The ASX 200 (Index: ^AXJO) (ASX: XJO) was eventful this week. Here are four big stories you may have missed that affected the ASX 200 index:
Wesfarmers Ltd (ASX: WES) makes an unexpected bid
The old conglomerate surprised everyone by making a takeover bid for Lynas Corporation Ltd (ASX: LYC) at a price of $2.25 per share, which was a large 44.7% premium at the time. Wesfarmers planned to utilise some of its other assets to create the synergies necessary to justify the premium price.
However, Lynas promptly rejected the initial bid. Wesfarmers had attached a number of conditions to the proposal. I can understand why the bid was rejected – Wesfarmers wanted assurances that the Malaysian licence would remain, but wanted to pay the current subdued price.
Challenger Ltd (ASX: CGF) expands its relationship
The leading annuity business has grown its relationship with MS Primary to include a quota share reinsurance of US dollar denominated annuities issued in Japan.
MS Primary will provide to Challenger annual Australian and US dollar annuities amount of reinsurance at least $640 million per year for at least five years.
Its Japanese partner is increasing its equity holding of Challenger up to 15%. There was some speculation that Challenger could be a potential takeover target in time.
Coles Group Limited (ASX: COL) focuses on the online offering
Coles has big plans for its future, particularly in the online space. The supermarket business is going to build two automated warehouses that could significantly improve margins and efficiencies.
However, to really make the best of the opportunity Coles has decided to utilise leading global online business Ocado and its technology.
Even More Royal Commission Costs Westpac Banking Corp (ASX: WBC)
This week Westpac unveiled another $260 million of costs arising from customer remediation due to issues uncovered because of the Royal Commission.
The bank has already recognised costs of $118 million and $281 million and FY17 and FY18 respectively. This may not be the last we hear of remediation costs and legal charges.
