Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is up 1.5% to $20.86. This follows the release of a trading update this morning. The travel agent revealed that it expects to deliver record sales in FY 2024. Flight Centre CFO, Adam Campbell, advised that the company is on track to exceed the previous record total transaction value (TTV) of $23.7 billion it achieved in FY 2019. In addition, the company reaffirmed its profit guidance for the year. This will mean profit before tax (PBT) in the range of $300 million to $340 million for FY 2024. This is approximately triple FY 2023's PBT of $106 million.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

The Nine Entertainment share price is up over 1% to $1.51. This has also been driven by the release of a trading update. The entertainment and media company revealed solid performances across its businesses in FY 2024. This includes its Stan streaming service, which management "continues to expect growth in both revenue and EBITDA in FY24." In addition, Nine's Publishing business continues to benefit from the growth of digital audiences. This is expected to underpin digital subscription revenue growth in the low double digits in the second half.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is up 7% to $2.27. Investors have been buying this medical device company's shares following the release of a sales update. Polynovo advised that it had a record month of revenue in April thanks to strong growth across the business. The star of the show was its US business, which recorded monthly sales of A$6.9 million. This was an increase of 75% on the prior corresponding period. This ultimately led to Polynovo achieving record monthly group revenue of A$10.1 million, which represents a 68.6% increase on the same period last year.

QANTM Intellectual Property Ltd (ASX: QIP)

The QANTM share price is up 6.5% to $1.79. This has been driven by news that QANTM has received a takeover approach from rival IPH Ltd (ASX: IPH). It has made an unsolicited non-binding indicative proposal of 0.291 IPH shares and a fully franked special dividend of up to $0.11 cash per share. This implies an offer of $1.90 per share. This is a premium to another non-binding indicative offer that was tabled by Adamantem Capital. It offered to acquire QANTM for $1.817 per share by way of a scheme of arrangement.

The post Why Flight Centre, Nine Entertainment, Polynovo, and QANTM shares are pushing higher appeared first on The Motley Fool Australia.

Shares in IPH Ltd (ASX: IPH) are faltering this morning after the intellectual property services provider revealed a takeover bid for one of its peers. The bid, worth roughly $250 million, is being met with a 0.7% decline to $6.11 in the IPH share price.

Which competitor is this ASX 200 stock buying?

Few people have likely heard of QANTM Intellectual Property Ltd (ASX: QIP). At just shy of a $250 million market capitalisation, it's not quite in the 'big leagues' of the ASX. However, that hasn't prevented the company from receiving its fair share of interest this year, setting the share price into motion.

On 27 February, QANTM cleared the air amid media speculation that it was subject to an offer. Indeed it was. A non-binding indicative proposal from UK-based international intellectual property (IP) firm Rouse International Holdings, aka Rouse.

The interest didn't stop there either.

Two weeks later, QANTM was fielding yet another offer. This time from Adamantem Capital, an Australian private equity firm that manages around $1.4 billion worth of assets, offering $1.817 per share.

Rouse has since dropped out of the running. But a new contestant has now entered the fray, with fellow ASX-listed IPH lobbing a bid at QANTM this morning.

As per the release, IPH is putting forward a scheme of arrangement of 0.291 IPH shares and a fully franked special dividend of up to 11 cents per share in cash for each QANTM share. In simplified terms, it values QANTM at $1.90 apiece.

QANTM extended its exclusivity period with Adamantem to 15 May 2024 on Monday.

Why?

A quick look at IPH's balance sheet might give some pause for thought.

The ASX 200 stock is saddled with over $500 million in debt as of 31 December 2023, with about $126 million in cash and cash equivalents. The company is already highly leveraged at a debt-to-equity ratio of approximately 81%.

So, what's the rationale here?

IPH CEO Dr Andrew Blattman explains the thinking behind the offer, stating:

Pursuing strategic and financially accretive M&A [mergers and acquisitions] has long been a core pillar of IPH's growth strategy and we are regularly assessing a range of potential transactions across the regions in which we operate. We believe that the time is right for a combination of QANTM and IPH and we see a compelling strategic rationale to the acquisition which will support a range of benefits to shareholders, employees, and clients.

Furthermore, Blattman expressed excitement about the potential to increase the company's presence in Asia if the takeover is successful.

While the ASX 200 stock might be down, shares in QANTM are up 7.4% on today's news.

