Australia's Whitehaven Coal Gets Takeover Proposal

Marcus Jacob
16 Jul, 2012
New York City

Australian indexes closed higher for the second day in a row as investors bid up resources stocks. Whitehaven Coal surged 17% after it received a takeover bid. Seven West Media was halted after it planned to finish its $440 million offering at 20% discount.

[R]7:30 PM Sydney – Australian indexes closed higher for the second day in a row as investors bid up resources stocks. Whitehaven Coal surged 17% after it received a takeover bid. Seven West Media was halted after it planned to finish its $440 million offering at 20% discount.[/R]

Australian stocks traded higher for the second day in a row after China reported economic growth that met expectations and investors awaited global economic report from the I.M.F.

The ASX 200 index increased 22.90 to 4,105.10 and All Ordinaries index gained 24.87 to 4,143.20. The Australian dollar closed at US$1.016.

In trading, stock turnover declined to 1.1 billion shares worth $2.8 billion and 503 stocks closed higher, 356 declined and 352 were unchanged.

Stock Movers

News Corp increased 14 cents to $21.58 and Ten Network closed unchanged at 48 cents and Fairfax Media fell 1 cent to 55 cents.

Seven West Media was halted after it last traded at $1.62 and the company announced a plan to raise $440 million at $1.32 per share price.

Resources stocks extended rally for the second day after China reported economic growth that met expectations.

BHP Billiton Limited advanced 29 cents to $30.77 and Rio Tinto Limited gained 41 cents to $54.49. Fortescue Metals Group increased 11 cents to $4.64.

Iluka Resources added 21 cents to $9.01, Lynas Corporation Limited unchanged at 85 cents, Newcrest Mining advanced 35 cents to $21.50 and Kingsgate rose 1 cent to $4.87.

Whitehaven Coal soared 17% or 62 cents to $4.07 after billionaire Nathan Tinkler submitted a formal takeover proposal.

Oil Search Limited gained 17 cent to $6.50 and Santos Limited slid 4 cents to $10.33.

Woodside Petroleum increased 26 cents to $30.56 after it won environmental approval for its $30 billion natural gas project in Kimberly region.

Metcash closed up 3 cents at $3.20, Harvey Norman Holdings unchanged to $1.93 and Woolworths fell 2 cents to $26.92. Kathmandu added 2 cents to $1.11.

David Jones Limited closed down 1 cent to $2.37. Telstra fell 1 cent to $3.83 and Billabong International Limited slid 2 cents to $1.05.

Commonwealth Bank of Australia advanced 29 cents to $54.06 and Bank of Queensland added 8 cents to $6.65. ANZ gained 13 cents to $22.48. National Australia Bank slumped 10 cents to $23.50 and Westpac Banking Corporation increased 11 cents to $22.16.

Macquarie Group closed unchanged at $25.35 and Perpetual Limited advanced 54 cents to $23.20.

Leighton declined 20 cents to $15.88, Stockland rose 1 cent to $3.16 and Toll Holdings added 4 cents to $3.80.

Qantas fell 2 cents to $1.03, Virgin Australia closed up 0.5 cents at 38.5 cents and Flight Centre increased 14 cents to $20.76.

QR National gained 11 cents to $3.29.