☕️ Boardroom battles

Good morning.

Activist investors are arguably the market’s most entertaining players—airing dirty laundry, forcing strategy overhauls and making boardrooms squirm.

Tanarra Capital’s Vidhur Rangaswamy is betting activism will grow into a serious asset class—à la Icahn or Ackman—with Aussie fundies taking aim at underperformance out in the open rather than behind closed doors.

But as Capital Brief’s Jack Derwin reports, not everyone’s buying it. Allan Gray’s Simon Mahwinney and Plato Investment Management’s Don Hamson dismiss the approach as futile. “(It’s) too hard,” Hamson says.

Let’s face it, Australia’s small, clubby market, dominated by insiders and family-controlled firms, isn’t exactly fertile ground for European or US-style shareholder revolts. That said, Rangaswamy’s vision is an appealing one.

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Market movers

Neuren Pharmaceuticals surged Thursday, recovering losses as hopes rose for EU approval of its groundbreaking Rett syndrome drug.

The quick sync

• Rokt's $5.6b valuation, $510M share sale and bold $457m acquisition overshadow cultural controversies as it eyes a 2026 IPO. (Capital Brief)

• As US corporations ditch DEI under political heat, signs suggest Australia might not be far behind. (Capital Brief)

• CBA urges RBA to end card surcharges entirely, sparking heated debate on fairness, costs and small business survival. (AFR)

• John Wylie says Telstra could add $10b to its value by selling future NBN payments to investors, but the plan hinges on NBN Co’s approval. (AFR)

• Goldman Sachs sees US$1 trillion in buybacks propelling Wall Street, as major companies prepare to repurchase shares amid cautious investor optimism. (Reuters)

Trading floor

M&A

• CommSec exits $300m syndicate due to conflicts from two major debt-focused floats. (AFR)

• Rio Tinto and Glencore discuss a merger that could create the largest mining company, with a focus on copper as the future of decarbonization. (Bloomberg)

• Rokt raised $510m in a secondary share sale and acquired mParticle for $300m, with an IPO planned for 2026. (Capital Brief)

• Pro Medicus secured a $33m deal with the University of Kentucky to expand its imaging platform in North America. (Capital Brief)

• KKR and Highland Europe acquire a majority stake in smaXtec for €190m, with Sophora keeping a minority share. (Bloomberg)

• Tim Eustace is selling his business, Mercury Private, for $30m, leveraging the growing demand for financial advice firms. (AFR)

• BHP and Lundin acquired Filo Corp, forming a joint venture for copper projects in Argentina and Chile. (Capital Brief)

• Korea Southern Power Co. and Pilot Energy are teaming up on the Mid West clean energy project to supply ammonia for co-firing in Korean coal plants. (PGY-KOSPO Joint Announcement)

• Honda explores acquiring Renault's 35.7% stake in Nissan as part of a strategic move for greater scale. (Bloomberg)

• KKR explores joining Apollo in a record buyout of Seven & i Holdings. (Bloomberg)

• El Jannah attracts sale interest as Morgan Stanley and private equity firms eye cult chicken chain. (AFR)

Capital Markets

• Smaller companies are driving demand for private credit, attracted by its flexibility, unlike larger enterprises. (Capital Brief)

• Sigma's $30bn merger with Chemist Warehouse is expected to shake up the ASX 200 and drive $537m in trades. (AFR)

• Activist investors are rising on the ASX, but fund managers remain divided on the approach's success in the local market. (Capital Brief)

• Morgan Stanley boosted shares in Corporate Travel and Life360 by adding them to its 'key ideas' list, citing improved earnings expectations. (Capital Brief)

• Neuren shares rebounded after a selloff, following Acadia's EU approval application for Rett syndrome treatment, trofinetide. (Capital Brief)

• FibreconX seeks $150m to expand its dark fibre network, with Lazard handling the investor search. (AFR)

• Law firms are preparing for ASIC's review of private markets by studying overseas regulations. (Capital Brief)

• Arafura shares rose with a $200m NRFC investment, but Bell Potter kept a 'hold' rating due to ongoing challenges. (Capital Brief)

• Macquarie downgraded Monadelphous to 'neutral' after a 20% rally and forecasts steady earnings growth. (Capital Brief)

• Block will pay a $128.5m fine and revamp its anti-money laundering program after a multistate investigation into Cash App.

• Adamantem invests $24m in Microgrid Power, with CBA providing a $30m debt package for expansion. (AFR)

• Regis Resources repaid a $300m loan early and is arranging a new credit facility for added flexibility. (Capital Brief)

• Hindenburg Research, famous for its short-selling reports, is closing. (Capital Brief)

• Zip shares surged following Sezzle’s revenue upgrade. (Capital Brief)

• As crypto roared back in 2024, NFTs crashed, recording their worst year since 2020 amid plummeting sales, slashed values and fading hype. (AFR)

VC

• ElectraLith raised $27.5m to advance its green lithium extraction technology, addressing inefficiencies in traditional methods. (Capital Brief)

People moves

• Strike Energy begins a strategic review after CEO Stuart Nicholls resigns, with Jill Hoffman as acting CEO and Neville Power aiding the process. (Capital Brief)

• ASIC named Scott Gregson as the new CEO, replacing Greg Yanco in March 2025, after his long tenure at the ACCC. Capital Brief)

• Goldman Sachs names Dirk Lievens co-chair of global financial institutions, with new co-heads for EMEA: Stephen Considine and Mathieu Munuera. (Bloomberg)

• Tabcorp's shares rose after naming Michael Fitzsimons as chief wagering officer. (Capital Brief)

• Albanese reshuffled ministers following Bill Shorten’s retirement. (Capital Brief)

• BP trims 7,700 jobs, pauses projects, and eyes oil and gas revival in a bid to reverse its decline. (Bloomberg)

• CFA Level II pass rate hits 39%, with deferred candidates lagging behind first-time testers. (Bloomberg)

The watercooler

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