The post ASX 200 stock slips after joining takeover contest with $250 million bid appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Alumina Ltd (ASX: AWC)

The Alumina share price is up 8% to $1.27. This morning, Alumina entered into a scheme implementation deed with Alcoa Corporation. This is in relation to the recently announced proposal for Alcoa to acquire 100% of Alumina by way of a scheme of arrangement for 0.02854 Alcoa shares for each Alumina share held.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up almost 4% to $4.15. This follows news that the lithium miner has signed a new offtake agreement with Sichuan Yahua Industrial Group (Yahua) for the supply of spodumene concentrate from the Pilgangoora Operation. Yahua is a leading lithium chemicals company and one of the largest lithium hydroxide producers globally. It supplies to companies such as Tesla, LG Energy Solutions, LG Chem, and CATL.

QANTM Intellectual Property Ltd (ASX: QIP)

The QANTM share price is up 15% to $1.60. Investors have been buying the intellectual property services company's shares after it received another takeover offer. A non-binding indicative offer has been tabled from Adamantem Capital to acquire QANTM for $1.817 per share by way of a scheme of arrangement. This is higher than an offer received last month from Rouse International.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius share price is up 4% to $1.56. This follows the release of the gold miner's 10-year plan for the Mt Magnet mine. Management estimates average annual production of 150,000 ounces with an all-in sustaining cost (AISC) of $1,600 to $1,800 per ounce. Though, for the first 3.5 years it expects a lower AISC of $1,250 to $1,450 per ounce.

The post Why Alumina, Pilbara Minerals, QANTM, and Ramelius shares are charging higher appeared first on The Motley Fool Australia.

This morning, two ASX shares revealed that they have received takeover offers.

Here's what you need to know:

Prospa Group Ltd (ASX: PGL)

The Prospa share price has jumped 15% to 43 cents after the financial technology company accepted a takeover offer. Prospa has entered into a scheme implementation deed with a consortium led by the Salter Brothers Tech Fund.

Prospa's Independent Board Committee (IBC) unanimously recommends that shareholders vote in favour of the 45 cents per share cash offer. That is in the absence of a superior proposal and subject to the independent expert's report.

While a premium to recent levels, it is a long way from the ASX share's 2019 IPO price of $3.78 per share.

In other news, this morning Prospa reported a 7.4% increase in half-year revenue to $145.4 million and a profit before tax of $9 million (from a $6.3 million loss).

QANTM Intellectual Property Ltd (ASX: QIP)

The QANTM share price is up 20% to $1.38. This morning, the intellectual property services company confirmed that it has received a non-binding indicative proposal from Rouse International.

Rouse is a UK-based international intellectual property firm operating in 12 jurisdictions, with a significant emphasis on the Asia Pacific region.

Following careful consideration of the unspecified offer, the QANTM Board has agreed to Rouse's request to conduct due diligence with a view to putting forward a binding offer capable of being considered by shareholders.

Management warned that there is no certainty that a transaction capable of being considered by shareholders will eventuate.

The post 2 ASX shares rocketing up to 20% on takeover news appeared first on The Motley Fool Australia.

What did IPH announce this morning?

IPH advised that the Federal Court of Australia has made orders approving the Scheme of Arrangement under which IPH will acquire all of the shares in the capital of Xenith not already held by IPH.

The company said that the Federal Court orders were lodged with the Australian Securities and Investments Commission (ASIC) today, with the Scheme of Arrangement now legally effective.

The record date for the scheme is 8 August 2019, while the implementation date is one week later on 15 August 2019.

What's happening with the Xenith merger?

IPH had its $192 million takeover offer for rival and second-largest intellectual property law firm Xenith accepted in mid-April after acquiring a 20% strategic stake in the business.

IPH's revised proposal provided Xenith shareholders with $1.28 cash and 0.1261 IPH shares per Xenith share for a total of $2.15 per Xenith share based on IPH's 5 April 2019 closing price of $6.90 per share.

IPH is also providing a "Mix and Match" facility whereby Xenith shareholders may elect to receive 'Maximum Scrip Consideration' (i.e. 100% share-based) or 'Maximum Cash Consideration' (i.e. 100% cash) per Xenith share, subject to scale-back.

The successful takeover move came after months of back-and-forth with Xenith and its own merger target, QANTM Intellectual Property Ltd (ASX: QIP), with Xenith consistently rebuffing IPH's proposal.

How has the IPH share price performed in 2019?

At the time of writing, the IPH share price was down nearly 2% in early trade to $8.18 per share, after having hit a new 52-week high of $8.42 just prior to market close yesterday.

The IPH share price has surged higher in 2019 and is up more than 50% for the year as regulatory approval of the Xenith merger makes the company set to control a vast share – around 30% – of Australia's intellectual property law sector.

