Australian Investment Blog

Yesterday, more corporate activity hit the news wires sending the prices of both M2 Group and Mesoblast soaring. As I have said previously, one point I am very confident on for Australian equities is Mergers and Acquisitions (M&A) will continue strongly while interest rates are at record lows.

1. M2 Group (MTU) - is acquiring New Zealand’s third largest Internet Service Provider, Call Plus Group, for NZD$250m. The stock rallied 10.75% on the news – see chart 1.2. Mesoblast (MSB) – The American giant biotech Celgene is acquiring 15.3m MSB (4.7% of issue) for $58.5m, which equals $3.82 a share. Celgene will also have a 6-month right of first refusal to one of their adult-stem-cell product. The stock rallied 24.3% on the news – see chart 2.