Business and Financial News

The competition watchdog has flagged its intention to reject a proposal by a group of car rental companies to enter into collective negotiations with Perth Airport.

The Australian Competition and Consumer Commission said Perth Airport is using a competitive request for proposal process to allocate counter space and parking bays to car rental companies. A group of car rental companies wants to collectively bargain with the airport about the licence terms and conditions for counter space and parking bays.

The members of the proposed bargaining group – Hertz, Thrifty, Avis, Budget and Europcar – all currently offer car rental services at the airport. Full Article…

US coal giant Peabody Energy is citing the proposed resources super profits tax and the results of due diligence as the reasons for a reduction in its takeover bid for Macarthur Coal.

Peabody reduced its bid for Macarthur to $15 per share today, valuing the company at $3.815 billion, having earlier offered $16 per share, or $4.069 billion.

Since Peabody made its offer of $16 cash per Macarthur share on April 15, Macarthur’s share price has fallen more than 12 per cent, and it closed on Monday at $13.38.

The share price drop came after the federal government announced plans for a resources super profits tax, and a broader downturn in stocks in response to fears related to the Greek debt crisis.

A Peabody spokeswoman said the $16 offer was made in good faith, but was revised in light of Australia’s proposed new tax and after conducting due diligence.

“The definitive proposal delivers a clear, compelling and significant premium for Macarthur shareholders,” Peabody said in a statement.

Peabody made an original bid at $13 per Macarthur share, which was increased to $14 and later to $16.

Patersons Securities analyst Andrew Harrington said it was a highly unusual move for a bidder to reduce the highest offer after it was made. Full Article…

Old School Networking

During my first week as an executive search consultant in the insurance industry – more than a decade ago – I went to a conference in Arizona.  During a break, I introduced myself to the keynote speaker, Carl Van.  I told him that I had just begun my career. W

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Especially in today’s unstable and volatile market, investing can be a scary proposition. For many, a broker serves as a guide through the financial market jungle, and is an essential part of a solid investment strategy. For others, hiring a broker is simply the equivalent of handing money to a middleman, and seen as a necessary evil. Is it wise to buy stocks without a broker, or is the broker a source of advice worth paying for?

The decision on whether or not to use a full-service broker is largely dependent upon a person’s level of financial know-how. A broker’s job is not simply to process trades, but to give advice on the best times to buy and sell. Those

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Lower Trading Range Below $32.98 Detected for Shares of Ruddick (RDK)