☕️Outta (El)sight

Good morning.

Israel-based Elsight is now on a run that eclipses even the widely hyped names of DroneShield and Electro Optic Systems. Listed on the ASX in 2017, Elsight has rocketed more than 1,500% over the last 12 months, cracking the ASX 300 index in last month’s rebalance.

Elsight’s flagship communications module Halo, designed for military drones, robotic vehicles and other uncrewed systems, scored ‘Blue List’ status in the US this week, which means military units can buy the tech directly through an acquisition marketplace run by the Department of War.

Regal Partners’ Phil King told Capital Brief the Israeli company is “one of the most exciting exposures to the defence industry on the ASX” with its products now on Trump’s shopping list.

🏆 LOI Subscriber #TBD

Market movers

Shares in oOh!media, Australia's largest outdoor advertising company, jumped on Wednesday after Pacific Equity Partners made an unsolicited, non-binding indicative offer valuing the company at approximately $747 million, or $1.40 per share.

The quick sync

• Claude Mythos is a real cyber wake-up call but experts urge caution over hype. (Capital Brief)

• Ayres eyes more AI deals with tech giants but says states must get on board first. (Capital Brief)

• With inflation at 4.6% and Budget day days away, Labor's resilience pitch will need more than rhetoric to stick. (Capital Brief)

• Trump's "foreign extortion" blast over Australia's news levy puts Canberra on notice but experts say retaliation is far from certain. (Capital Brief)

• Atlassian employees are willing an Anthropic takeover into existence, but the rumour itself doesn't stack up. (Capital Brief)

Trading floor

M&A

• Unfounded rumours of an Atlassian takeover by Anthropic persist amid speculation. (Capital Brief)

• KONE agrees to buy TK Elevator in a USD34.4b deal. (WSJ)

• ANZ buys out Worldline to take full control of its merchant payments business. (Capital Brief)

• oOh!media receives a $747m takeover offer from Pacific Equity Partners. (Capital Brief)

• Cognizant to acquire Astreya for about USD600m. (Reuters)

• Morgan Stanley strategist advises buying stock dips. (Bloomberg)

• Altered Capital is the last bidder for Fletcher Living, backed by Goldman Sachs financing. (The Australian)

• Pernod Ricard and Brown-Forman end deal discussions. (WSJ)

• Ares Management to acquire a stake in a natural gas pipeline from Blackstone. (Reuters)

• EQT Partners prepares an improved takeover offer for Intertek. (Bloomberg)

• Qscan’s sale is down to a few bidders, with valuation expected above NZD800m. (The Australian)

• Airbus signs a USD21.4b deal with China Southern Airlines. (Bloomberg)

• Universal Music Group plans to sell half its stake in Spotify after strong subscription growth. (Bloomberg)

Capital Markets

• Microsoft posts record quarterly sales, but shares slip in bumper Big Tech session. (Capital Brief)

• The Walt Disney Company will not spin off ESPN. (Bloomberg)

• Citadel Securities expands in Asia with major hiring push. (Bloomberg)

• Woodside Energy reports an 8% drop in Q1 production due to severe weather. (Capital Brief)

• Goldman Sachs restricts staff access to Anthropic’s Claude AI tool. (Bloomberg)

• Bellevue Gold posts stronger Q3 production and maintains guidance. (Capital Brief)

• G8 Education shares fell 29% after closing centres due to inflation pressures. (Capital Brief)

• OpenAI pushes back on growth concerns, citing strong performance. (AFR)

• Codan targets a 60% earnings increase in FY26. (Capital Brief)

• Grant Thornton CEO dismisses concerns over private equity ownership. (AFR)

• Aldi profit drops 20% amid price war with Coles Group and Woolworths Group. (AFR)

• Donald Trump’s criticism of foreign tech practices escalates tensions in Australia’s Big Tech regulation debate. (Capital Brief)

• UBS posts USD3b profit and signals more share buybacks. (Bloomberg)

• Volvo Cars earnings decline amid tougher US and China competition. (Bloomberg)

• Adidas reports strong growth driven by apparel and football sales. (Bloomberg)

• Blackstone invests USD2b in Eurowind Energy. (Bloomberg)

• Bureau seeks growth capital after securing a WeWork deal. (AFR)

• Lineage explores options for its $2.5b Asia-Pacific business. (AFR)

• Inflation rose 4.6% over the 12 months to March. (Capital Brief)

• Scyne Advisory targets first profit as COO exits. (AFR)

• Tabcorp bans professional gamblers from its platform. (AFR)

• Firmus IPO timing remains uncertain. (AFR)

• Blue Owl Capital shares slump, with earnings seen as next risk. (Bloomberg)

• APRA urges banks to strengthen defenses against AI-driven cyberattacks. (AFR)

• Meta admits deleting key evidence in a legal dispute with Andrew Forrest. (AFR)

• Yum! Brands beats estimates as Taco Bell offsets weaker KFC and Pizza Hut.(Bloomberg)

• Blackstone creates a new unit to manage AI and high-growth tech investments. (Bloomberg)

• KNDS finds no misconduct in its Qatar deal investigation. (Reuters)

• Uber adds hotel bookings via partnership with Expedia. (Bloomberg)

• Meta found in breach of EU law over child safety on its platforms. (Capital Brief)

• Motorola launches new Razr foldables at higher prices. (Bloomberg)

• Penny Wong urges China to prioritise fuel shipments to Australia. (Capital Brief)

• iOS 27 introduces new features including enhanced Siri and AI-powered tools. (Bloomberg)

• Meta’s power demand drives Entergy to boost spending by USD14b. (Bloomberg)

• PayPal plans to spin off Venmo into a standalone unit. (Bloomberg)

• United States crude stockpiles fall as exports hit record highs. (Capital Brief)

• ARN Media faces lawsuits and leadership pressure amid internal conflicts. (AFR)

• Australia’s superannuation sector is undergoing significant structural changes. (AFR)

• Federal Reserve holds interest rates in a highly divided decision. (Capital Brief)

• Tim Ayres pushes hyperscalers to increase AI investment deals. (Capital Brief)

• Experts debate cybersecurity risks linked to Anthropic’s AI models. (Capital Brief)

• Elsight moves closer to ASX 200 inclusion with regulatory progress. (Capital Brief)

• Fidelity mandates five days in office, ending hybrid policy. (Bloomberg)

• Bill Ackman’s Pershing Square USA sinks 16% after USD5b IPO. (Bloomberg)

• Oil traders lawyer up as Hormuz disruptions trigger billions of dollars in disputes. (Bloomberg)

VC 

• Manifest raises $2m to help ad agencies eliminate timesheets. (Smart Company)

• Startmate’s Michael Batko promotes “founder mode” approach with Hourglass AI. (Startup Daily)

People moves

• Regis Healthcare hires Andrew Kinkade as new CEO. (Capital Brief)

• Kelly Bayer Rosmarin pivots to founding an AI startup. (AFR)

• IGO Limited CFO Johan van Vuuren resigns after less than a month. (Capital Brief)

• Wes Maas withdraws from a Macquarie Group conference. (AFR)

• Kevin Warsh clears a key Senate hurdle with committee approval. (Capital Brief)

• IBM will add 750 jobs in AI and quantum computing in Chicago. (Bloomberg)

The watercooler