☕️ Deal leaks

Good morning.

Brisbane property developer Patrick Farrugia is crying foul over what he suspects is a sabotage attempt by Star Entertainment and investment bank Barrenjoey. Farrugia told Capital Brief’s Jack Derwin how his bid for a slice of Star’s empire through an entity called Hard Rock Hotels & Resorts (Pacific) (but not the US conglomerate Hard Rock International, as initially reported) unravelled amid leaks and misinformation that led to confusion and a dramatic share spike.

He is outraged by what he sees as unprofessional conduct and potential sabotage, and has referred the mess to ASIC. The regulator has promised to clamp down on leaking as part of a broader push to enhance market integrity, following concerns over similar incidents.

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Market movers

Oil and gas stocks perked up on the ASX on Tuesday as crude prices bounced back amid escalating Middle East tensions. Alas, Woodside Energy shares didn’t share in the spoils. Instead, they plunged 5% after unveiling the US$2.35b ($3.61b) buyout of a clean ammonia project in Texas.

The quick sync

• Alphabet’s unusual Character.AI deal, where Google acquires talent and licensing rights but not equity, is likely to raise eyebrows with regulators and reflects a growing trend between Big Tech giants and aspiring AI startups. (Capital Brief)

• Ex-CFMEU boss John Setka and the Victorian head of the Health Services Union, Diana Asmar, are facing an investigation into allegations more than $3m of union money was paid to printing firms for non-existent services. (AFR)

• The Japanese yen carry trade is unwinding. Here's what that means. (Capital Brief)

• AI start-up Leonardo.AI earned $1.25m in the month before it accepted Canva’s buyout offer, but was finding it challenging to grow users and faced hundreds of millions in capital costs. (AFR)

• An FOI request shows ASIC and the AOFM saw ‘warning signs’ with a $14b bond placement by ANZ months before launching a formal investigation in October 2023. (The Australian)

Trading floor

M&A

• Westpac has closed RAMS Financial to new home loan applications but will maintain and service existing loans, stating the move will not impact its financial results. (Capital Brief)

• St George Mining is acquiring Brazil's Araxa niobium project for $38m and raising $21.25m to fund the purchase and initial drilling. (AFR)

• Regis Resources is considering a joint venture for its McPhillamys gold project to reduce risks, provided it offers reasonable value for shareholders. (The Australian)

• Rinnai Corporation has acquired a majority stake in Smart Energy to enter Australia's renewable energy market. (AFR)

• Yancoal is pursuing Anglo American's Queensland coal mines for up to $5bn with RBC's help, competing against Glencore and facing regulatory scrutiny. (The Australian)

• Houlihan Lokey has been appointed by BDO Australia to manage the sale of Nature’s Care, a vitamin and supplements maker in receivership. (AFR)

• Discussions between Gold Road Resources and Regis Resources have ended, with Emerald Resources and Capricorn Metals now eyeing Gold Road for its stake in De Grey Mining and the Gruyere gold mine. (The Australian)

Capital Markets

• Treasury Wine Estates will take a substantial impairment and divest its lower-end brands, citing market challenges and underperformance in the commercial wine sector. (Capital Brief)

• Mosaic Brands, an Australian clothing retailer, is facing financial difficulties and has entered "safe harbor" to protect its directors from personal liability while they restructure the business. (AFR)

• Liontown Resources CEO Tony Ottaviano criticized short sellers, stating a share raise would be too dilutive and unnecessary due to their $450m funding. (The Australian)

VC

• Rich Data Co secured $9m from Acorn Capital, finalizing a $37m Series B raise to boost its North American expansion. (Capital Brief)

• OneVentures, a Sydney VC fund, is planning to return $100m to investors and raise a new $200m fund to invest in later-stage tech companies. (Startup Daily)

• Bom Shin and Kevin Ghazi, former executives from Iren, have launched BKC, a Sydney-based real estate investment manager specializing in industrial and last-mile logistics assets. (AFR)

People moves

• Global X ETFs is losing its head of portfolio management, Cliff Man, after more than a decade. (AFR)

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The watercooler