The post IPH share price on watch after Xenith takeover is approved appeared first on The Motley Fool Australia.

What's been happening for IPH in 2019?

The IPH share price is up 52.1% so far this year, despite the distraction that has been IPH's attempted merger with fellow intellectual property (IP) group, Xenith IP Group Ltd (ASX: XIP).

The early part of 2019 was dominated with the back and forward between Xenith, IPH and Xenith's own takeover target, QANTM Intellectual Property Ltd (ASX: QIP).

With Xenith now caving to IPH's relentless offers, Australia's two largest listed IP groups look set to merge, following Australian Competition and Consumer Commission (ACCC) approval for IPH's proposal to purchase Xenith for $1.28 in cash per share and 0.1261 IPH shares for every Xenith share.

The ACCC approval comes despite the fact that the new merged group would control around 30% of the Australian IP sector, which may leave IPH in the box seat to unlock further share price growth in 2019.

Will the IPH share price surge higher from here?

Having set 52-week highs on both Friday and Monday, I wouldn't be surprised to see momentum carry the IPH share price even higher this week and beyond.

Most of the ASX remains in a blackout period of sorts ahead of August reporting season, as accounting teams tally the books and leadership teams prepare for the results presentation and analyst scrutiny that comes with it.

I personally think that the IPH share price may be a touch overvalued at this point, but should it be able to generate steady revenues and capture even more market share as a combined group, the IPH share price could easily push towards the $10 barrier by the end of the year.

The IPH share price is currently trading at $8.30 per share and the company boasts a market cap of $1.64 billion – meaning it's no small fish in the domestic markets.

The post The IPH share price hits new 52-week high – can it surge higher? appeared first on The Motley Fool Australia.

What did Xenith and IPH announce this morning?

Xenith and IPH have entered into a Scheme Implementation Deed whereby IPH will acquire the shares of Xenith that it doesn't already own for a combination of cash and shares valued at $2.15 per Xenith share.

The Xenith Board unanimously supported the updated IPH proposal which will be implemented through a Scheme of Arrangement, with 'Standard Consideration' of $1.28 cash and 0.1261 IPH shares for every Xenith share, representing a total value of $2.15 per Xenith share.

The updated IPH proposal values the equity of Xenith at approximately $191 million, with an implied enterprise value of approximately $207 million.

Xenith shares have moved 0.2% higher this morning to $2.11 per share, just shy of the implied $2.15 acquisition value with all signs pointing towards a smooth completion of the deal.

Under a "mix and match" facility, Xenith shareholder may alternatively elect to receive "Maximum Scrip Consideration" (up to 100% scrip consideration) or "Maximum Cash Consideration" (up to 100% cash consideration) per Xenith share, subject to scale-back.

How did QANTM respond?

QANTM Intellectual Property Ltd (ASX: QIP) earlier confirmed it will not make a counter-proposal to match the terms of IPH's updated proposal.

This comes after months of back-and-forth between QANTM and IPH as they have tussled for the better deal with Xenith, with both transactions recently being approved by the ACCC.

QANTM was for months the preferred offer of the Xenith Board as it did not deem IPH's proposal to be superior, but that all changed on Monday when IPH bumped its offer up to the equivalent of $2.15 per Xenith share.

For those looking for a more high-risk, high-reward growth play, this top-rated stock in a booming new-age industry could be the perfect portfolio fit.

The post IPH share price climbs 1% higher as it closes in on Xenith merger appeared first on The Motley Fool Australia.

What did QANTM announce?

QANTM noted the announcement by Xenith on 8 April 2019 in which it gave the company until 5pm today to match the terms outlined in IPH's updated proposal.

QANTM has notified Zenith that it will not be submitting a revised proposal prior to that deadline.

This comes after months of back-and-forth between QANTM and IPH as they have tussled for the better deal with Xenith, with both transactions recently being approved by the ACCC.

QANTM was for months the preferred offer of the Xenith Board as it did not deem IPH's proposal to be superior, but that all changed on Monday when IPH bumped its offer up to the equivalent of $2.15 per Xenith share.

What are the terms of the IPH deal?

IPH's updated proposal will provide Xenith shareholders with $1.28 cash and 0.1261 IPH shares per Xenith share for a total of $2.15 per Xenith share based on IPH's 5 April 2019 closing price of $6.90 per share.

The Xenith share price is currently unmoved at $2.11 per share, and given the regulatory hurdles have been cleared, I'd expect to see it unchanged prior to the deal completion.

