Australian shares extended their losing streak to seven sessions on Tuesday, with sentiment hit by a renewed plunge in Centro Properties Group CENTRO PROP15 January,2008 15/01/2008 19:10 Sydney, Australia.Value
CNP.AX , 0.600, -0.260, -30.230%) and as financial stocks eased on ongoing U.S. economic worries.
Analysts said investors were nervous ahead of earnings reports later this week from big U.S. financial firms that have been hit by the fallout from the subprime mortgage crisis.
“Even though (problems have) been telegraphed, people are waiting to make sure there’s no further surprises there,” said Tony Russell, a senior equities adviser with ABN AMRO Morgans.
The benchmark S&P/ASX 200 index (.AXJO S&P/ASX 20015 January,2008
unofficially ended down 0.33 percent, or 20 points, at 5,960.0, retreating after early gains of over 1 percent in early trade which followed a strong performance on Wall Street.
Lead and zinc producer Zinifex Ltd insists its takeover offer for nickel hopeful Allegiance Mining NL remains compelling, despite the target announcing a 10 per cent increase in resources at its flagship Avebury project.
Allegiance and its largest shareholder, China’s Jinchuan Group Ltd, recently denounced Zinifex’s unsolicited bid of up to $744.93 million as not reflecting of the true value of the company.
In a statement, Allegiance chairman Tony Howland Rose said the resource increase demonstrated the “enormous potential value still to be unlocked” in and around Avebury.
However, Zinifex said it had already factored the upside in the resource into its bid.
“In formulating the valuation behind Zinifex’s offer, Zinifex assumed that sufficient resources would be discovered to increase the mine life beyond its current nine year life and expand the processing plant beyond its current 900,000 tonnes per annum design capacity,” Zinifex said in a statement.
Zinifex previously said it had sufficient financial clout to inject the required capital into the project, implying that Allegiance’s pockets were not deep enough for undertaking.
“… expansions and extensions will also require considerably more capital to be invested in exploration and development in the area,” the predator said in its statement.
“Zinifex’s offer is compelling for Allegiance shareholders, providing an immediate opportunity to realise a substantial all-cash premium for their investment.
“This is particularly so when shareholders take into consideration the current volatile and uncertain market conditions.”
Allegiance has advised shareholders to take no action and make no decision regarding Zinifex’s bid, which it described as “opportunistic”.
Zinifex’s offer is 90 cents per Allegiance share but will be increased to $1.00 per share if the suitor acquires more than 30 per cent of its target, or gains board approval.
The closing date for the two-tiered offer is February 8.
Allegiance is expected to release its target’s statement on Thursday.
Production at Avebury is scheduled to commence in the first quarter of 2008.
Allegiance’s shares closed 2.5 cents higher to $1.07 on Tuesday while Zinifex’s shares finished eight cents weaker to $10.67.
Govt to hire taxi rank security guards
The ACT Government will employ security guards at the Alinga Street taxi rank in Canberra’s city centre from this weekend, in response to cab drivers’ concerns about their safety. Acti…….
ABC- Tuesday January 15, 2008, 6:50 pm
Uranium industry will flourish if Labor lets it: analyst
A uranium industry analyst says the sector’s share market performance will only improve if the new Labor Government allows it to flourish. Warwick Grigor, from Far East Capital, has ju…….
ABC- Tuesday January 15, 2008, 6:42 pm
Nylex gives predator more time for info
Building, automotive and plastics products maker Nylex Ltd has agreed to give potential predator CHAMP Private Equity more time to submit a firm takeover proposal.The board of Nylex announce…….
AAP- Tuesday January 15, 2008, 6:29 pm
Franchisor BSR says Xmas trade excellent
National franchisor BSR Australia Ltd says it has had an “excellent” Christmas and that a continuing strong appetite for electronics should boost sales in 2008.The unlisted company behind th…….
AAP- Tuesday January 15, 2008, 5:48 pm
Public transport ‘smart card’ coming soon: Lucas
The Queensland Government says tunnels, busways and smart card tickets will revolutionise public transport in the south-east of the state. But the Opposition says the card is years beh…….
ABC- Tuesday January 15, 2008, 5:25 pm
UPDATE 2-Allegiance lifts nickel resource estimate
(Adds Zinifex reaction) By James Regan SYDNEY, Jan 15 (Reuters) – Allegiance Mining Ltd (ASX: AGM.ax) , fighting a hosti…….
Reuters Finance News, Australia- Tuesday January 15, 2008, 5:24 pm
Allegiance offer compelling: Zinifex
Lead and zinc producer Zinifex Ltd insists its takeover offer for nickel hopeful Allegiance Mining NL remains compelling, despite the target announcing a 10 per cent increase in resources at its fl…….
AAP- Tuesday January 15, 2008, 5:13 pm
Count Financial downgrades earnings
Investment management group Count Financial Ltd has downgraded its annual earnings guidance by 5.6 per cent amid ongoing turbulence in global investment markets, compounding a recent run on its sha…….
AAP- Tuesday January 15, 2008, 5:07 pm
Scotgold makes stellar market debut
Perth-based gold explorer Scotgold Resources Ltd made a stellar debut on the Australian stock exchange, as investors sought the safe haven of the precious metal amid shaky world markets.Scot…….
AAP- Tuesday January 15, 2008, 5:04 pm
Panasonic ‘EVOLTA’ Sets Guinness World Record For the Longest Lasting AA Alkaline Battery
Osaka, Japan, Jan 15, 2008 – (JCN Newswire) – Panasonic, the brand by which Matsushita Electric Industrial Co., Ltd. is known, today announced that its new ‘EVOLTA’ AA batteries have entered the Guinn…….
JCN Newswire- Tuesday January 15, 2008, 5:03 pm
Centro drags Aust market lower
The plummeting share price of struggling property group Centro has dragged down the Australian share market, despite a good lead from Wall Street and firmer commodity prices. The domes…….
ABC- Tuesday January 15, 2008, 5:02 pm
AUDIO: Copper Strike Limited (ASX:CSE) – Excellent Results From Jackson Drilling – Mr Terry Lees, Exploration Manager
Melbourne, Australia, Jan 15, 2008 – (ABN Newswire) – Copper Strike Limited (ASX: CSE) – Excellent Results from Jackson Drilling – Mr Terry Lees, Exploration Manager; Copper Strike Limited (ASX: CSE)…….
ABN Newswire- Tuesday January 15, 2008, 4:54 pm
Aussie stocks fall for 7th session; Centro dives
(Adds detail, comment) SYDNEY, Jan 15 (Reuters) – Australian shares extended their losing streak to seven sessions on Tuesday, with sentiment hit by a renewed plunge in Centro Properties G…….
Reuters Finance News, Australia- Tuesday January 15, 2008, 4:52 pm
Govt will ‘exercise restraint’ in first Budget: Swan
Federal Treasurer Wayne Swan says the Government will exercise restraint in drafting its first Budget, in an attempt to put downward pressure on inflation. Prime Minister Kevin Rudd an…….
ABC- Tuesday January 15, 2008, 4:39 pm
Rail workers reject pay offer
Adelaide rail workers have voted against TransAdelaide’s latest pay offer. Trains were out of service for more than four hours today while drivers held a stop work meeting. The work…….
ABC- Tuesday January 15, 2008, 4:32 pm
Also Inside Finance News:
- UPDATE 2-Allegiance lifts nickel resource estimate
Tue 5:24PM Reuters Finance Australia
- Aussie stocks fall for 7th session; Centro dives
Tue 4:52PM Reuters Finance Australia
- Australia state committed to energy privatisation