Search results for

Owen Cheevers, the former head of high-yield research at BMO Nesbitt Burns, has filed a $100 million arbitration claim with the National Association of Securities Dealers against his former employer, arguing that he was terminated because "he refused to acquiesce to improper demands made upon him by the firms investment bankers, to manipulate his research recommendations." The statement of claim, a copy of which was obtained by BondWeek, says that the firm's telecom group investment bankers "killed his [radio industry] research report after he declined to change his recommendations." He further alleges that his complaints about this interference to his superiors and the firm's compliance department directly resulted in his termination.

Hong Kong Hongkong Electric has launched a HK$1bn callable FRN via Barclays Bank (Hong Kong). Due July 2010 or callable after six years, it has a margin of 36.5bp over three month Hibor and an issue price of par; if not called, the margin steps up to 100bp over Hibor.

Australia Foodland Associated this week announced plans to acquire and expand. Woolworths New Zealand, agreeing to pay NZ$690m plus debt. Foodland is funding the acquisition partly through an accelerated A$295m share issue to institutions, which was due to be completed today (Friday). Foodland also plans to offer about A$30m of new shares to existing shareholders.

PT Indofood Sukses Makmur, the world's largest noodle manufacturer, this week pulled off the biggest international bond issue from Indonesia since the Asian financial crisis began in 1997. Lead managed by Credit Suisse First Boston (CSFB), the five year deal was increased from $200m to $280m on the back of particularly strong demand from private banks hungry for a well known and stable but relatively high yielding credit.

Construction group United Engineers Malaysia on Monday released the prospectus for its M$2.5bn flotation of toll road subsidiary Plus Expressways. The document confirmed that United is issuing up to 930m Plus shares, of which 300m will be offered to retail investors at an indicative price of M$2.55 each. The roadshows began last Friday and pricing is expected on June 25, with listing on July 15, a week after the debut of Maxis Communications, which set out on its three week roadshow on May 27. The two transactions combined could raise close to $1.6bn from local and international markets.

Goldman Sachs and Nomura are enjoying a positive reception for the sale of 500,000 shares in JR East, Japan's largest railway group, held by government owned Japan Railway Construction Corporation (JRCC). The deal will be priced between tomorrow (Friday) and June 19 and could raise up to ¥300bn in the first state selldown of 2002/03. The stock was yesterday afternoon (Thursday) quoted at ¥594,000, marginally above the ¥593,000 level of May 29, when premarketing began. The stock has also held up well since bookbuilding began on June 10, despite weak global markets and a directionless Tokyo bourse. JRCC hit a high of ¥615,000 earlier this week, signalling strong interest from funds seeking to weight up in the stock.

Macquarie Bank is to sell A$350m of shares in its new communications infrastructure fund, named Macquarie Communications Infrastructure Group, according to unconfirmed reports. The placement to institutions is likely to begin later this month, followed by a retail offer and a listing on the Australian Stock Exchange by mid-August.

Malaysia is putting the finishing touches on what will be the first ever international dollar bond issue that is open for purchase by Islamic investors. HSBC is lead managing the $350m-$500m offering, which will probably have a five year bullet structure. The roadshow begins today (Friday) with a lunch presentation in Hong Kong, and will proceed to the Middle East next week (Dubai, Abu Dhabi, Bahrain and Jeddah) before ending in London. Launch is expected in the week after.

Orix Jreit, the real estate trust set up by Orix Corp, fell by as much as 4.6% on its first day of trading on Wednesday, but the units had recovered to ¥508,000 by early afternoon yesterday (Thursday). Lead managers Daiwa SMBC and UBS Warburg priced the units at ¥520,000 to yield 6%. That price was at the top end of the indicated price range during what was the first global offering of a Japanese real estate investment trust (J-REIT).

EuroWeek hears that SG has the sole lead arranging mandate for a $110m acquisition financing for Vallourec, a specialist tube company. The firm has made an acquisition in the US.

Friesland Bank has dropped the dealers DG Bank and SG off its euro2 billion ($1.89 billion) debt issuance programme. It has added four names to replace them on the panel. They are Credit Suisse First Boston, Deutsche Bank, DZ Bank and Fortis Bank.

Amount: Eu500m Rating: Moody's/Fitch