IPH is also providing a "Mix and Match" facility whereby Xenith shareholders may elect to receive 'Maximum Scrip Consideration' (i.e. 100% share-based) or 'Maximum Cash Consideration' (i.e. 100% cash) per Xenith share, subject to scale-back.

Xenith confirmed that the updated proposal constitutes a Compelling Proposal as defined in its Scheme Implementation Deed between Xenith and QANTM, with IPH now seeking to agree and sign the revised proposal with Xenith by 12 April 2019.

For those looking for a more high-risk, high-reward growth play, this top-rated stock in a booming new-age industry could be the perfect portfolio fit.

The post IPH share price climbs higher as QANTM bows out of race for Xenith appeared first on The Motley Fool Australia.

What did IPH announce to the market?

IPH believes its revised proposal provides compelling benefits for Xenith's shareholders and including $1.28 cash and 0.1261 IPH shares per Xenith share for a total of $2.15 per Xenith share based on IPH's 5 April 2019 closing price of $6.90 per share.

IPH is also providing a "Mix and Match" facility whereby Xenith shareholders may elect to receive 'Maximum Scrip Consideration' (i.e. 100% share-based) or 'Maximum Cash Consideration' (i.e. 100% cash) per Xenith share, subject to scale-back.

IPH is seeking to agree and sign the revised proposal with Xenith by 12 April 2019.

The move comes after months of back-and-forth with Xenith and its own merger target, QANTM Intellectual Property Ltd (ASX: QIP), with Xenith consistently rebuffing IPH's proposal.

The Xenith board has remained steadfast in its desire to merge with QANTM rather than accept IPH's proposal (which it deemed inferior) despite both deals recently getting the green light from the ACCC.

How did Xenith respond?

Xenith confirmed that after further engagement with IPH, it has received the updated proposal outlined above.

Management stated that the updated proposal constitutes a Compelling Proposal as defined in the Scheme Implementation Deed between Xenith and QANTM dated 26 November 2018, giving QANTM 3 business days (until 5pm Thursday) to match the terms of the IPH proposal.

The news is a big win for IPH, which has taken a 20% stake in Xenith in the hopes of gaining control of the company and preventing the QANTM merger. While its previous offers have been rejected as inferior to the QANTM deal, the new offer price and revised terms puts IPH in the box seat to acquire Xenith.

The big winners in this deal remain the Xenith shareholders, with the stock price currently trading at $1.92 per share, meaning the IPH offer represents a 12% premium to yesterday's closing price.

For investors who may have missed the boat on Xenith's capital gains, this top-rated growth stock is in the buy zone and could capitalise on a growing $22 billion industry.

The post Xenith share price on watch as IPH submits takeover bid 2.0 appeared first on The Motley Fool Australia.

What did Xenith say in the announcement?

QANTM noted the ACCC approving the proposal from IPH Limited (ASX: IPH) to acquire Xenith but said that the QANTM-Xenith merger remains compelling value. The company urged Xenith shareholders to look at the fundamentals of the QANTM proposal including the following:

• The real underlying value presented by the QANTM – Xenith merger of equals remains unchanged since the proposed merger was announced.
• Short-term share price movements are not the best measure of the value of the QANTM – Xenith merger.
• The rationale for the QANTM – Xenith merger is compelling due to the creation of a market leading group of independent IP services businesses in Australia, New Zealand and Asia.

What did the ACCC say earlier in the day?

The Xenith share price gained more than 5% yesterday on news of the ACCC approval for IPH's proposal to combine IPH with Xenith.

The ACCC's approval of the IPH proposal reduces the regulatory and execution risk of the IPH proposal, with IPH planning to use its 19.9% stake in Xenith to vote against the Xenith – QANTM merger.

Under the IPH offer, each Xenith shareholder would receive $1.28 in cash and 0.1056 IPH shares for every one Xenith shares they own. IPH also said that since the announcement of the IPH offer, the value of the Xenith – QANTM merger has "materially decreased" and the value of the IPH offer has increased to a pro-forma value of $2.01 per share.

IPH provided the below summary of its take on the value of the two offers:

Should you buy any of these shares?

This whole process has played out quite messily for all parties involved, with IPH's strategic stake in Xenith complicating the situation even further.

I'm personally not in the business of punting on mergers and acquisitions, and I'd prefer to let the dust settle and invest based on the fundamental value that's available as a shareholder in the years to come.

For investors who are willing to roll the dice and venture into new industries, this top-rated growth stock is in the buy zone and could be set to surge higher in 2019.

The post Xenith pushes ahead with QANTM merger plans despite IPH's ACCC approval appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday and finish the week on a high? Here are five things to watch:

ASX 200 expected to edge higher.

