☕️Bombed position

Good morning.

From darling to deadweight. Short sellers have gained the upper hand as shares in the anti-drone tech company DroneShield plummeted 75% from their peak in July last year. Capital Brief reports that positions against the small-cap defence firm have soared to 10.3% of its available stock, making it the 11th most shorted company on the entire ASX.

Growing conjecture over DroneShield’s technology, which may now be circumvented by improvised fibre-optic drones is weighing heavily on the firm. The now $530 million company is facing an undignified ejection from the MSCI Small Caps Index later this month off the back of its share price decline.

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Market movers

Investors hated Bendigo and Adelaide Bank’s results yesterday (shares tanked 15%), but they loathed Peter Dutton’s attack on insurers even more. Suncorp Group shares plunged 21.12% after the opposition leader threatened to break up  major insurers amid voter outrage over soaring premiums ahead of the federal election.

The quick sync

• AMP’s digital bank was dismissed as overambitious—now it’s live, on budget and challenging the big players in small business banking. (Capital Brief)

• With tougher merger laws looming, Tiger & Bear Partners warns deal timelines will blow out, leaving businesses stuck in limbo at the worst possible moment. (Capital Brief)

• AdvanCell’s $178m raise boosts investor confidence in Aussie biotech. (Capital Brief)

• Donald Trump’s tariff threats put Australia on notice, with US grievances over biosecurity, digital media and drug pricing shaping the battle over exemptions. (AFR)

• Xi’s rare meeting with Jack Ma and business elites signals Beijing’s shift from crackdown to courtship as China’s economy struggles. (Bloomberg)(Reuters)(Financial Times)(Capital Brief)

Trading floor

M&A

• Perpetual confirmed receiving takeover proposals from KKR but denied media-reported figures on net proceeds. (Capital Brief)

• Bruce Mathieson’s $550m bid for Star’s Gold Coast property was rejected amid financial struggles. (AFR)

• Insignia Financial sets month-end deadline for US$2b takeover offers from CC Capital, Bain Capital, and Brookfield. (Bloomberg)

• Charter Hall and Hostplus will fully acquire Hotel Property Investments after surpassing 90% ownership, following a $3.85-per-share takeover bid. (Capital Brief)

• Infratil and Future Fund acquire 12.5% stake in CDC Data Centres. (AFR)

• Anglo Platinum to pay $1.34b dividend and reduce stake post-demerger. (Capital Brief)

• Bain Capital halts bid for Fuji Soft, yielding to KKR's higher offer. (FT)

• Carbar bids $3.8m to acquire Carly, a car subscription rival. (SmartCompany)

• FBR's shares fall as CRH Ventures passes on a joint venture after a successful demo program. (BNA)

• Schwartz Family expands Sydney Brewery by acquiring Rocks Brewing and boosting production. (HM)

• BlackRock enters bidding for Zenith Energy, joining several other investors. (AFR)

• Foresight Solar launches $200m sale of Aussie solar farms to reduce debt. (AFR)

• Raizen, Brazil’s largest sugar producer, plans asset sales and investment cuts to stabilise its finances after soaring interest rates and a sharp quarterly loss sent its shares tumbling. (Bloomberg)

• Saudi Arabia's PIF is investing at least US$1b in Dazn, the sports streaming giant owned by Len Blavatnik, to expand its global sports footprint. (Bloomberg)

Capital Markets

• Arca raised $12.2m to expand its carbon removal tech at WA mines. (Capital Brief)

• Qualitas Real Estate raises $151m amid strong investor demand. (AFR)

• Bendigo and Adelaide Bank CEO Richard Fennell says the bank doesn’t need to mimic CBA, but its share price drop reflects investor concerns amid cost and margin pressures. (Capital Brief)

• US Energy Secretary Chris Wright encouraged Australia to supply uranium and consider nuclear power development. (Reuters)

• BlueScope benefits from 20% rise in US steel prices due to Trump tariffs. (AFR)

• Worley’s results next week will attract attention as Wood struggles with debt, leading to asset sales. (The Australian)

• Tesla's self-driving tech approval in China may be delayed due to escalating US-China trade tensions. (FT)

• OPEC+ may delay its April oil supply hike due to market fragility, with previous delays since June 2024 linked to weak demand and rising non-OPEC supply. (Capital Brief)

• Stake.com to leave the UK after controversy over social media videos. (AFR)

• Shein pressured to lower its valuation for a UK IPO amid declining investor interest. (Capital Brief)

• Aurizon explores splitting its businesses as earnings slide and stock drops. (AFR)

• The Reserve Bank of New Zealand is set to cut rates by 50bp to 3.75% on Wednesday, marking its third consecutive easing move aimed at reviving the economy. (Bloomberg)

• Vedanta's creditors meet Tuesday to vote on a demerger plan that will split the conglomerate into five distinct units as a key step in its debt restructuring. (Bloomberg)

• Oaktree’s $650m rescue plan offers Star a lifeline, but sceptical lenders and unsympathetic state governments pose major roadblocks raising doubts over whether the struggling casino giant can escape collapse. (AFR)

• The Fed’s Michelle Bowman calls for greater transparency and overhaul of bank oversight. (Capital Brief)

• The Fed’s Patrick Harker backs keeping rates unchanged, questioning inflation data and seeing no rush to cut despite long-term easing expectations. (Bloomberg)

• Elon Musk’s DOGE is pushing for access to the IRS’s highly sensitive taxpayer data, raising concerns about privacy and potential legal violations. (CNN)

VC

• University of Queensland spin-off Banksia Minerals Processing raises $1.05m to develop low-cost copper extraction technology. (Startup Daily)

People moves

• Peter Rossdeutscher AM is the new chair of IISA, bringing diverse industry expertise. (Capital Brief)

• Jorden Brown is Capital Group’s new head of client group in Australia. (Capital Brief)

• Ex-Star executive Gregory Hawkins settles with ASIC over compliance failures. (Capital Brief)

• EQT names Per Franzén CEO as Christian Sinding transitions to advisory chair. (Capital Brief)

• JPMorgan calls its US$175m Frank deal a "huge mistake"—now its buyer, Charlie Javice, is on trial for fraud, claiming the bank is just trying to save face. (FT)

• Argentina’s President Javier Milei endorsed a crypto coin called $LIBRA, sending its value soaring—then crashing—and fuelling an impeachment push and claims of a financial scandal. (NYT)(Reuters)

The watercooler