The Australian share market strongly rebounded in early trade today, despite a flat lead from Wall Street. The benchmark S&P/ASX200 index was up about 2.2 per cent shortly after the market opened.
On Tuesday, the Australian share market closed at its lowest level since August last year. The benchmark S&P/ASX200 index was 2.96 per cent lower and the broader All Ordinaries index dropped 2.87 per cent.
In economics news on Wednesday, the Australian Bureau of Statistics releases data on construction work done in the March quarter. The Westpac-Melbourne Institute index of economic activity for March is due.
Company News
Diversified renewable energy company, CBD Energy Limited (
ASX:CBD), has signed a strategic co-operation agreement with Tianwei Wind and China Datang Corporation Renewable Power, two of China's largest renewable energy businesses. The agreement with the two Chinese companies covers participation in an existing CBD wind project and development of prospective new projects in Australia and China. CBD, Tianwei Wind and China Datang Renewable Power are intending to co-develop in excess of 800MW of renewable energy projects, including 600MW wind development opportunities in Australia and a minimum 200MW of wind projects in China.
Paint manufacturer Wattyl Ltd (
ASX:WYL) says it has received an indicative, non-binding and confidential proposal to acquire all of the issued capital of Wattyl by scheme of arrangement from an overseas company at a price of A$1.3 per share. Wattyl says the proposal requires a unanimous board recommendation, in the absence of a superior proposal, and is conditional on Foreign Investment Review Board and NZ Overseas Investment Office approvals. The company says it has not yet formed a view on the proposal and recommends that shareholders take no action at this time.
Brewer Foster's Group (
ASX:FGL) says it intends to spin off its beer and wine assets to create a new listed company, but no decision has been made on the structure or timing of the demerger. The demerger was subject to a detailed evaluation of the issues, costs and benefits to Fosters shareholders and ongoing assessment of prevailing economic and capital market conditions. Foster's also says today it expects earnings for the year ended 2010 to be between A$1.05 billion-A$1.08 billion, in line with consensus estimates. The company expects to recognise a non-cash impairment charge of A$1.05 billion-A$1.2 billion after tax against its wine assets in the 2010 fiscal year.
Mining consulting services provider Ammtec Limited (
ASX:AEC) has rejected the takeover offer for the company by Campbell Brothers Limited (
ASX:CPB), citing the offer is too low and fails to reflect the true value of Ammtec. Campbell Brothers offered A$3.35 per Ammtec share, with a scrip alternative of 2 Campbell Brothers shares for every 17 Ammtec shares. The company advises its shareholders not to take any action as there might be higher bids from Campbell Brothers or other party. The company today also forecasts an increase in net profit after tax to between A$11.1 to A$12.9 million.
Related CompaniesWattyl Limited
Fosters Group Limited
CBD Energy Limited
Ammtec Limited