The soaring company in question is Omni Bridgeway Ltd (ASX: OBL), which provides finance for litigation and legal dispute claims.

Omni Bridgeway shares closed yesterday at 96.5 cents. During the Wednesday lunch hour, they changed hands for $1.385 apiece, up 43.5%.

Here's what's grabbing investor interest today.

ASX All Ords stock takes off on $310 million deal

The Omni Bridgeway share price is soaring after the ASX All Ords stock announced it has entered into a framework agreement with funds managed by Ares Management Corp (NYSE: ARES).

The agreement is for the establishment of a continuation fund to acquire OBL's co-investment in 150-plus investments across a range of underlying funds, along with one remaining balance sheet investment (together the Fund 9 assets).

Ares will acquire a 70% interest in Fund 9 for an upfront cash consideration of approximately $310 million. Omni Bridgeway will retain a 30% interest in Fund 9. Ares will receive a preferred return on its 70% interest in Fund 9, while OBL will retain further profit rights on the whole portfolio through its 30% interest.

The ASX All Ords stock likely stoked investor enthusiasm, noting that the upfront payment of $310 million achieves a cash multiple on invested capital (MOIC) of around 3.2 times on Omni Bridgeway-only deployed capital.

What did management say?

Commenting on the deal sending the ASX All Ords stock rocketing today, Omni Bridgeway CEO Raymond van Hulst said, "I am very pleased with this transaction as it delivers on all of our stated strategic objectives at once."

He said those strategic objections include:

• Validating the fair value of the company's book and the quality of its underwriting and valuation methodologies
• Improving the cost coverage rate
• Reducing debt to zero
• Enforcing Omni Bridgeway's position as the leading and institutional-grade funds management platform for legal assets

van Hulst added:

With 35 years of history in legal finance, Omni Bridgeway pioneered the asset class, and I am pleased we continue leading the innovation while legal assets are becoming a more mainstream asset class.

Jan-Paul Kobarg, partner at Ares Management, said:

Leveraging our scale, structuring capabilities and flexible capital base, we are pleased to invest alongside OBL in this innovative structure for the asset class…

We believe this transaction accelerates OBL's transition to a capital light funds management model in a growing asset class where it is a recognised global leader.

With today's intraday gains factored in, the ASX All Ords stock is trading right about where it was 12 months ago.

The post Guess which ASX All Ords stock just rocketed 44% appeared first on The Motley Fool Australia.

Over the past 12 months, shares in the financial institution have fallen nearly 40%. The S&P/ASX 200 Index (ASX: XJO) is up about 21% in the same time period – a gigantic 61 percentage points reversal against the beleaguered company.

Here we will take a look at some of the biggest stories that have affected the AMP share price.

The AMP share price over the last year

Controversies

AMP has been embroiled in much controversy over the last 52 weeks. It started on the tail end of the Hayne Royal Commission findings into the banking sector. AMP came in for scathing criticism for its conduct – including alleged deductions of service fees and premiums from deceased customers.

Criminal proceedings were brought against the bank for allegedly deducting fees for financial advice to customers who did not receive said advice. These were recently dropped by ASIC.

When the public's ire looked like it was fading, it rallied again when reports of sexual misconduct at senior levels of the company were made public.

Boe Pahari was promoted to Chief Executive of AMP Capital, despite the board being made aware of several allegations of sexual misconduct against him. Initially deciding not to fire anyone, the company did an about-face and removed Pahari from his role. The Chair, David Murray, also resigned in the wake of the scandal.

Pahari received a $1 million bonus for his 53 days in the role.

The reputational damage, plus serious questions over AMP's governance structures, could have caused the massive decline in the AMP share price.

Aborted takeover bid and split with AMP Capital

In October 2020, Ares Management Corp (NYSE: ARES) approached AMP with an offer to buy 100% of the company at $1.85 per share – note this is 75% higher than its current market price.

Despite drawn-out negotiations, the takeover did not eventuate. A new joint venture between the companies was proposed in February in its place. Ares would take over 60% of its private markets business for $2.3 billion. The deal fell through one month later, delivering another blow to the AMP share price. Eventually, AMP decided to demerge its private markets business with a float on the ASX.

Financial performance

During this time, which also saw the departure of its CEO one week after denying he would leave, the company underperformed financially.

At the end of July last year, AMP downgraded its profit expectations for FY20 due to a range of factors, such as market volatility and a credit downgrade.

