☕️Seeking Retribution

Good morning.

A federal court judge has ruled that the dispute between the HR startup Employment Hero and ASX jobs giant Seek will proceed to trial and investors are hyper-focused on the outcome, Capital Brief reports.

The lawsuit centres on Employment Hero's allegation that Seek broke competition laws by denying it crucial access to its API.

Morgan Stanley analyst Andrew McLeod last week told clients he is monitoring the dispute closely, and that it may have even distracted from Seek's most recent results, which he viewed as among the best on the ASX during the recently ended reporting season.

"It’s a complex relationship because they are both partners, competitors and Seek is an investor in the company," McLeod said in a video published last week.

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Market movers

Shares in Santos plunged almost 12% on Thursday after the consortium led by ADNOC’s investment arm XRG pulled its $36 billion takeover bid, just days before deadline. The offer collapsed over a looming PNG tax bill, gas supply tensions and regulatory demands, helping drag the ASX 200 down 0.83% as energy stocks sank.

The quick sync

• Queensland courts soften AI stance compared to NSW, but careless chatbot use could still cost litigants. (Capital Brief)

• Blended finance is the only lever Australia has left to stop its world-class deep tech from stalling or going offshore, Kylie Frazer writes. (Capital Brief)

• Matt Leibowitz returns as Stake CEO, betting he can outpace rivals in a tougher market. (Capital Brief)

• Investors slam vague 2035 climate target, push for tougher carbon rules and expanded coverage across heavy industry and transport. (Capital Brief)

• Jim Chalmers will meet OpenAI’s strategy chief as Australia vies for a spot in the company’s billion-dollar AI infrastructure rollout after its UK deal. (Capital Brief)

Trading floor

M&A

• Atlassian makes $1.5b DX acquisition to boost AI and developer tools. (Capital Brief)

• A PNG tax fight, rising regulatory pressure and east coast gas tensions sank the XRG-led consortium’s $36b Santos bid. (Capital Brief)

• Santos CEO Kevin Gallagher is facing calls from investors to consider asset sales to lift value for shareholders. (AFR)

• Mitsubishi lifts FleetPartners stake to 19.9%, sparking takeover talk. (The Australian)

• Macquarie–Carlyle $1tn merger talks collapse as Carlyle recovery takes hold. (Capital Brief)

• Mirvac eyes control of $10b APPF funds amid fee concerns. (The Australian)

• Quadrant nears Grays.com sale with two bidders in play. (AFR)

• UGL transport arm nears $1b sale to offshore PE firm. (The Australian)

• Rex airline nears sale as US bidder Air T makes offer. (AFR)

Capital Markets

• Macquarie cuts Magellan to underperform, flags earnings and outflow risks. (Capital Brief)

• OAIC finds Kmart’s facial recognition use unlawful, breaching Australians’ privacy. (Capital Brief)

• Evie Networks secures $50m from Infradebt to fund expansion. (AFR)

• Unemployment steady at 4.2%, but full-time jobs fell, especially for women. (Capital Brief)

• Chalmers to discuss AI investment with OpenAI after UK expansion. (Capital Brief)

• Santos slump and lower oil prices hit ASX 200 energy stocks. (Capital Brief)(AFR)

• $7.2b Rokt knocked back by local buyout fund despite IPO plans. (AFR)

• ASIC halts new investments in La Trobe 12 Month Term fund. (Capital Brief)

• Build Club pilots AI upskilling tool, Lendi saves 10,000 hours. (Startup Daily)

• Investors push for tougher carbon rules to meet 2035 target. (Capital Brief)

• ADIA moves to refinance $4b in Australian infrastructure assets. (AFR)

• Intel soars 30% on $5b Nvidia investment and chip partnership. (Capital Brief)

• Origin’s Octopus to spin off Kraken tech unit after rapid growth. (AFR)

• Productivity Commission pushes net cashflow tax despite weak growth. (Capital Brief)

• Huawei unveils chip roadmap to rival Nvidia and boost China’s self-reliance. (Capital Brief)

• FTC sues Ticketmaster, Live Nation for profiting off inflated resale fees. (Capital Brief)

• Employment Hero–Seek dispute heads to trial, drawing investor focus. (Capital Brief)

VC 

• CommBank’s x15ventures teams up with Triple Bubble to grow fintech innovation. (Capital Brief)

• Sydney startup Puralink raises $2.3m for leak-detecting pipe robots. (Smart Company)

People moves

• Endeavour hires Woolworths exec Jeanette Fenske as new BWS boss. (Capital Brief)

• Genesis Energy adds Macquarie’s David Baldwin to board. (Capital Brief)

• Anglo American cuts 300 coal jobs amid nationwide layoffs. (AFR)

• Deliveroo CEO Will Shu to exit after $6b DoorDash merger. (Capital Brief)

• Domino’s director Lynda O’Grady resigns after a decade. (Capital Brief)

• Stake co-founder Matt Leibowitz returns as CEO. (Capital Brief)

The watercooler