☕️ Bourse f--k up

Good morning.

A former ASX insider claims to have personally warned then-RBA assistant governor Michelle Bullock about the ASX's failing CHESS replacement project nearly a year before the exchange admitted to its tech woes, Capital Brief’s Jack Derwin reports.

ASIC’s lawsuit against the ASX sparked a backlash on Wednesday, with allegations the bourse not only failed to inform the market about its bungled CHESS upgrade but knowingly misled it. The exchange, meant to be a gold standard partner for regulators, is now in the midst of “an extraordinary governance f—k up,” as a former market official puts it.

But Philip Galvin's tip-off in 2021 also casts a shadow over the regulator’s oversight, suggesting the problems were more widely known than they have implied. While some argue Damian Roche’s as ASX chairman is now untenable, others are questioning who else dropped the ball.

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Market movers

Pro Medicus shares jumped over 7% after the medical software group posted better than expected FY24 results, with profits up 36.5% to $82.8 million.

Despite a slip in European earnings, booming North American revenue and a hiked final dividend of 22 cents per share were key drivers behind the stock surge, adding to a 90% gain over the past year.

The quick sync

• Nine months after the National Reconstruction Fund launched, Labor's $15b manufacturing fund is criticised for slow progress and lack of transparency. (Capital Brief)

• Mortgage competition is beginning to 'ratchet up' again, says CBA's CEO Matt Comyn. (Capital Brief)

• Labor’s flagship Future Made in Australia (FMIA) plan is in jeopardy just months before the election, with several crossbenchers raising concerns that may prove irreconcilable. (Capital Brief)

• New Zealand’s central bank has eased the level of monetary policy restraint by reducing its official cash rate (OCR) by 25 basis points to 5.25%. (Capital Brief)

• NAB, the banker to the collapsed ready-to-drink vodka maker Billson’s Beverages, owed $12m, brought in McGrathNicol for a “review” of the business almost four months before it went bust. (AFR)

Trading floor

M&A

• Fortitude Investment Partners is approaching an exit for Active Adventures after its second acquisition, purchasing US-based Discovery Bicycle Tours for $3m. (AFR)

• Healius' chances of attracting strong bids for its Lumus Imaging business have diminished as IFM Investors exits the race, leaving three bidders remaining. (AFR)

• Mars is set to acquire Pringles-maker Kellanova for nearly $36bn, expanding its snacking portfolio with popular brands like Pringles, Pop-Tarts, and Cheez-It. (Capital Brief)

• Queensland Investment Corporation is eyeing iseek, a data center operator for sale through Amber Infrastructure. (The Australian)

• AGL Energy is making a strategic move to acquire Firm Power, a 6GW battery energy storage system company. (AFR)

• Mark Arena acquires a majority stake in the Perth Wildcats for $21m. (BNA)

• Sims is exploring a break-up, with shareholders favoring the sale of its North American unit following positive market reactions to recent divestments. (The Australian)

• Forbidden Foods is acquiring Steve Smith's Oat Milk Goodness for $3.4m, aiming to become a "capital light brand manager" in the FMCG sector. (BNA)

Capital Markets

• Seven West Media's earnings fell 33% to $187m, with more cost-cutting planned due to an advertising slump. (Capital Brief)

• South32 faces pressure for transformational change as shareholders grow frustrated with its lack of growth since its 2015 spin-off from BHP. (The Australian)

• BWP Trust boosted FY24 profit and portfolio value with key acquisitions, including Southport Showrooms, Broadmeadows Homemaker Centre, and Newmark Property REIT. (Capital Brief)

• Morse Micro, after a $170m Series B, is focused on revenue growth from its new WiFi chip, with founder Michael De Nil eyeing an eventual IPO. (Capital Brief)

VC

• WNT Ventures, is raising between $NZ35m and $NZ60m for its fourth fund to enhance its presence in New Zealand's deep tech scene. (AFR)

People moves

• Fletcher Building reduced the earnings impact from cement supply issues and appointed Will Wright as CFO and Haydn Wong as group general counsel. (Capital Brief)

The watercooler