Its half-year performance for FY21 wasn't much better. The AMP share price dropped 9% when it announced a 33% decline in net profits after tax for the 6 months ending 31 December.

Foolish takeaway

Obviously, it has not been a good 12 months for AMP shareholders. The company's share price continues to break 52-week lows, seemingly every trading day. Only yesterday it hit another low of $1.05 per share.

It's been a year to forget for many – doubly so for those invested in the AMP share price.

The post The AMP (ASX: AMP) share price is trailing the ASX 200 by 60% over the past year appeared first on The Motley Fool Australia.

However, AMP went on to emphasise that this was a preliminary proposal. Moreover, there was no guarantee a transaction would happen at all. In fact, Ares Management, in a release to the United States Securities and Exchange Commission, echoed this sentiment: "The diligence and discussions are very preliminary and there is no certainty that any transaction will occur on the proposed terms, within any particular time frame, or at all."

Is this the best option for AMP?

Allan Gray is AMP's second largest shareholder. As reported by the Australian Financial Review (AFR), Allan Gray portfolio manager Simon Mawhinney believes that the break-up value is large: "Whatever happens I think it will be split into various parts. We are not strategic holders and would sell for the right price."

Hamish Carlisle of Merlon Capital commented: "For us it's down to which approach maximises shareholder value and that could be a buyout of all of the company, sales of the parts, or a buyback and spin-off of AMP Capital,"

Alan Kohler writes in The Australian: "AMP is going to be broken up. That was always going happen as soon as the Hayne royal commission brought down the final curtain on conflicted financial advice, although the writing was on the wall after commissions were banned in 2012."

Since the moment AMP announced a company review, there have been suitors for its AMP Capital business. Enticed further by the low AMP share price, these have included market players like Macquarie Group Ltd (ASX: MQG), US equity fund KKR & Co Inc (NYSE: KKR), DEXUS Property Group (ASX: DXS), and Vicinity Centres (ASX: VCX). Even Magellan Financial Group Ltd (ASX: MFG) was mentioned as potentially interested.

Meanwhile, the market is waiting to see if any other parties will declare a hand.

The end game

Kohler continues that there is a lot of potential if AMP can incite an auction between interested parties, indicating he believes that bids could go higher. Building on this theme, the Chanticleer column in the AFR believes that AMP has now declared a foundation for future bids. The AMP share price will be in focus over the next few weeks as this dynamic situation continues to unfold.

The post AMP (ASX:AMP) share price up another 7% on top of last week's record rally appeared first on The Motley Fool Australia.

For example, in February a takeover of National Storage REIT (ASX: NSR) for $1.9 billion was called off. Just as the $8.8 billion bid for Ampol Ltd (ASX: ALD), then Caltex, was shelved in April due to coronavirus.

Nonetheless, as predicted by the Refinitiv data, the fourth quarter has already seen a definite spike in takeover activity. In fact, there were 2 major bids for large cap ASX shares within 4 days of each other. 

Large Cap ASX Shares

Manufacturing and beverages

Last Monday, Coca-Cola Amatil Ltd (ASX: CCL) acknowledged takeover talks with Coca-Cola European Partners PLC (NYSE: CCEP). However, at least 3 major shareholders have expressed discontent with the offer, even though the board have unanimously supported it. Head of equities at Pendal Group Ltd (ASX: PDL), Crispin Murray has commented:

We don't feel like this is an offer that is compelling and we don't see a lot of downside if the deal fell over…It's a good time to bid when borders are shut and there are no tourists and earnings have been downgraded. The stock could have been trading around mid-$11 – now you're only looking at a 10% premium on this bid.

His views were reflected by other major shareholders such as investment managers Martin Currie Australia, and Antares Capital. Specifically, they believe the bid is opportunistic, because the ASX share price has fallen due to coronavirus. In addition, various analysts have been critical, citing the offer as a "fair, not full" valuation of the ASX share. Regardless, most agree it will likely get away in the new year. 

Financial Services

Last week AMP Limited (ASX: AMP) announced ongoing talks with US private equity firm, Ares Management Corp Class A (NYSE: ARES). This is supposedly a $6.4 billion non-binding bid at this stage.

However, according to the Australian Financial Review (AFR) several large shareholders have questioned the logic behind the deal, believing a break up of the business is a better option. Simon Mawhinney, chief investment officer of shareholder Allan Gray didn't believe Ares Management wanted to own a bank, while Hamish Carlisle of Merlon Capital Partners, believes it would be a better option to break up the wealth manager. Meanwhile, the market is waiting to see if any other interested parties will declare their hand.

