☕️Plead the Fifth

Good morning.

Southern Cross Austereo has reportedly been approached by executives at Nine Entertainment over a possible deal involving the two companies, The Australian reported on Monday, following the closure of CoStar’s $3 billion acquisition of Domain.

That pushed shares over 26% higher, but CEO John Kelly, pleaded the fifth when speaking to Capital Brief, neither confirming nor denying reported discussions with executives at Nine over the possible deal.  

“As a board and certainly as an executive team, we do believe that media consolidation in Australia is required and will happen in time,” Kelly said.

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Market movers

Shares in plumbing supplies giant Reece tumbled almost 22% on Monday after the company reported a 20% slump in earnings, well short of analyst forecasts.

In a remarkable call with analysts, CEO Peter Wilson described the past year as one of the most challenging in the group’s history and warned investors the coming year will be no better, with the US housing market (which drives more than half of Reece’s revenue) expected to stay weak for longer.

The quick sync

• Australia risks being stuck as China’s farm unless it starts selling its innovation strengths alongside iron ore and wine, Julius Wei writes. (Capital Brief)

• ChatGPT trailblazer Jeremy Howard says Australia’s “extractive” copyright regime risks locking out competition and stifling AI innovation. (Capital Brief)

• SQC secures a seven-figure Defence contract to supply quantum chips that speed up AI development. (Capital Brief)

• Nine has poached ex-Optus Sport chief Howard Rees to drive its streaming strategy as Stan gears up for the Premier League kick-off. (Capital Brief)

• The politics of AI in Australia are beginning to take shape, but it’s still far from clear where the battlelines will fall. (Capital Brief)

• CBA boss Matt Comyn has cemented the bank as a powerful policy voice in Canberra, but its growing influence comes with rising risks. (Capital Brief)

Trading floor

M&A

• Santos granted XRG and Carlyle a second due diligence extension on their $36.4b takeover bid, with a binding offer yet to be confirmed. (Capital Brief)

• AirTrunk lands $16b green debt deal for net zero push. (AFR)

• Betr rebuffs MIXI’s higher PointsBet bid amid takeover tussle. (Capital Brief)

• Aurizon is exploring selling a minority stake in its rail business, though private equity has backed off and regulatory and financial hurdles remain. (The Australian)

• Betr weighs bid for Entain’s Aussie & NZ betting arm. (AFR)

• SQC wins Defence deal to supply quantum-AI chips. (Capital Brief)

• Southern Cross CEO signals openness to Nine merger amid industry consolidation. (Capital Brief)

• Aussie Broadband’s deal with More and Tangerine may push Vocus to rethink selling its consumer unit, losing significant wholesale business. (The Australian)

• Bain and Axight eye joint bid for $2.5b La Trobe sale. (AFR)

• Keurig to buy JDE Peet’s for €15.7b, forming world’s biggest coffee company. (Capital Brief)

• Equiem, the Grollo family-backed real estate software firm, is close to selecting a private equity partner to support its growth. (AFR)

• Pinault family is exploring options for Puma stake, including a sale. (Bloomberg)

Capital Markets

• Ansell profit up 33%, launches US$200m buyback. (Capital Brief)

• Nuix posts $9.2m loss on higher costs despite revenue growth. (Capital Brief)

• Guzman y Gomez sees 45% of shares released from escrow, with major holders mostly retaining their stakes. (The Australian)

• Chorus back in profit as fibre gains outweigh copper decline. (Capital Brief)

• IMDEX profit surges, but dividend trimmed on market caution. (Capital Brief)

• Bendigo Bank hit by $97m loss from impairment, grows digital base. (Capital Brief)

• Adore Beauty shifts focus to physical store growth. (AFR)

• Pilbara Minerals sinks to $196m loss on weak lithium prices. (Capital Brief)

• Data#3 profit climbs 11% on record $3b sales. (Capital Brief)

• NIB profit up 9.4% on record health insurance sales. (Capital Brief)

• Southern Cross profit rises on digital audio growth. (Capital Brief)

• Stanmore sinks to loss on lower coal prices. (Capital Brief)

• Ramelius Resources’ profit more than doubled to $474.2m, driven by higher gold prices and record production. (Capital Brief)

• Regis swings to $49m profit on stronger occupancy, acquisitions. (Capital Brief)

• Endeavour profit slides 16% on weak liquor sales, supply disruption. (Capital Brief)

• Aussie Broadband’s revenue surged past $1b in FY25 with a 25% profit lift, while selling its Buddy Telco brand to Tangerine. (Capital Brief)

• Aura Group launches $200m property debt fund led by Stanley Hsieh. (AFR)

• EVT profit rises to $33m, hotels strong but forecasts missed. (Capital Brief)

• Regal Partners profit drops 24% to $26.3m due to weaker performance fees, FUM jumps to $17.5b. (Capital Brief)

• Karoon boosts 2025 output guidance despite Baúna pump fault. (Capital Brief)

• Santos posted a US$439m first-half profit, slightly ahead of forecasts, with Barossa gas set to start soon. (Capital Brief)

• Kogan posts $39.5m loss on Mighty Ape hit despite revenue growth. (Capital Brief)

• Government backs $8.4m AI project RhinoMAP for respiratory disease treatment. (Capital Brief)

• QIC backs Ark Mines with $4.5m for Sandy Mitchell rare earths project. (Capital Brief)

• PLS posts $200m loss but stays bullish on lithium. (AFR)

• PolyNovo profit more than doubles to $13.2m on strong global sales. (Capital Brief)

• Infomedia profit up 6% as TPG buyout and AI projects advance. (Capital Brief)

• Fed rate-cut signals drive ASX mining rally. (Capital Brief)

• Vaxxas raises $90m, cuts 10% of staff, and saw CEO David Hoey and chair Paul Kelly step down. (Capital Brief)

• Ultra Violette withdraws Lean Screen after SPF test failures. (Smart Company)

• Intel says US govt’s 10% stake may hurt global sales and future grants. (Capital Brief)

• Elon Musk sues Apple & OpenAI over iPhone chatbot monopoly claims. (Capital Brief)

• Reporting season is shaping as the most volatile in more than 15 years, fuelled by passive funds, high valuations and soft earnings. (AFR)

VC 

• Send Payments raises $5m, names Matt Barr CEO as cofounder steps down. (Startup Daily)

• Lucia Bio, a UQ joint venture biotech, raised an extra $2m (total $3m) to advance its Syk inhibitors for autoimmune and neuroinflammatory conditions. (Startup Daily)

People moves

• Netflix appoints Amanda Duthie as new ANZ content director, adds Katherine Slattery as content manager. (Capital Brief)

• CBA names Belinda Allen head of Australian economics. (Capital Brief)

• Nine hires ex-Optus Sport exec Howard Rees to drive streaming strategy. (Capital Brief)

The watercooler