☕️Not Dead Yet

Good morning.

Sydney hedge fund Harvest Lane is betting that Mayne Pharma will force its reluctant US suitor Cosette Pharmaceuticals to complete its $672 million takeover. The hedge fund chief Luke Cummings told Capital Brief that “The share price is suggesting the deal is dead but that’s far from true.”

Mayne’s share price rocketed 60% in February on Cosette’s takeover bid, that valued the company at $7.20 a share. Last week it fell back off a cliff as Cosette announced a review as it looked to withdraw.

Should Cummings be on the money, Harvest Lane and other shareholders (like pub baron Bruce Mathieson, who owns 6% of the company) will be on track for a major pay day.

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Market movers

Elders shares fell Monday after half-year earnings missed expectations due to dry weather, despite profit more than doubling.

The quick sync

• CFS and Mercer Super raise concerns over continuation funds, citing valuation risks when private equity assets shift between fund vintages. (Capital Brief)

• Westpac's poaching of CBA's AI chief amid a global generative AI scramble exposes rising executive tensions and succession challenges in Australian banking. (Capital Brief)

• Justice Lee’s message to Star Entertainment’s board: if you take the director’s fees, don’t complain about the work. (Capital Brief)

• As his pub empire crumbles, Jon Adgemis drags his mother into a legal battle over a $10m Sydney home she claims he mortgaged behind her back. (AFR)

Trading floor

M&A

• Genesis to buy Laverton gold project for $250m to boost scale and cut costs. (Capital Brief)

• Westgold, New Murchison dismiss takeover rumours, confirm no offer made. (Capital Brief)

• TA Associates and AZ NGA submit first-round bids for Perpetual’s $500m+ wealth management arm. (AFR)

• Healthscope enters receivership; McGrathNicol to oversee sale as hospitals stay open. (Capital Brief)

• Viva Leisure has acquired a 33% stake in Gold Coast supplement startup Gorilla X Labs. (Market Index)

• Tony Quinn's NextGen Pet Foods, maker of Evolution Naturals, has hired EY to manage a sale process. (AFR)

• United Tractors may buy the $2b Ravenswood mine after Regis Resources reportedly drops out, with Regis possibly targeting Bellevue Gold next. (The Australian)

• Harvest Lane and Bruce Mathieson are betting Mayne Pharma’s takeover fight with Cosette Pharmaceuticals isn’t over yet. (Capital Brief)

Capital Markets

• Origin lifts earnings forecast for core business, warns of Octopus loss. (Capital Brief)

• Greatland Gold launches $50m IPO for ASX debut. (AFR)

• Elders' profit up 190% on livestock rebound and acquisitions. (Capital Brief)

• Northcape shuts global equity funds and returns investor money. (AFR)

• Nufarm rejects ASX breach claims after 30% share drop, says earnings met expectations. (Capital Brief)

• Envirolab Services seeks capital partner for expansion, hires KPMG to review options. (AFR)

• EU orders Shein to fix consumer law breaches within a month or risk fines of at least 4% of sales. (Capital Brief)

• Trump Media and Technology Group plans to raise US$3b to buy cryptocurrencies as the family’s push into digital assets accelerates. (FT)

VC

• Australia’s tech and investment groups warn that taxing unrealised super gains will undermine VC funding and threaten the nation’s productivity agenda. (Capital Brief)

People moves

• Challenger names John Somerville and David Whittle as new directors; JoAnne Stephenson to retire. (Capital Brief)

• Immutable’s turmoil deepens as two senior execs quit amid a third of staff cuts in nine months. (AFR)

• Accent Group chair David Gordon to retire; Lawrence Myers named successor. (Capital Brief)

• ANZ’s new CEO Nuno Matos makes his first major hire, appointing Santander’s Stephen White as head of operations. (AFR)

The watercooler