Future takeovers for ASX shares

Aside from moves by large foreign interests in the large cap arena, there is also something going on with investment funds. In particular, WAM Capital Limited (ASX: WAM) is executing 2 hostile takeovers of smaller funds.

However, of more immediate interest is another potential multi-billion dollar takeover in the S&P/ASX 200 Index (ASX: XJO). Back in September the AFR posted an article implying that the takeover of Ampol Ltd (ASX: ALD) may start again soon. Alimentation Couche-Tard Inc Class chief executive Brian Hannasch emphasised to investors in early September the "significant runway" it saw for M&A, with a focus on US and Asia. Moreover, the Canadian company has since poached Louise Warner, Ampol's former executive general manager for fuels and infrastructure.

The post Takeovers will continue to rock ASX shares appeared first on The Motley Fool Australia.

Much of this movement was due to 2 large takeovers within 4 days of each other. However, there were other reasons for individual shares performing well. 

Top moving ASX shares

Takeovers

The best performing ASX share of the week went to Coca-Cola Amatil Ltd (ASX: CCL). Its share price rose by 15.6% in response to a takeover bid by Coca-Cola European Partners PLC (NYSE: CCEP). The share blasted up by 15.63%, most of which occurred in the first trades on Monday. The deal gives the company an enterprise value of $10.8 billion and is unanimously supported by the board.

AMP Limited (ASX: AMP) was next in line with a jump across the week of 12.92%. This was due to another high value takeover bid of a large cap ASX share. In this case from US private equity firm Ares Management Corp Class A (NYSE: ARES). While there is a lot of speculation about the AMP bid, at this stage it is less advanced than that of Coca-Cola Amatil. 

Performance increases

Blackmores Limited (ASX: BKL) saw its share price jump up by 12.29% last week. This was due to a combination of a divestment, and forecast performance improvement. The company announced it would sell its Global Therapeutics business to McPherson's Limited (ASX: MCP) in a deal worth $27 million. Global Therapeutics is the market leader in Chinese herbal medicine in Australia. Moreover, the company expects to generate a growth in profits over FY21.

Canadian iron ore miner Champion Iron Ltd (ASX: CIA) saw its ASX share price rise by 10.89% over the week. This was due to solid second quarter results. The company produced record revenue, earnings before interest and taxes, net cash flow, and net income. This was due largely to the increases in iron ore prices. In fact, the ASX share saw its average sales price increase by 13.4% on the prior corresponding period. The company is also continuing with its Phase II expansion, and modifications to the train loadout. 

Resmed CDI (ASX: RMD) was the fifth best performing ASX share, closing the week up by 8.47%. Resmed saw its share price rise by 9.45% on Friday alone after the release of the company's Q1FY21 results. In comparison to the previous corresponding period, the company saw revenues increase by 10%, net operating profit increased by 27%, with a gross margin of 58.3%. In USA and Europe this was due to an increase in demand for ventilators.

The post These were the 5 best performing ASX shares last week appeared first on The Motley Fool Australia.

Last week's moves capped off a disappointing end to the month, with the ASX 200 losing close to 5% since 19 October.

The causes for this dramatic drop? There are 2 main factors in my opinion. Firstly, the number of coronavirus cases, whilst thankfully stable in Australia, has been rising on a global scale. Over in the United States, commentators are starting to call a 'third wave', as the number of cases has exploded over the past month or so. Over in Europe, France, Germany and the United Kingdom have recently gone into lockdown as well.

This situation obviously doesn't bode well for global growth and is one of the reasons I think the ASX 200 has been losing steam.

US election enters final stretch

Secondly, the US elections are just around the corner (this week in fact). Although polling is still indicating (and markets are still arguably pricing in) a loss for President Donald Trump and a Democratic win under Joe Biden, fears over a contested election or similar event have also been brewing over the past week as crunch time looms.

Markets hate uncertainty at the best of times. Thus, the prospect of severe political uncertainly and possible unrest in the world's largest economy (with the risks of the pandemic thrown in) isn't exactly a recipe for higher shares prices.

