☕️ Major turbulence

Where does Alan Joyce rank among Australia's worst CEOs?

September 06, 2023

Good morning.

Amid major turbulence, Alan Joyce has grabbed his parachute and headed for the emergency exit, leaving Vanessa Hudson to pilot Qantas to safety.

Wordplay aside, the airline is already trying to get on the front foot, promising to reprioritise customers after Joyce’s short-term focus on profits.

It’s got analysts asking questions. Does the Board need to change? Can Hudson really turn it around? And is Joyce’s legacy’s ruined? Some have tough answers.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Stop me if you’ve heard this one before but Chalice Mining is still sliding after that disastrous scoping study last week.

On day when the ASX200 was as flat as a lake, Chalice sunk another 13% on Tuesday.

Analysts at Jefferies have slashed its price target to $2, a downgrade of about 70%. Talk about a poisoned Chalice.

THE QUICK SYNC

  • Chip designer Arm is looking for a valuation of US$52 billion when it IPOs, garnering interest from Google, Nvidia and Apple. (Financial Times)

  • Oil has hit US$90 a barrel for the first time in 2023 as Saudi Arabia and Russia cut production. (Financial Times)

  • Facebook is winding back news in Europe (CNBC)

  • Morgan Stanley says China is ‘overinvested’ and ‘oversupplied’ unlike India (CNBC)

  • Writer strikes are beginning to hit the bottom line for film studios like Warner Brothers. (WSJ)

  • Rate hikes cut economic output for the next 12 years, Fed research suggests. (Bloomberg)

  • Australia will create startup 'landing pads' in Indonesia and Vietnam (Capital Brief)

TRADING FLOOR

M&A:

  • Tattarang pursues exclusive status in Rugby Australia investor quest. (AFR)

  • TPG Telecom and Vocus are discussing an extension for due diligence regarding the $6.3bn fiber bid. (AFR)

  • Orora is set to acquire Saverglass from The Carlyle Group for $2.16bn. (AFR)

  • L'Occitane shares plummet as CEO terminates discussions regarding a potential buyout. (AFR)

  • Orora's acquisition of Saverglass aims to leverage the thriving luxury market by producing bottles for high-end spirit brands. (The Australian)

  • Qantas will have to take a step back from mergers and acquisitions in the near future as it focuses on rebuilding its reputation with customers. (The Australian)

  • Companies within Odyssey Private Equity's portfolio are anticipated to be offered for sale in the near future. (The Australian)

  • Accolade Wines is attracting multiple groups interested in purchasing its distressed debt as advisors are engaged to facilitate asset sales. (The Australian)

Capital Markets:

  • Orora initiated a $1.345bn equity raise, comprising a $450m institutional placement and an $895m rights offering. (AFR)

    • Orora's $1.35bn fundraising secures institutional support despite a substantial discount. (AFR)

VC:

  • Lighter Capital is prepared to lend $30m to startups, with backing from Invest Victoria. (Startup Daily)

  • The deadline for applications to Catalysr's startup accelerator program for 'migrapreneurs' is approaching. (Startup Daily)

Others:

  • Tabcorp receives its largest-ever fine of $1m due to a betting system outage. (BNA)

  • Qantas Airways CEO Alan Joyce has chosen to step down earlier than originally planned. (BNA)

  • ASIC takes legal action against Westpac for not adequately assisting customers experiencing financial hardship. (BNA)

  • Private equity firms are facing pressure to invest unused capital and divest assets to generate returns. (AFR)

  • Job cuts follow a restructuring at Carted, a company backed by Blackbird Ventures. (AFR)

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THE WATERCOOLER