☕️ In the Bag

Good morning.

Luxury player Hermès has been hit with a lawsuit over ‘unfair business practices,’ tied to its sale of iconic Birkin bags. The California claim alleges that the brand refuses to sell Birkins to just anyone, and requires potential buyers to jump through hoops which include spending thousands on other products in the hope they’ll be “deemed worthy” to buy the opulent accessory. The claim says the practice amounts to a violation of US antitrust laws.

Birkins can fetch upwards of US$100,000 ($151,000) and are considered the ultimate status symbol in the fashion world.

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Market movers

Shares in South32 fell 4.17% to close at $2.99 during trading yesterday, after the global miner withdrew its production guidance for the Australian manganese business. It said operations at the Groote Eylandt Mining Company (GEMCO) remain suspended after Tropical Cyclone Megan swept through the region earlier this week. Initial assessments have identified flooding in mining pits and significant damage to the wharf and port infrastructure. South32 holds a 60% stake in GEMCO, which is one of the largest manganese ore producing mines in the world.

The quick sync

• The US Federal Reserve has left rates unchanged at 5.25%-5.5% for a fifth consecutive meeting, and signalled that it expects to cut rates three times this year. (Capital Brief)(US Federal Reserve)(Bloomberg)

• Epic Games argues that Apple’s justification for tight control over its App Store is down to security risks doesn’t add up as the competition trial nears the end of its first week. (Capital Brief)

• Short seller Hindenburg Research has taken a short position in Equinix, alleging that the data centre firm which operates as a real estate investment trust (REIT), is selling an “AI pipe dream” and is manipulating accounting. (Hindenburg Research)(CNBC)

• Netflix urges Australian government to limit the prominence it gives free-to-air channels on smart TVs at the expense of global streamers. (Capital Brief)

• PE firm Apollo has made an US$11b offer to buy Paramount Global’s film and TV studio. (Wall Street Journal)

M&A

• Nash Capital initiates a pitch for inaugural fund, transitioning Nash Advisory into an investment shop. (AFR)

• Mater Health consults with restructuring experts amid industry challenges. (AFR)

• Private equity firm Pacific Equity Partners is reviewing its hospital business amid rising industry costs. (The Australian)

• Perseus inches closer to victory in the OreCorp takeover battle with an improved offer. (AFR)

• Partial offers have emerged in the sale process of the Incitec Pivot fertiliser unit. (The Australian)

• ASX faces new wave of buyout bids amid comeback stories, say fund managers. (AFR)

• Sonic Healthcare has acquired the Dr Risch Laboratory Group for $202m in Switzerland. (Capital Brief)

• Downer EDI has revived the sale process for its Mineral Technologies unit as the turnaround gains momentum. (AFR)

• Jarden analysts speculate on Premier Investments' strategic review outcome as results loom. (The Australian)

• Northern Star is eyeing Newmont assets as the sale process kicks off in North America. (The Australian)

Capital Markets

• Electro Optic Systems launches an equity raise amid surge in share price. (AFR)

• Toys “R” Us secures $5m in funding from C/M Capital Partners for its transformation strategy and the acquisition of Riot Art and Craft. (Capital Brief)

VC

• Immutable, along with King River Capital and Polygon Labs, partners to launch the $100m Inevitable Games Fund. (BNA)

• The Victorian Treasurer rejects calls to wind up the $2b venture capital fund amid rising debt. (AFR)

• Citro introduces a retirement-age rewards program, offering savings from over 200 retailers. (Startup Daily)

People moves

• Menarock Life Aged Care founders seek a partner for growth journey. (AFR)

• Bank of America strengthens its local presence with a new hire from Deutsche Bank, Scott Breakwell. (AFR)

• Amcor CEO Ron Delia will retire in April due to health reasons. (Capital Brief)

• Former Schroders Australia CEO Sam Hallinan joins Spire Capital as a partner and shareholder. (AFR)

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