The Australian share market looks set to have a positive day of trade. According to the latest SPI futures, the ASX 200 is expected to open 6 points or 0.1% higher this morning. This follows a positive night on Wall Street which late in the session sees the Dow Jones, S&P 500, and Nasdaq all up 0.3%.

Oil prices mixed.

Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) shares will be on watch on Friday after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price has dropped 0.1% to US$59.36 a barrel and the Brent crude oil price has edged ever so slightly higher to US$67.86 a barrel. Prices remained stable despite a tweet by President Trump urging OPEC to increase production.

QANTM IP hits back at IPH.

On Thursday the ACCC said it would not oppose the proposed IPH Ltd (ASX: IPH) acquisition of fellow intellectual property services company Xenith IP Group Ltd (ASX: XIP). Last night QANTM Intellectual Property Ltd (ASX: QIP) was quick to hit back to reiterate its belief that its QANTM-Xenith merger is better and represents compelling value.

NIB upgraded.

The NIB Holdings Limited (ASX: NHF) share price could be on the move on Friday after Goldman Sachs upgraded its shares to neutral from sell. After a pullback in its share price in March, Goldman believes NIB's valuation now better reflects the risks it faces over the near term. The broker has a price target of $5.48 on its shares.

Dividends being paid.

A number of blue chip shares are paying their latest dividends today. These include regional bank Bendigo and Adelaide Bank Ltd (ASX: BEN), energy retailer Origin Energy Ltd (ASX: ORG), private hospital operator Ramsay Health Care Limited (ASX: RHC), and telco giant Telstra Corporation Ltd (ASX: TLS).

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

Four shares that have fallen more than most today are listed below. Here's why they are sinking lower:

The AusCann Group Holdings Ltd (ASX: AC8) share price has crashed 9.5% lower to 33.5 cents. This means that the medicinal cannabis company's shares have lost almost half of their value since the start of the year. I suspect the loss of a competitive edge and the lack of revenue generation is weighing on its shares. One person that sees this as a buying opportunity is acting CEO, Dr Paul MacLeman. According to a change of director's interest notice filed last night, he picked up 30,268 shares through an on-market trade on Monday.

The Bellamy's Australia Ltd (ASX: BAL) share price has dropped almost 3% to $10.89 despite there being no news out of the infant formula company. However, prior to today the Bellamy's share price was up 37% in the space of just one month. I suspect that this could mean that some investors are taking a bit of profit off the table today.

The Eclipx Group Ltd (ASX: ECX) share price is down 4% 67.2 cents. The fleet management company's shares rocketed an incredible 25% higher on Wednesday after bargain hunters swooped in following a sudden and sharp decline. It looks as though some of these investors have decided to sell shares today in order to make a quick profit. Despite yesterday's gain, the Eclipx share price has lost two-thirds of its value since the start of the year.

The QANTM Intellectual Property Ltd (ASX: QIP) share price has dropped 3.5% to $1.36 after the ACCC advised that it would not oppose the potential acquisition of Xenith IP Group Ltd (ASX: XIP) by rival intellectual property services company IPH Ltd (ASX: IPH). The competition watchdog advised that most customers it consulted "did not express concerns." QANTM IP is hoping to merge with Xenith IP.

The post Why AusCann, Bellamy's, Eclipx, and QANTM IP shares are sinking lower today appeared first on The Motley Fool Australia.

At the time of writing the IPH share price is down 0.7% to $6.88, whereas the Xenith IP share price is up 2.5% to $1.86.

What did the ACCC announce?

According to the release, although the proposed acquisition would combine two of the largest suppliers of IP services in Australia, investigations by the ACCC found that "most customers we consulted did not express concerns."

ACCC Commissioner, Roger Featherston, said: "Corporate customers who seek patent services rely on the expertise and infrastructure of large IP firms to handle their work in complex technology areas and to manage their volume of patent filings. The merged IPH-Xenith entity would have a market share of about 40 per cent of total patent filings."

Nevertheless, Mr Featherston believes that QANTM Intellectual Property Ltd (ASX: QIP) and other firms would "likely provide sufficient competitive constraint on the new entity."

He added: "Trademark services require less specialist technical expertise than patent services. We believe that other IP firms and commercial law firms provide a competitive constraint because they are a viable alternative. We also have no competition concerns regarding designs services or plant breeder's rights services."

This echoes the ACCC's view on the potential merger of QANTM and Xenith IP. Exactly one week ago the competition watchdog said it would not oppose the proposed merger, advising that it consulted a large number of market participants and "most customers did not express concerns."

