Australian Market Indexes Rebound, M2 Offers Higher Bid for iiNet

Marcus Jacob
27 Apr, 2015
New York City

Australian market indexes advanced and resource and banking sector stocks led the gainers. M2 Group offered a competing and a higher bid of $1.6 billion to acquire the Internet services provider iiNet.

[R]5:30 PM Sydney – Australian market indexes advanced and resource and banking sector stocks led the gainers. M2 Group offered a competing and a higher bid of $1.6 billion to acquire the Internet services provider iiNet.[/R]

Australian market indexes opened higher and extended gains in the session in moderate trading following higher iron ore price in Shanghai.

In addition, banks led the gainers.

Australian dollar closed at 78.26 U.S. cents and in stock trading turnover slumped to 706 million shares worth $4.9 billion.

At close, the ASX 200 Index gained 49.40 or 0.8% to 5,982.70 and the broader All Ordinaries Index increased 48 to 5,954.80.

In commodities trading, gold dropped US$9 to US$1,183 an ounce and Brent crude slid 0.37 cents to close at US$64.91 a barrel.

Australian Stock Movers

Freelancer Ltd surged 7% to $1.06 after the online outsourcing servicing marketplace said it would acquire the U.S.-based online secure payment business services provider Escrow.com for $US7.5 million in cash with the help of recently completed institutional offering of about $10 million.

Hills Ltd tumbled 18.9% to 65 cents after the hardware and equipment supplier forecasted net profit in the second-half ending in March in the range of $11 million to $14 million.

M2 Group Ltd declined 4.9% to $10.90 after the communications products and utility services provider proposed to acquire internet service provider iiNet Ltd for $1.6 billion, the offer beats last month cash offer of TPG Telecom for $8.60 per share or about $1.4 billion.

Ten Network Holdings Limited dropped 1.2% to 21 cents after the television broadcaster said it is in talks with cable TV operator Foxtel controlled about a potential investment in the struggled free-to-air network.