4% higher as investors booked some profits.

Royal Dutch Shell takeover target Arrow Energy dipped 7c, or 1.4% following the previous sessions 47% rise.

Woodside eased 25c, or 0.6% to $45.00, while Origin firmed 22c, or 1.3% to $17.08.

Oilfield engineering firm WorleyParsons was 2.8% stronger to $25.18.

Much of the coal sector was lower, with Centennial Coal off 1.7%.

Among the miners, BHP Billiton and Rio Tinto drifted lower despite their UK listings growing.

BHP was off 18c, 0.4% to $43.33, while Rio Tinto gave up 56c, or 0.7% to $76.38.

The broader Materials and Resources sector shed 0.6%.

Australia’s third-largest iron ore producer, Fortescue lost 7c, or 1.4% to $4.80 despite RBS raising its price target to $6.41.

Macarthur Coal and OZ Minerals shed 2.3% and 1.7% respectively, while Alumina gave up 2.3%.

NAB led the big four banks, with a gain of 39c, or 1.5%. The others were more subdued, trading around the gain line.

The Banks and Financials sector was 0.3% stronger overall.

IAG shares climbed 7c, or 1.8% to $4.05. The insurer said it had received around 10,000 claims from wild weather in Victoria and Queensland, although it was still too early to estimate a cost.

QBE gained 26c, or 1.3% to $20.92.

The Property Trusts sector eased 0.2%, with heavyweight Westfield edging just 1c higher. It was unable to counter losses of between 0.7% and 1.3% from Dexus, Mirvac, Stockland and GPT Group.

The Consumer Discretionary sector gained 0.5%. Pacific Brands climbed more than 4% for the retailers.

Elsewhere investors shrugged off news Billabong was facing a US$153 million lawsuit from an Indonesian affiliate. Its shares rose 0.8%.

Gamer Centrebet shares were up 15.5c, or 9.5% to $1.785 after saying it was in discussions to be bought out.

Other gamers were more subdued with Aristocrat, Tatts and Crown gaining between 0.9% and 2.1%.

The Consumer Staples sector was 0.3% stronger. Wesfarmers and Woolworths were up 0.4% and 0.6% at $28.04 and $32.74 respectively.

A gain of 0.9% from Coca-Cola was countered by a 0.7% fall in Foster’s shares.

Industrials were a broad mix of gainers and losers. The sector was 0.5% higher.

Virgin Blue extended its recent good run, which has seen its shares rise more than 33% in the last month. Today it tacked on another 3.5% to 73c. Rival Qantas shed 7c to $2.74.

Elsewhere Brambles rallied 2.2%, while Seek put on 1.6%. Rail and port operator Asciano also rose 1.6%.

Telstra was flat at $2.91 as its shares remain rooted around historic lows. The broader Telecommunications sector lost 0.1%.

Around the region, the Nikkei 225 lost 5.1 to 10,580.8, while the NZSE50 dipped 11.9 to 3,210.9. The Straits Times Index gained 3.4 to 2,837.9.

Spot gold was trading at US$1,123.34 per ounce, while the Aussie was buying US$0.9091.

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Billabong says claim unlikely to impact group
Billabong International said it is the subject of a $53m civil claim requesting compensation in the Denpasar District Court in Indonesia by its former Indonesian licensee, CV Bali Balance, plus US$100m for 'unspecified' damages arising out of the termination. The surfwear retailer said it believes it is highly unlikely that the civil claim would have any material adverse effect on its business or operations outside Indonesia or on the revenue, profitability or financial condition of the Billabong Group as a whole.

At midday, Billabong shares were up 9c to $10.75.

Centrebet a takeover target
Centrebet International's shares are set to climb Tuesday morning after the company said it was facilitating discussions with parties interested in acquiring the Aussie gambling company. Centrebet didn’t elaborate on any details, including value it considered fair for the company, however said it would be business as usual for at least the next few months.

At lunch, Centrebet shares were up 15.5c to $1.785. 

GWA to acquire Brivis Climate Systems
GWA International said it has entered into an agreement with Carrier Air Conditioning Pty Ltd to acquire the business and assets of Brivis Climate Systems for $50 million. The supplier of building fixtures and fittings to households and commercial premises said the acquisition would see the creation of GWA Heating and Cooling, which is expected exceed $200 million per annum in revenue.

At noon, GWA shares were up 4c to $3.27.