☕️ Climate collusion?

Good morning.

Texas and ten Republican-led states are taking on BlackRock, Vanguard and State Street in a federal antitrust lawsuit, accusing them of colluding to choke coal supply under the guise of pursuing climate goals.

The lawsuit escalates a years-long conservative assault on “woke capitalism,” where ESG and fiduciary duty clash over who really controls the levers of corporate power.

With major stakes in Peabody Energy and Arch Resources, the asset managers are being accused of orchestrating a coal output squeeze to inflate prices and profits.

Texas AG Ken Paxton – fresh from also suing a charity that serves the homeless in Austin this week – is leading the charge, calling it a "weaponisation of finance" against American energy.

BlackRock hit back, dismissing the claims as nonsensical and arguing the suit undermines Texas's business-friendly reputation.

🏆 LOI Subscriber #TBD

Market movers

Web Travel shares soared Wednesday on double-digit bookings growth and a $150 million buyback despite a 6.3% profit dip. WebBeds, its wholesale booking biz, led the charge with TTV up 25% to $2.59 billion, offsetting weaker European margins.

The buyback, kicking off next month, aims to ease dilution from $250 million in convertible notes. Shares jumped 13%, clawing back some of their 25% YTD slide.

The quick sync

• Seven, ABC, SBS and ACM join forces to demand AI firms like OpenAI and Google pay for using their content to train large language models, filing with the ACCC for collective bargaining approval. (Capital Brief)

• Vulcan Energy defied the lithium slump on tech deals, low costs and a €100m ($164m) German grant. (Capital Brief)

• Guardian Australia staff back a 12% pay rise over three years, ending strike threats amid soaring profits and revenue growth. (Capital Brief)

• PwC Australia to cut payments to retired partners by at least 25%. (AFR)

• Darwin Port’s Chinese owner scrambles to stave off forced sale. (AFR)

Trading floor

M&A

• Genesis Capital is set to gain majority control of Pacific Smiles. (AFR)

• IFM Investors increases its stake in Atlas Arteria by purchasing additional shares. (AFR)

• Pro Medicus signed a $24m deal with NYU Langone Health to provide medical imaging software. (Capital Brief)

• Fonterra seeks court clarification on its licensing agreement with Bega Cheese to facilitate the sale of its assets. (The Australian)

• Star Entertainment's lenders are growing impatient and are starting to sell their holdings. (AFR)

• Aged-care reforms spur private equity interest in sector mergers and acquisitions. (The Australian)

• Finder acquires cashback platform Grow My Money. (Startup Daily)

• Ramelius Resources may pursue a takeover of Spartan Resources if its own Rebecca-Roe development project proves less viable than expected. (The Australian)

• ISPT and ART are partnering to develop a $585m healthcare and life sciences hub in Sydney. (BNA)

• Australian media companies form an alliance to negotiate with AI firms for compensation for content usage. (Capital Brief)

Capital Markets

• Hostplus invests $125m in Australian deep tech. (Capital Brief)

• Macquarie Bank's London branch (MBL) was fined £13m for trader's fraudulent activity. (Capital Brief)

• Marina Radiology, a medical imaging business, is seeking a valuation of up to $170m as it explores a sale to private equity firms. (AFR)

• Morningstar ranks the Australian equity market as one of the least favorable for investment opportunities. (Capital Brief)

• Strong retail demand for HMC Capital's IPO boosts Greencross's IPO prospects. (The Australian)

• Airtasker raises $26.2m in new media capital. (BNA)

• GOP-led states sue BlackRock, Vanguard, and State Street over climate-driven coal output cuts and higher energy costs. (Capital Brief)

• Maurice Blackburn is investigating a potential class action lawsuit against Google over alleged anti-competitive adtech practices. (Capital Brief)

• NAB dodges court hearing by handing over documents in shareholder climate case, but further legal action looms. (Capital Brief)

• Goldman Sachs sees ‘significant’ hit to US from Trump’s Canada tariffs. (Bloomberg)

• JPMorgan turns positive on US stocks, sees S&P 500 advancing in 2025. (Bloomberg)

VC

• SpacetoCo, a space-sharing startup, raised $2m to expand into the UK market. (Capital Brief)

• FB10X invests in Heatseeker, a female-led startup. (Startup Daily)

People moves

• Police apply for apprehended violence order against former Seven producer wife of Barrenjoey banker Dyson Bowditch, Jessica Bowditch. (AFR)

The watercooler