South Africa Based Woolworths Approves David Jones Acquisition

Marcus Jacob
18 Jun, 2014
New York City

Australian trading volume surged after Royal Dutch Shell sold its stake in Woodside Petroleum. South Africa based Woolworth shareholders approved the deal to acquire David Jones. Aquila Resources recommended to merge with China based Baosteel.

[R]5:00 PM Sydney – Australian trading volume surged after Royal Dutch Shell sold its stake in Woodside Petroleum. South Africa based Woolworth shareholders approved the deal to acquire David Jones. Aquila Resources recommended to merge with China based Baosteel.[/R]

Australian stock closed lower after trading flat for most of the session and trading volume shot up to the high after Royal Dutch Shell completed the sale of some of its stake in Woodside Petroleum.

Australian dollar fell to 93.33 U.S. cents and stock trading turnover climbed to 821 million shares worth $8.14 billion.

ASX 200 index slid 18 or 0.3% to 5,382.70 and the broader All Ordinaries fell 16.80 to 5,363.90.

Stocks in Review

Aquila Resources Limited surged 7% to $3.35 after the coal, iron ore and manganese explorer recommended its shareholders to accept a takeover offer led by China-based steel producer Baosteel Resources and Aurizon Holdings Ltd. valuing the company at $1.3 billion, a surprise turnout after rejecting a higher bid from its rival.

Mineral Resources Limited dropped 2.1% to $9.35 after the materials handling services provider failed in its bid to take control of iron ore explorer Aquila Resources.

Newcrest Mining Limited gained 1.8% to $10.15 and the gold, copper and silver producer was fined by the Australian Securities and Investments Commission for $1.2 million for releasing its production forecast to analysts prior to public disclosure.

Pulse Health Limited jumped 2.8% to 54 cents after the private hospitals investor agreed to acquire 34-bed North Mackay Private Hospital in Queensland for $3 million.

Woodside Petroleum Limited declined 4.5% to $40.90 after Royal Dutch Shell today completed the sale of 78 million shares.

South Africa based Woolworths’ shareholders unanimously voted in favor of the proposed takeover of the David Jones Limited, the department store and on-line retailer for $2.15 billion.

David Jones shareholders are scheduled to vote on the $4 a share offer later this month.