IPH has welcomed the decision and believes the removal of the key regulatory condition confirms that its offer is superior to the QANTM merger.

What now?

With both the merger and acquisition now approved by the ACCC, Xenith IP shareholders have a lot to think about when they vote on the merger.

Although the Xenith IP board continues to believe the QANTM merger is in their best interests, IPH is pushing for shareholders to choose the acquisition.

In a letter to Xenith IP shareholders last week, IPH outlined the reasons it believes the acquisition is the better option.

It said: "After reviewing the reasons for the Xenith Board's response, IPH maintains that its Offer provides compelling benefits for Xenith's shareholders, its leading IP attorneys and other stakeholders, and is superior to the proposed merger between Xenith and QANTM Intellectual Property Limited (QANTM Merger). We are writing to you to ensure you are informed about the alternative IPH Offer and do not miss out on the opportunity to receive superior value for your investment. We are also encouraged by direct feedback from Xenith shareholders who say that they want the opportunity to consider the IPH Offer."

Should you invest?

I think IPH would be a good option for investors if it can successfully acquire Xenith IP. But until a deal is done, I would suggest investors keep their powder dry and watch on from the safety of the sidelines.

The post ACCC gives the thumbs up to the IPH acquisition of Xenith IP appeared first on The Motley Fool Australia.

What did the ACCC say about the merger?

The ACCC noted that the merger would combine the second and third largest suppliers of IP services in Australia into one group, with the largest currently being IPH Limited (ASX: IPH).

The ACCC's investigation focused on competition in the supply of Australian IP services such as patents, trademarks, designs and plant breeder's rights.

After consulting with a large number of market participants, the ACCC noted that most customers did not express concerns about the merger.

This is largely due to the fact that corporate customers rely on the expertise and infrastructure of large IP firms to handle their work in complex technology areas and to manage the volume of patent filings.

The ACCC estimates that the merged entity would control ~30% of the total patent filings market but believes that enough competition constraints exist in the market to keep the newly-merged entity in check.

What about IPH's acquisition proposal?

The ACCC also said it is reviewing IPH's acquisition of a 19.9% interest in Xenith and its proposal to acquire 100% of Xenith separately but is yet to make a decision on the IPH-Xenith matter.

Following Xenith's rejection of the IPH takeover proposal earlier in the week, IPH responded by saying it was "disappointed" that the Xenith Board had formed that view and that it planned to pursue the QANTM-Xenith merger.

IPH maintains that its proposal is superior to the QANTM merger and delivers "compelling benefits" for Xenith's shareholders and other stakeholders, with IPH management believing that its proposal values Xenith at $1.99 per share compared to the QANTM merger value of $1.74 per Xenith share.

So what should I be buying?

The ACCC approval is a big step forward for Xenith and QANTM in sealing the deal, while IPH will no doubt be disappointed in the decision as it tries to block the planned merger.

I think the muddied ownership and ongoing regulatory scrutiny is too messy for my liking and I'd rather add one of these top growth shares to my portfolio ahead of Xenith or IPH at the moment.

The post QANTM share price opens higher on ACCC merger approval appeared first on The Motley Fool Australia.

How did IPH respond?

IPH said it was "disappointed" that the Xenith Board formed the view that the IPH proposal is not a superior proposal to the proposed merger between Xenith and QANTM Intellectual Property Ltd (ASX: QIP).

IPH maintains that its proposal is superior to the QANTM merger and delivers "compelling benefits" for Xenith's shareholders and other stakeholders, with management believing that IPH's proposal values Xenith at $1.99 per share compared to the QANTM merger value of $1.74 per Xenith share.

The intellectual property group also requested that the Xenith Board defer the date of the scheme meeting to vote on the QANTM Merger (currently scheduled for 3 April 2019) to allow for the IPH proposal to be considered and the outcome of the pending ACCC reviews of each transaction to become known.

What did Xenith say yesterday?

The Xenith Board rejected the IPH proposal in an announcement yesterday and outlined the following as key reasons behind the decision:

• Structure & benefits to Xenith shareholders: The IPH Proposal is a fundamentally different transaction from the proposed Xenith/QANTM merger, which results in shared future control with Xenith shareholders holding 45% of the merged entity and benefitting from the 45% of earnings accretion expected to result from the merger. Xenith shareholders would also have half the board representation of the merger Xenith/QANTM entity versus IPH's outright control transaction in which Xenith shareholders would own less than 5% of the merged entity.
• Value: The IPH proposal was framed to be approximately equivalent to the implied value to Xenith shareholders arising from the Xenith/QANTM merger without an adequate control premium for the outright control proposed.
• Execution risk: The Board determined that the IPH proposal had significantly higher execution risk (i.e. ACCC clearance) than the Xenith/QANTM deal given IPH has a significantly higher market share than either entity and the merger group would be by far the largest market player.
• Employee shareholder approval: Xenith employees hold over 40% of outstanding Xenith shares and the Board is unsure if the IPH proposal would receive approval from this voting group.
• Tax implications: The significant cash component involved in the IPH proposal is unlikely to attract capital gains tax (CGT) rollover relief normally available from a pure scrip (i.e. shares for shares) consideration as proposed in the Xenith/QANTM merger.

