☕️Clinical Short

Good morning.

Short sellers are building positions against Nanosonics as the $1.3 billion medical device company faces growing competition at home, budgetary headwinds in the US and uncertainty around how its hotly anticipated new endoscope-disinfecting device will sell in market, Capital Brief reports.

Nanosonics shares are up 44% over the past year, against a near 10% rise for the broader market. But the device maker has become the 25th most shorted stock on the ASX, fresh ASIC data shows, with hedge funds almost doubling their short positions in the last nine weeks to control nearly 19 million shares or 6.25% of the company.

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Market movers

Shares in Mineral Resources sank over 6% Friday, leading a sharp retreat in miners after Citi downgraded lithium price forecasts.

The quick sync

• TechnologyOne’s hot run has fundies hooked and the ASX buzzing. Now it must prove it’s more than just a growth story priced to perfection. (Capital Brief)

• Australia’s new privacy tort may pose little threat to media, but it opens the door to high-value class actions that litigation funders are eyeing as legally novel, emotionally charged test cases. (Capital Brief)

• As Anthony Wood and Jordan Hardinge write, what’s holding back Australia's productivity may be its outdated and confusing award system, not high wages. (Capital Brief)

• Trump’s strikes on Iran reignite oil price fears and could upend the global economic outlook. (Capital Brief)

Trading floor

M&A

• Edify Energy lines up $3b debt facility as global investors bid for the renewable developer. (AFR)

• Bain Capital may bid for all of Perpetual to secure its Corporate Trust unit and bypass past tax issues. (The Australian)

• Apple considers buying Perplexity AI to boost its AI strength. (AFR)

• ADNOC resurfaces with $36.4b bid for Santos after two failed attempts. (AFR)

• Real Pet Food is seeking global buyers like Mars and Colgate for its upcoming sale, excluding private equity interest for now. (The Australian)

• Mr Yum claims monthly profits after $82m loss and merger with me&u. (AFR)

• Scape nears $3b+ deal to buy Aveo, with APG and Korean funds likely to back the transaction. (The Australian)

• Google ends deals with 24 small publishers early, challenging Labor’s media code stance. (AFR)

• AMP may break up its business, separating or selling its bank, and is eyeing a potential swap deal with Westpac’s BT Panorama. (The Australian)

Capital Markets

• Tesla debuts robotaxis in Austin, with no driver but a safety monitor onboard.

  (Capital Brief)

• AIS Limited is targeting a $500m ASX IPO with backing from Henslow and Morgans. (AFR)

• TechOne’s soaring stock makes it a $13b star, but now it must meet high investor expectations. (Capital Brief)

• Bain Capital is set for a $15.9m payday as Virgin Australia floats on the ASX. (AFR)

• Nanosonics faces rising short interest as doubts swirl around its new product launch despite strong gains. (Capital Brief)

• L1 Capital’s $70m blocking stake in Platinum Capital has drawn criticism from activist investors. (AFR)

• Canva sued in Texas by Cedar Lane over alleged AI patent infringement. (AFR)

VC

• None

People moves

• None

The watercooler