☕️ ASX insider

Good morning.

Insider trading allegations have surfaced at the ASX, with Capital Brief’s Jack Derwin revealing the corporate regulator was tipped off about informed bourse employees offloading stock well before the market was told the CHESS technology upgrade was in serious trouble.

Despite the gravity of the claims, ASIC put the investigation in the too-hard basket, opting not to pursue a formal inquiry due to the difficulties in building a watertight case.

While the insider trading probe has been quietly shelved, the ASX is already facing legal action from the regulator for allegedly misleading the market about the upgrade’s progress. On that front alone, UBS estimates the exchange could easily cop a fine of up to $50 million.

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Market movers

a2 Milk shares plunged nearly 19% on Monday, to their lowest since April, after it surprised investors with a downgrade to its revenue growth forecast amid a bleak outlook.

The infant formula maker, which has been battling supply chain woes and higher freight costs, now expects revenue to grow at just half the pace originally anticipated.

The quick sync

• The Law Council of Australia hit out at draft merger law reforms to expand the powers of the ACCC, saying they risk creating a complicated, rigid, time-consuming system. (Capital Brief)

• Gavin Vallely, HFW’s managing partner for Australia is trying to double revenue by 2026 and wants to create a place people actually want to work. (Capital Brief)

• ‘Peak ESG' concerns heat up as investors scrutinise sustainability claims and backflips this earnings season. (Capital Brief)Caravan and chocolate makers, software developers, gas companies and native titleholders are among a slew of interest groups asking for billions as part of the Albanese government’s Future Made in Australia plan. (AFR)

• Suncorp says general insurance premiums are set to rise this financial year by mid-to-high single-digit amounts, while the reinsurance market stabilises. (AFR)(Capital Brief)

Trading floor

M&A

• AMD buys server maker ZT Systems for $7.29bn to boost AI chip and hardware offerings. (Capital Brief)

• Brookfield sells Aveo's South Australian retirement homes to Uniting Church for $122m ahead of a broader business auction. (AFR)

• Booktopia has been sold to digiDirect for much less than its former $400m valuation. (AFR)

• Under an agreement between Labor and the Coalition, the CFMEU will be barred from making political donations while under administration. (Capital Brief)

• Negotiations for Stonepeak to acquire a 40% stake in Jemena are becoming less likely, though not officially canceled. (The Australian)

• James Hardie is in the early stages of a potential U.S. acquisition as part of its plan to triple regional earnings. (AFR)

• Autosports Group is buying Melbourne's Stillwell Motor Group, which sells BMW and Ducati, for $55m to expand its luxury car presence. (BNA)

• Deal makers are confident that Chemist Warehouse’s backdoor listing into Sigma will pass the ACCC review without major changes. (The Australian)

• Commonwealth Bank is preparing to sell its ultra-high-net-worth division, Commonwealth Private Advice, amid recent layoffs in the private wealth department. (AFR)

• Bidders are preparing for their offers on Anglo American’s Australian metallurgical coal assets by September 9, with uncertainty about Adani Group’s participation. (The Australian)

Capital Markets

• Anglo American has enlisted Standard Chartered to explore options for its 38,000-tonnes-a-year nickel business as part of a broader divestment strategy, amid a global drop in nickel prices. (AFR)

• Virgin Australia's planned float has been delayed by about a year due to recent asset discussions with Rex. (The Australian)

VC

• LoveHeart AI has secured $2.3m in Seed funding for its advanced educational aid, backed by OIF Ventures and Skalata. (Startup Daily)

People moves

• Frontier Energy has appointed former Premier Mark McGowan as non-executive chairman for its planned 120MW solar project with battery storage. (BNA)

• Jessy Wu, former OG partner at AfterWork Ventures, has left the VC firm to start her own media and communications agency, Encour. (Startup Daily)

• Andrew Barnes, the founding CEO of $3bn Queensland tech start-up Go1, is stepping down and transferring sole control to co-founder Chris Eigeland. (AFR)

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The watercooler