The verdict

Based on today's response from IPH, I expect to see further back-and-forth as IPH tries to block the proposed QANTM merger, and I'd be steering clear until the ACCC approvals come through and the situation becomes more clear.

In the meantime, Fools should check out these top growth shares which could provide that extra boost to portfolio returns throughout 2019 and beyond.

The post IPH share price opens lower as it responds to Xenith takeover rejection appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they have tumbled lower:

The Appen Ltd (ASX: APX) share price is down almost 8% to $22.49 after returning from its trading halt this morning. The shares of the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence dropped lower after it successfully completed a $285 million placement at an offer price of $21.50 per share. These funds will be used to acquire industry peer Figure Eight.

The Northern Star Resources Ltd (ASX: NST) share price has tumbled 3% to $9.05. A number of Australian gold miners have dropped lower on Tuesday after investor sentiment improved and led to a fall in demand for risk off assets. The S&P/ASX All Ords Gold index is trading 2.3% lower at the time of writing.

The Retail Food Group Limited (ASX: RFG) share price has sunk a further 5% lower to 19 cents after reports claimed that the embattled food and beverage company was planning to call in administrators. This morning the company dismissed the Courier Mail reports, but this hasn't been enough to keep some shareholders from selling shares in a panic today.

The QANTM Intellectual Property Ltd (ASX: QIP) share price has fallen 7% to $1.54 after IPH Ltd (ASX: IPH) made a move for fellow intellectual property services company Xenith IP Group Ltd (ASX: XIP). QANTM IP had been intent on merging with Xenith IP, but IPH has tabled an offer that is 23.3% greater than the implied QANTM merger consideration. The market appears to believe that IPH is now in the driving seat.

The post Why Appen, Northern Star, Retail Food, & QANTM IP shares tumbled lower today appeared first on The Motley Fool Australia.

At the time of writing the IPH share price is 2.5% higher to $6.69 and the Xenith IP share price has stormed 15% higher to $1.85.

One share that hasn't followed suit is the QANTM Intellectual Property Ltd (ASX: QIP) share price which is down 3.5% to $1.60 this morning.

What happened?

This morning IPH announced that it has submitted a proposal to acquire Xenith IP for a combination of cash and shares. Under the proposal Xenith IP shareholders will receive $1.28 cash and 0.1056 IPH shares for every Xenith share, representing a total value of $1.97 per Xenith share.

This has cast doubts over the proposed Xenith IP-QANTM IP merger and appears to have put IPH in pole position.

According to the release, IPH believes its proposal provides compelling benefits for Xenith's shareholders, its leading IP attorneys, and other stakeholders. It also notes that it is 23.3% greater than the implied QANTM merger consideration.

The company has reiterated that it intends to vote against the merger of Xenith and QANTM at the upcoming scheme meeting, should it still go ahead.

Managing director and CEO, Dr Andrew Blattman, believes the combination of the two companies would be a big positive for both sets of shareholders.

He said: "We believe our proposal to Xenith provides a great opportunity to bring together two high quality IP businesses and to draw on the strengths, skills and advantages of each member firm to realise opportunities for our people, our clients and our shareholders."

What now?

I think the combination of IPH and Xenith IP would create a force in the intellectual property services industry.

This could make it worth considering an investment in IPH if the acquisition goes ahead. Though, I'd suggest investors keep their powder dry until Xenith IP and QANTM IP have responded to this development.

The post Xenith IP share price surges 15% higher after IPH outbids QANTM IP appeared first on The Motley Fool Australia.

What happened to IPH's earnings?

The company recorded a solid statutory net profit after tax (NPAT) result of $24.2 million, up 23% on prior corresponding period. Revenue was similarly up 23% to $124.9 million and up 21% on an underlying basis.

Continued strong performance from Asia saw like-for-like revenue increase 14% and earnings before interest, tax, depreciation and amortisation (EBITDA) increase 17% in the core operating segment. Underlying revenue from the company's biggest segment, Australia & NZ IP, fell 1% on an underlying basis to $66.7 million once new businesses and FX moves were stripped out.

