At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has fought back from a heavy decline at the open. The benchmark index is currently trading broadly flat at 7,243.6 points.
Here's what is happening on the ASX 200 on Tuesday:
APA starts bidding war for AusNet
This morning APA Group (ASX: APA) announced that it has made a takeover approach for electricity distributor AusNet Services Ltd (ASX: AST). APA has made a non-binding indicative proposal of $2.60 per share in cash and scrip. This compares to the $2.50 per share offer made by Brookfield Asset Management on Monday. Management believes it would create a listed flagship Australian company with the scale and capability to accelerate the $20 billion growth in electricity transmission infrastructure needed to support the decarbonisation of Australia's economy.
New Hope results
The New Hope Corporation Limited (ASX: NHC) share price is charging higher today after it reported a big turnaround in its full year profits. The coal miner revealed a net profit after tax (NAPT) of $79 million for FY 2021. This compares favourably to a loss of $157 million in the previous year. Strong coal prices and improved costs helped drive the profit rebound.
Domino's shares downgraded
The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is pushing higher on Tuesday despite being downgraded. According to a note out of Bell Potter, the broker has downgraded the pizza chain operator's shares to a hold rating with a $155.00 price target. While Bell Potter is very positive on its outlook, its analysts believe its valuation is stretched. The broker notes that Domino's shares trade at 40x estimated FY 2023 earnings.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Tuesday has been the Champion Iron Ltd (ASX: CIA) share price with a 4% gain. This appears to have been driven by hopes that the iron ore selloff has ended. The worst performer has been the APA share price with a 4% decline. Investors have responded poorly to its bid for AusNet.
