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Australia
The government sold a 35% block of its overall 51.8% holding in Telstra Corporation, raising A$15.5 billion (US$12.1 billion). Retail investors paid A$2 for each new share, while institutional investors forked out A$2.10. The new shares closed on their November 20 debut at A$2.18; by mid-December they were trading at A$2.68. Ordinary shares were trading at A$4.11, their highest since February.
The airline Qantas accepted an A$11.1 billion buy-out offer from a private equity consortium including Australia's Macquarie Bank and Texas Pacific Group of the United States after it raised its initial offer by A$0.10 to A$5.60 per share. Shareholders were due to vote on the proposition.
Australian publishing group John Fairfax Holdings said it would buy Rural Press in a A$2.9 billion cash-and-shares deal in what was seen as a defensive move against any potential takeover. The consolidation creates a group with a combined value of A$9 billion, including debt. Rural Press has a portfolio of about 170 newspapers and magazines.
Insurance Australia Group (IAG) said it would buy the UK's Equity Insurance Group for about US$1.1 billion. The Sydney-based insurer plans to sell A$600 million worth of shares to help to fund the deal.
CHINA
China issued new rules governing the operation of foreign banks in line with its World Trade Organization commitments, which came into effect on December 11. The rules require that foreign-funded and joint-venture banks have registered capital of RMB1 billion (US$127.6 million) and RMB100 million in operating capital for each branch. And the Chinese branches of foreign banks lacking a local subsidiary can only accept individual deposits of RMB1 million or more, and have to have operating capital of RMB200 million per branch.
China Cinda Asset Management received regulatory approval for the country's first legal securitization of non-performing bank assets. The state-owned firm plans to securitize RMB4.75 billion in bad loans acquired from the Bank of China. Cinda's securities will be backed by RMB21 billion of non-performing loans made in Guangdong province.
HONG KONG
Richard Li Tzar-kai said he was committed to telecommunications firm...