☕️ Copy, Paste

Good morning.

Counter-drone business Electro Optic Systems (EOS) rattled investors by confirming its CEO Andreas Schwer, and other members of the leadership team, will dispose of the vast majority of their shares in the company.

Schwer is set to sell up to 2.5 million shares — or around $22.3 million based on the day’s closing price of $8.90 — representing the vast majority of his current 2.9 million shareholding. EOS’ chief financial and operating officer Clive Cuthell, and other members of the management team, are expected to dispose of “some or all” of their shareholdings “in the near term”.

The announcement published shortly before the end of trading on Tuesday, saw EOS shares crater 17% in less than an hour. “The market reaction is everyone seeing the potential for another DroneShield here,” Merewether Capital co-founder and portfolio manager Luke Winchester told Capital Brief.

🏆 LOI Subscriber #TBD

Market movers

Shares in non-bank lender Pepper Money dived 14.9% on Tuesday after Challenger slashed its takeover offer from $2.60 to $2.25 per share, citing deteriorating market conditions and a worsening operating environment.

The quick sync

• The RBA dismissed markets' interpretation of a deputy governor's podcast as a rate hike signal, says its approach won’t change. (Capital Brief)

• Surging fuel costs and Middle East conflict are complicating the RBA’s inflation fight and lifting the stakes for the May budget. (Capital Brief)

• US startup Superpower is paying ASX-listed Tetratherix USD3m a year to replace peptide injections with a nasal spray, funding research Big Pharma won't. (Capital Brief)

• OpenAI hires veteran tech lobbyist to run its Australia and New Zealand policy work as Canberra weighs copyright rules for AI training. (Capital Brief)

• Middle East turmoil forces Jim Chalmers to delay key decisions ahead of the 12 May budget, closing the window for reform. (Capital Brief)

• Danish energy trader InCommodities lifts Australian investment to $500m with battery storage deal signed during the Danish royal visit. (Capital Brief)

Trading floor

M&A

• Challenger Limited cuts Pepper Money bid amid weaker market conditions. (Capital Brief)

• PEXA Group to sell .id business as part of divestment plan. (Capital Brief)

• Alliance SI seeks buyer at $90m valuation following 59% revenue rise to $69.9m. (AFR)

• EU-Australia trade deal near completion, with EU Commission President Ursula von der Leyen possibly visiting Australia within a week to sign the agreement. (Capital Brief)

• Distressed Barbeques Galore and Fitness & Lifestyle Group hit the market post-restructure. (The Australian)

• Tetratherix and Superpower team up on nasal spray delivery for peptide medicines. (Capital Brief)

• Affinity opens $1b Scottish Pacific sale process to private equity and trade buyers. (The Australian)

• Mastercard to buy BVNK for USD1.8b, boosting digital asset and blockchain payment offerings. (Capital Brief)

• IBM acquires Confluent for USD11b to enhance AI-focused enterprise data, with Confluent delisting from Nasdaq. (Capital Brief)

• Bidding war for Janus Henderson intensifies as Victory Capital makes fresh offer. (FT)(Reuters)

• Canadian billionaire Stephen Smith buys GBP300m stake in The Economist. (FT)

Capital Markets

• New Hope profit drops 84% on bad weather and low coal prices, dragging shares down. (Capital Brief)

• West African profit jumps 130% on strong gold output, lifting shares. (Capital Brief)

• Morgan Stanley added to Firmus Technologies’ $1b+ IPO ahead of June 30 debut. (AFR)

• Consumer spending rose 0.4% in February, led by goods and services growth. (Capital Brief)

• Mercury opens new geothermal unit to increase power supply in New Zealand. (Capital Brief)

• Vinomofo readies secondary share sale and recapitalisation after Blue Sky exit. (AFR)

• Vulcan Energy gains permit for lithium project, boosting shares. (Capital Brief)

• Pantoro shares rise after UBS buy rating on strong outlook. (Capital Brief)

• AI-fueled data centre projects face funding challenges due to limited insurance coverage. (AFR)

• RBA raises rates to 4.10%; big four banks pass on the hike to borrowers. (Capital Brief) (Capital Brief)

• RBA says Hauser’s podcast wasn’t guidance despite markets pricing in rate hike. (Capital Brief)

• Koala founders set for $117m windfall as company lists on ASX. (AFR)

• EOS shares drop 15% after CEO announces large share sale. (Capital Brief) (Capital Brief)

• NDIS fees rise with federal caps despite no service improvement, exposing pricing issues. (AFR)

• Future Fund chair Greg Combet flags geopolitical risks as a key long-term investment challenge. (Capital Brief)

• Nebius plans USD3.75b debt raise to fund AI cloud expansion following Meta and Nvidia partnerships. (Capital Brief)

• NRFC backs Advanced Navigation with $50m to develop GPS-independent navigation systems. (Capital Brief)

• BNP bets European private credit boom can defy US downturn. (FT)

  Investors pile into cash at fastest pace since pandemic on Iran fears: BofA survey. (FT)

• Debt investors offloading debt exposures to software companies at discount is latest sign of pain (Reuters)

• Traders are ditching giant hedge funds to set their own terms. (Bloomberg)

• UBS faced technology outage that impacted trading business. (Bloomberg)

• Wealth bankers rush to calm growing private credit fears in Asia. (Bloomberg)

VC 

• OpenAI triples API credits and adds ChatGPT seats for Australian startups. (Capital Brief)

People moves

• OpenAI hires Brent Thomas for ANZ policy role amid AI copyright reforms. (Capital Brief)

• Citi small-cap analyst Will Park moves to UBS research team in April. (AFR)

• Pete Robinson departs Challenger for Barings’ fixed income team. (AFR)

• Former Woolworths CEO Brad Banducci rejects claims he pressured Miwah Van to work during cancer treatment. (AFR)

The watercooler