In ASX news, we also had a flurry of activity on the markets last week, despite the negative sentiment. Monday kicked things off with the news that Coca-Cola Amatil Ltd (ASX: CCL) has received a takeover offer from the European Coke bottler Coca-Cola European Partners PLC (NYSE: CCEP). This saw Amatil shares jump 16% on the day (more on that later).

Likewise, we saw embattled wealth manager AMP Limited (ASX: AMP) also receive some buyer interest from across the Pacific. AMP management confirmed on Friday that Ares Management Corp (NYSE: ARES) has issued an indicative, non-binding and (as yet) undisclosed takeover proposal for the Australian institution. Nevertheless, AMP shares ended almost 20% higher on Friday (again, more coming).

How did the markets end the week?

Not too well, as we've already flagged. The ASX 200 started the week at 6,167 points and ended up at 5,927.6 points for a week-to-week loss of 3.4%. But let's have a look at how the week panned out.

Monday started off small, with a loss of just 0.2%. But Tuesday saw the bears really step on the gas, leading the ASX 200 to a hefty 1.7% loss (its worst for the month so far). Wednesday saw something of a recovery, with a 0.1% raise, but this was quickly forgotten as Thursday brought another brutal sell-off with a 1.6% fall. Friday's more muted 0.55% fall sealed the deal for a week of heavy losses on the ASX 200.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a tough week, starting off at 6,373.7 points and finishing up at 6,113.2 points for a loss of 3.7% over the week.

Which ASX 200 shares were the biggest winners and losers?

Time for our Foolish equivalent of the old newspaper gossip pages. So stoke the fire and put the kettle on while we have a look at the biggest winners and losers for the week. As always, we'll start with the losers:

Tech and travel shares were the companies investors seemed to want to eject last week. But our week's wooden spoon goes to nickel producer Western Areas. Investors were hitting the sell button after the company downgraded its production guidance for FY2021 due to issues at one of its operations.

EML Payments wasn't too far behind with an 18.4% drop last week. No major news was out for this company, so we can only assume it got caught up with the broader tech sell-off and fell hard due to its previously strong gains over the month.

We can probably say the same for Zip Co, although investors have been cooling on this buy now, pay later company for a few weeks now.

As for Corporate Travel, I assume last week's hefty drop was due to a combination of negative sentiment from its recent annual general meeting, as well as the explosion of COVID cases around the world that we discussed earlier. That obviously isn't good news for a travel company.

With the losers out of the way, let's now check out last week's winners:

In a week of such heavy losses on the ASX 200, it is strange to see such healthy numbers in the winners' column!

The aforementioned Coca-Cola Amatil and AMP took out the gold and silver medals last week. With Amatil, prospective buyer Coca-Cola European Partners offered $12.75 per share in cash for the company, so investors were very keen to bump up the Amatil share price to within striking distance of this number.

And although AMP's takeover proposal from Ares hasn't got a price tag behind it yet, investors are very clearly excited about a possible exit door from the company — a sad day for a once-proud institution, if I may say so.

Meanwhile, Blackmores shares were on fire after last week's annual general meeting revealed the company is on course for profit growth in FY2021.

Finally, Resmed shares were in demand as the company delivered an unexpectedly strong quarterly update, thanks in no small part to strong demand for ventilators as a result of the pandemic.

What does this week look like for the ASX 200?

I'm not going to sugarcoat this: I think this week has the potential to deliver some extreme volatility to the share market in light of the US elections.

A strong result either way on Wednesday (our time) could well produce some relief-driven gains. It's possible we will get some idea of the outcome before market close on Wednesday, so put that in the calendar. However, I think investors should brace for the worst as we start the week. If the result is extremely close, we could be in for a very bruising few months, and the markets will (in my view anyway) not like this outcome at all. Whatever happens, I'm expecting a bumpy ride.

In other news, the Reserve Bank of Australia (RBA) is meeting on Tuesday for their monthly check-in. Most commentators are expecting the RBA to slash interest rates yet again to yet another all-time low, possibly 0.1%. Get ready to get even less bang for your buck from your saving account in November!

Finally, we'll be hearing from both Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) next week when the banks deliver their full-year results. It will be interesting to see what these companies have up their sleeves in terms of dividends in particular.

But before we go, here's a comprehensive look at how NAB, Westpac and all of the ASX 200 blue chips are looking as we start the week:

The post ASX 200 Weekly Wrap: ASX 200 has another shocker as US election approaches appeared first on The Motley Fool Australia.

The Australian believes the scale of the deal is $6.4 billion with an indicative share price of $1.85. 

