The local share market has closed the session higher after hitting an 18-month peak this afternoon, boosted by gains in the miners and financial stocks and merger activity in the resources sector.
The S&P/ASX 200 Index finished 7 points stronger at 4,961 – its highest closing level since September 2008 – while on the futures market, the SPI200’s up 5 points.
To company news around this afternoon: National Australia Bank Ltd (ASX:NAB) CEO Cameron Clyne says the bank is assessing its options regarding the sale of Royal Bank of Scotland branches in the UK. The first round of offers for the 318 branches closed in the UK today. It is believed NAB, along with other parties including Virgin Money and Banco Santander, are likely to bid for the branches. Mr Clyne says he is also confident the ACCC will approve NAB’s bid for Axa Asia Pacific Holdings. Shares in National Australia Bank closed 0.21% stronger at $28.
Seven Network Ltd’s (ASX:SEV) proposed merger with WesTrac has been attacked ahead of a shareholder vote later this month. Corporate advisory firm CGI Glass Lewis has told its clients to vote against the deal as it believes the merger’s value to shareholders appears uncertain. In a report criticising the merger, the firm also claims Seven’s independent directors did not conduct a sufficient evaluation of the proposed $3 billion deal before approving it. Shares in Seven Network closed 0.79% lower at $7.49.
Also making news: Australian Agricultural Company Ltd (ASX:AAC) chairman Stephen Lonie is resigning after less than a year in the position. The beef producer’s board has started looking for a replacement.
Cape Lambert Resources Ltd (ASX:CFE) has again encouraged DMC Mining Ltd shareholders to accept its $40 million takeover bid. Cape Lambert launched the offer of 40 cents per share last month and today issued its bidder’s statement to DMC shareholders.
Property investor Mirvac Group Ltd (ASX:MGR) has entered into exclusive discussions with Westpac Banking Coporation (ASX:WBC) regarding the potential acquisition of Westpac Office Trust.
And Macarthur Coal Ltd (ASX:MCC) has again rejected the advances of US coal major Peabody Energy, after Peabody sweetened its offer to $14 a share for the coal miner.
In the best and worst performers: The majority of sectors have closed the session in positive territory. The best performing sector at close was the Utilities index, up 53 points at 4,468. The worst performing sector was the Real Estate Investment Trust index; down 7 points to 865.
The best performing stock in the S&P/ ASX200 was Sigma Pharmaceuticals, shares rose 12.2% to $0.46, while shares in Macmahon Holdings and PanAust also closed higher.
The worst performing stock was Macarthur Coal, shares fell 5.23% to $14.31. Shares in Perseus Mining and Mirabela Nickel also closed in the red today.
In commodities, gold is trading at $1,137.20 U.S an ounce and light crude is up $0.04 to $86.88 U.S a barrel.