The IPH share price slumped today despite an increased in its interim dividend from 11.5 cents per share (cps) in 1H18 to 12 cps in 1H19, franked to 50%. This may have something to do with the equity stake that IPH acquired in Xenith IP Group Ltd (ASX: XIP), announced yesterday,

Xenith currently has a friendly merger in place with QANTM Intellectual Property Ltd (ASX: QIP) and IPH openly stated today that it does not support QANTM's current proposal to acquire Xenith. I'd expect to see IPH push hard to scupper the deal, with the stock rising 2.2% in yesterday's trade after the raid.

The Xenith share price closed 5.33% lower today, while the QANTM share price ended the day 3.23% higher.

The Verdict

Overall, I can't see too many negatives in today's result. Signs of slowing growth in Australia could be cause for concern but the company's Asian business is still trundling along nicely with sustained margins across the board.

The IPH share price is up nearly 7% year-to-date and remains the biggest listed law firm on the ASX. I think today's c has more to do with a correction from yesterday's surge and potentially some behind-the-scenes trading as people reposition for the Xenith trade. While I'm not looking to invest in the legal sector, I think IPH could see strong growth in 2H19 despite some headwinds.

The post The IPH share price plummeted 4.6% today after reporting half year earnings appeared first on The Motley Fool Australia.

Here's a short recap of the Australian market:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) higher 1.00% to 5,728.30
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) higher 0.93% to 5,802.80
• AUD/USD at US 72 cents
• Gold at US$1,222.53 an ounce
• Brent Oil at US$60.24 a barrel

The best-performing ASX 200 share today was Afterpay Touch Group Ltd (ASX: APT), its share price rose 8.6%.

Shares of construction business Brickworks Limited (ASX: BKW) rose 3.5% after holding its AGM.

The share price of media business Seven West Media Ltd (ASX: SWM) made for good viewing for shareholders, it went up 7.4%.

At the red end of the ASX 200 the worst performer was Syrah Resources Ltd (ASX: SYR), its share price fell 5.6%.

The Technology One Limited (ASX: TNE) share price rose 6.8% today, recovering a lot of the lost ground last week after its report.

Shares of Harvey Norman Holdings Limited (ASX: HVN) rose 3% after revealing how its sales are going in FY19.

The share price of IPH Ltd (ASX: IPH) fell 0.9% after confirming it has launched a takeover offer for QANTM Intellectual Property Ltd (ASX: QIP) priced at $1.80 per share.

Here are some of today's top stories:

• UBS says these 5 ASX retailers are at risk of a Christmas downgrade
• Is Macquarie Group Ltd ready for a Brexit disaster?
• Why I think the 'new look' Wesfarmers Ltd (ASX:WES) is a buy
• Why Australian mortgage delinquencies could be about to rise and hurt ASX banks

The post ALL ORDINARIES finishes higher Tuesday: 8 shares you missed appeared first on The Motley Fool Australia.

Three shares that are climbing more than most at the small end of the market are listed below. Here's why they are surging higher:

The Bellevue Gold Ltd (ASX: BGL) share price has pushed 2.5% higher to 44 cents. This morning a note out of the Macquarie equities desk revealed that its analysts have initiated coverage on the gold miner with an outperform rating and 70 cents price target. Macquarie believes the high-grade resource that has been defined at its Bellevue site could be developed into a standalone project. In addition to this, it believes the project would be an attractive acquisition target for a larger player.

The Pro-Pac Packaging Limited (ASX: PPG) share price has jumped 7.5% higher to 21.5 cents on the day of the packaging company's annual general meeting. Yesterday the company's shares fell heavily after it downgraded its EBITDA guidance for FY 2019 to the range of $30 million to $33 million due to the impact that drought conditions and higher raw material input costs have had on its Flexibles packaging business. This morning the company revealed that its chief executive officer, Grant Harrod, has tendered his resignation. The market may believe a change at the top is necessary to improve the company's performance.

The QANTM Intellectual Property Ltd (ASX: QIP) share price has surged 7% higher to $1.40 after the intellectual property services company confirmed that it has received a $1.80 per share unsolicited, indicative, preliminary, conditional and non-binding acquisition proposal from IPH Ltd (ASX: IPH). However, the QANTM board believes the proposal is not in the best interests of shareholders. Instead, it continues to support the planned merger with Xenith IP Group Ltd (ASX: XIP).

The post These small cap ASX shares are surging higher on Tuesday appeared first on The Motley Fool Australia.