Anatomy of the AMP takeover

Many of the chief players in this drama are part of a small circle. Ares Management has hired the ex-Credit Suisse Group (NYSE: CS) chief to run its Australian operations. Credit Suisse represents AMP along with Goldman Sachs Group Inc (NYSE: GS). Moreover, ex-CEO, now head of AMP Capital, Francesco de Ferrari, is also an ex-executive director of Credit Suisse. Additionally, The Australian has revealed that Ares Management is looking for space in Chifley Tower, near the AMP headquarters.

However, it is the final paragraph of the AMP statement that raises questions.

…AMP has received significant interest in its assets and businesses and is assessing a range of options in a considered and holistic manner, including continuing to pursue its three-year transformation strategy, with a focus on maximising shareholder value.

As the report in The Australian went on to point out, there is a chance that AMP will stay in one piece. Furthermore, the ability for it to sell off specific businesses, or embrace a total break up cannot be ruled out. While we do know that Ares Management is in the data room for due diligence purposes, we do not know if there is anybody else there. Nor do we know exactly what they are reviewing.

Since the moment AMP announced a company review, there have been suitors for its AMP Capital business. These have included market players like Macquarie Group Ltd (ASX: MQG), US equity fund KKR & Co Inc (NYSE: KKR), DEXUS Property Group (ASX: DXS), and Vicinity Centres (ASX: VCX). Even Magellan Financial Group Ltd (ASX: MFG) was mentioned as a potentially interested party.

Foolish takeaway

With the first non-binding bid now out in the open, this drama has definitely moved beyond the opening act. However, from the wording on the statement, it is clear that it is still far from over. Today, the AMP share price is trading at $1.54. Yet five years ago it was trading at $5.73 for virtually the same company, except without its life insurance business, something opposed by key institutional shareholders.

However, there has also been a lot of bad road travelled since then. The Hayne Royal Commission, underperformance, sexual harassment scandals, disarray in leadership, a revolving door on the chair position. The list goes on and has, understandably, been reflected in the falling AMP share price. While the company still may go ahead under its own steam, there is a chance that this is the final act. If so, then the board is duty bound to try to achieve the greatest value for shareholders, whether this involves a sale or breakup.

The post Investors rejoice as AMP (ASX:AMP) share price rockets 20% on takeover appeared first on The Motley Fool Australia.

Management confirmed that Ares Management Corp Class A (NYSE: ARES) lobbed a bid to the entire embattled wealth manager.

But shareholders (including myself) will need to pinch ourselves to stop from getting too excited. The takeover proposal is indicative and non-binding.

Further, AMP didn't disclose how much Ares may be willing to pay.

AMP share price in M&A spotlight

However, I know it's a decent offer as management is engaging with the suitor, even though AMP said these negotiations are "very preliminary".

Is AMP trying to set expectations low? The Australian Financial Review reported that things may not be so preliminary as AMP is allowing the bidder to look under the hood as part of the due diligence process.

The article even described both parties to be in "advanced talks" and highlighted the interconnections between senior management at AMP and Ares. It seems that many were ex-colleagues from Swiss investment house Credit Suisse.

Better to be sold than fixed?

This doesn't mean a deal is guaranteed, of course. But it certainly would be seen to improve the probability of a deal being consummated.

Even so, AMP is quick to point out that it's received "significant interest" from other parties for all or parts of its business.

The scandal-plagued AMP is undertaking a portfolio review as it tries to restructure the business. It recently sold its life insurance arm and experts believe it will need to shrink to greatness if it has any hope of restoring its former glory someday.

AMP share price is far from heyday

The AMP share price collapsed by nearly 80% over the past five years when the S&P/ASX 200 Index (Index:^AXJO) jumped close to 16%.

Others in the sector are also faring better. The Perpetual Limited (ASX: PPT) share price "only" shed 38% while the Magellan Financial Group Ltd (ASX: MFG) share price surged 155% over the period.

Foolish takeaway

The AMP share price takeover approach shouldn't surprise readers on this site. It was only two-days ago that I wrote about potential suitors running the ruler over the group.

I suspect we will be seeing more takeovers and asset sales over the coming months too. Other possible candidates include the struggling Boral Limited (ASX: BLD) share price and Suncorp Group Ltd (ASX: SUN) share price.

The post Why the AMP (ASX:AMP) share price could be set to rocket higher today appeared first on The Motley Fool Australia.