Good evening,

Got a deal not going to plan? You’re not the only one.

In a departure from the usual crafty closed-door negotiations, bankers have been keeping boards and buyers separate, leading to a steady stream of stalemates.

With the lockdown extended in NSW and widespread border closures, getting two parties together to nut out a deal is not as easy as the good ol’ days of 2019, but with legal mediations and court cases able to take place virtually, surely some creative thinking could solve this problem.

The most popular defence strategy at the moment is to say ‘no’ to the first offer and block access to the data room. If they come back with a second offer, limited due diligence could be granted.

This has played out with Spark Infrastructure, IRESS, Tabcorp’s wagering business and more.

You can feel the frustration.

Elsewhere; Quadrant-backed Probe CX has hired Morgan Stanley to “evaluate strategic alternatives” for the business; Huon Aquaculture’s auction is increasingly morphing into a capital raising and Z Energy gets on the front foot.

Happy reading,

Anthony Macdonald and Yolanda Redrup
Street Talk Editors