☕️Buffet’s Backing

Warren Buffet told Fraser to keep going with reorganisation.

Good morning.

Citigroup’s aggressive business-wide overhaul reached new extremes last week, when CEO Jane Fraser announced that the bank would have to layoff 20,000 employees, trimming 10% of its workforce. However, dramatic as the cuts may seem, billionaire investor Warren Buffet told Fraser to push ahead with the reorganisation during a private lunch meeting.

If the Oracle of Omaha has given his blessing, who is Fraser to question it?

ASX as at market close. Commodities and crypto in USD.

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Market movers

Mesoblast shares soared 19.8% during trading on Friday, following news that the US Food and Drug Administration approved MSB’s treatment for children with a rare heart condition. Despite the surge, MSB continues to suffer a months-long share price lull after a failed drug approval application in 2023.

The quick sync

  • Andrew Forrest shutters the WA nickel mines he bought for $760m six months ago, amid nickel supply glut. (AFR)

  • Seven, Nine and News Corp consider forming alliance to bargain with AI companies for content compensation. (Capital Brief)

  • Canva is close to completing a share sale that could reach $2.2b, valuing the company at around $39.4b. (Bloomberg)

  • Blackbird-backed Kiki draws ire after pivoting from a subletting platform to targeting ‘corporate girlies’ with an NY based girls club. (Capital Brief)

  • Musk denies claims his AI startup xAI has secured $758m in funding commitments from investors, amounting to half of the $1.5b in funding he seeks. (Reuters)

  • Sydney-based Leonardo.Ai has lofty goals to compete with OpenAI and Midjourney through its high precision video and image AI offering. (Capital Brief)

  • NAB exec says bank is shifting its focus to young savers as lenders compete for savings accounts, despite the ACCC calling for better transparency in the sector. (AFR)

  • OpenAI’s Sam Altman is in talks with middle eastern backers as he seeks funding for a new AI chipmaking venture. (Financial Times)

  • Investors keep a weathered eye on Panthera Finance as it endures an investigation by Victoria’s consumer affairs regulator. (AFR)

Trading floor

M&A

  • GIP’s Australian unit is in talks with Goldman Sachs for $5b stake in gas distributor, Jemena. (AFR)

  • BHP seeks wind and solar energy for Pilbara iron ore operations in decarbonisation move. (AFR)

  • Louis Dreyfus makes a $105m offer for full control of Australia's Namoi Cotton. (BNA)

  • ReadyTech eyes acquisition of two trade players in the education software sector. (AFR)

  • Mayur Resources to sell 51% of Orokolo Bay project to Indonesian group PT SEA First Nickel Industry. (AFR)

  • Australian private equity firms focus on asset sales amid fundraising pressures. (The Australian)

Capital Markets

  • Shares in coal miner Whitehaven surged by 6% to $8.285, reaching their highest level in a year. (Capital Brief)

VC

  • None

People moves

  • Genea, owned by Liverpool Partners, loses four key fertility specialists to rival clinics. (AFR)

☝️ Know about a deal or people move we don’t? Hit reply.

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