Hoyts places IPO on hold, Shares move higher: Midday Roundup

Entertainment giant Hoyts has said it has shelved plans for an IPO due to uncertainty in the current market.

Executive chairman David Kirk said plans for the $500 million float have been delayed, and that there is currently no timetable for selling the company.

“The decision was taken that this was not the optimal time to exit the business. It is still quite uncertain,” Kirk told Reuters.

QR National chief says government businesses underperform

The head of QR National, Lance Hockridge, has told Business Spectator that business ownership rarely gives businesses the best results and says he is “interested and bemused” by the current privatisation going on in New South Wales.

“What we saw on so many occasions was what I describe as ‘push comes to shove issues’, those broader policy considerations led to decisions which weren’t necessarily the best decisions taken narrowly from the commercial interests of the company,” Hockridge said.

Hockridge also said that the company is undergoing widespread reforms, and that it could increase its coal margins without harming any relationships with existing customers.

Private equity still targeting Asia

Australian private equity firms are still finding good deals with businesses that are exposed to growth in Asia, Archer Capital managing partner Peter Wiggs has told Reuters.

“I can’t see a single negative for Australian private equity from Asian growth,” he said. “There’s still more capital sloshing around globally than you can poke a stick at.”

Speaking at a private equity conference, Wiggs said there were still plenty of opportunities for businesses looking to expand through private equity.

Shares higher on Wall Street gains

The Australian sharemarket has opened higher this morning following a solid night on Wall Street, where investor optimism grew after good economic data was released.

The benchmark S&P/ASX200 index was up 47 points or 0.99% to 4854 at 12.10 AEST, while the Australian dollar actually fell to $US1.01 after the data was released.

AMP shares gained 1.13% to $5.39, while Commonwealth Bank shares rose 0.9% to $52.58. ANZ rose 0.55% to $23.73 as NAB also rose 0.91% to $25.52.

Twitter founder denies company for sale

Twitter co-founder Biz Stone has rejected rumours that the company is looking to sell, saying that reports JPMorgan was in talks to buy 10% for $US450 million are completely false.

“We have so many other things before we even think about that,” Stone told Reuters, referring to an IPO or sale. “We are not even discussing it internally. It’s too far off.”

Rumours of a Twitter IPO have been growing for months, and were exacerbated by the company announcing it raised $US200 million in a deal late last year.

Strong US data points to economic recovery

Investors grew optimistic in the United States overnight where the release of solid economic data has prompted faith in the growing recovery.

The number of Americans filing new claims for jobless benefits reached a 2.5-year low last week, according to the Labour Department. Economists had forecast claims rising to 398,000, but they actually dropped 20,000 to 368,000.

Meanwhile, the Institute for supply Management index of non-manufacturing activity grew to 59.7 – the highest point in August 2005.

Analysts are eagerly awaiting the delivery of the Government’s jobs report tomorrow, which is expected to show that nonfarm payrolls increased by 185,000.

Good reports from retailers also bolstered sentiment on Wall Street, where the Dow Jones Industrial Average rose 191.40 points, or 1.59%, at 12,258.20.