☕️Digital Blackout

Good morning.

The VC community is unlikely to see many X posts from the typically provocative Misha Saul in the near future, after the head of EVP’s Opportunities Fund wiped his account and online associations with the ill-fated StrongRoom AI.

Sources give Capital Brief a mixed picture of Saul, who led the $17 million raise which valued the company at $70 million just two weeks before EVP called in authorities over activities at the medtech. HLB Man Judd was tapped as administrator on Friday after the board concluded there were doubts about its solvency.

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Market movers

Orora shares fell Friday as its French glass bottle unit Saverglass came under regulatory scrutiny over cartel claims predating its acquisition.

The quick sync

• SMSFs are increasingly investing in crypto while the rest of the super industry stalls, exposing a disconnect between investor appetite and institutional caution. (Capital Brief)

• As Crypto.com’s Vakul Talwar writes, Australia must act now on crypto regulation or risk falling behind global peers as political and investor momentum builds in 2025. (Capital Brief)

• Harrison.ai’s bottom line got a boost from a one-off gain, but the startup’s rising costs and reliance on fresh funding show the pressure behind the AI hype. (Capital Brief)

• Dion Lee’s downfall has torn the Levis family apart, with heir-apparent Justin suing his parents after being ousted from the fashion empire he expected to inherit. (AFR)

Trading floor

M&A

• Elon Musk’s xAI has acquired social media platform X for $71.5b in an all-stock deal. (Reuters)

• CoStar and Domain are finalizing paperwork for a $2.8b takeover, with due diligence set to begin soon. (Capital Brief)

• Investment banks are positioning for Quadrant's potential $2b sale of The Entertainment and Education Group (TEEG). (The Australian)

• CVC Capital Partners reconfirms its bid for Zenith Energy as suitors prepare final offers this week. (AFR)

• Woolworths denies Country Road Group sale rumors despite weak earnings. (The Australian)

• HMC Capital has made a takeover bid for Healthscope, contingent on lenders accepting debt reductions. (AFR)

• Nine may use Domain sale funds for acquisitions instead of investor returns. (The Australian)

Capital Markets

• The RBA is expected to keep rates steady, but governor Michele Bullock's comments will be closely watched during the federal election campaign. (Capital Brief)

• Frasers Group plans to expand its stake in Accent Group to 19.99% and launch a joint venture to grow Sports Direct in Australia. (AFR)

• StrongRoom AI enters administration amid financial dispute after $17m raise. (Capital Brief)

• China's top state banks are raising $114b to strengthen capital buffers amid slowing profits and economic stimulus plans. (Capital Brief)

• Virgin Australia has kicked off its IPO push, meeting investors and hiring an IR team as Bain and Qatar prepare to open the airline to public shareholders. (AFR)

• ASIC flags super fund failures, issues 34 reform recommendations. (Capital Brief)

• InfraBuild’s financial woes may open doors for Boral’s Vik Bansal to take over. (The Australian)

• ASIC slams super fund boards for failing death benefit claimants, warning directors they're firmly in the firing line as regulatory heat intensifies. (Capital Brief)

• Debtwire data shows global investors have clawed back just 0.6% of US$147b in offshore debt from Chinese developers since 2021, highlighting deepening market risks. (FT)

• Insignia Financial lost nearly $6b in retirement savings to rivals last year, as adviser-led switching and platform migration drove a surge in super fund outflows. (AFR)

VC

• None

People moves

• Canaccord axes veteran director Adam De Petro in a surprise shake-up, shifting firepower to Sydney as ECM deal-making slows. (Capital Brief)

• Plenary appoints Paul Crowe as CEO while preparing a $3.7b bid for the Brisbane Olympics stadium. (AFR)

The watercooler