☕️ Design Defects

Good morning.

For a period, Allbirds were the athleisure shoe of choice for fin-and-tech-bros from San Fran to Sydney. However, the sneaker brand has fallen on tough times, trudging through a sales decline over the past five consecutive quarters, slashing the stock’s value by 96% since its IPO in 2021. Earlier this week Allbirds announced it would shutter up to one third of its stores and that co-founder Joey Zwillinger would step down as CEO. According to The Information, Allbirds was sitting on a pile of design mishaps created long before the CEO’s exit announcement, which featured a scramble to remove and replace fabric inside no less than 30,000 pairs of shoes.

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Market movers

Shares in Treasury Wine Estate rose 1.47% during trading yesterday to close at $12.46, after the China Ministry of Commerce released an interim draft proposal to remove tariffs on Australian wine imports. The winemaker has previously said it is “well placed” to rebuild its business in China through a series of plans which would be implemented progressively over time. Meanwhile, Jarden analysts held an 'overweight' rating on the company as it said the tariff removal probability was high and that it was not fully priced into the share price. Jarden has a price target of $12.90.

The quick sync

• Brookfield is reportedly in advanced talks to by Optus from Singapore's largest carrier, Singtel, in a deal that is expected to value Optus at between $16b and $18b. (AFR)

• Activist hedge fund, Tribeca Investment Partners, has called on Glencore to move its primary listing from London to Sydney and scrap its plans to spin off its flagship coal business. (Financial Times)

• Weebit Nano CEO is determined to ensure investors remain patient as they wait to see increased revenues. (Capital Brief)

• Institutional investors are targeting renewables projects earlier in their development cycle to maximise yields, as pressure from ESG metrics drives activity. (Capital Brief)

• US President Joe Biden is set to voice concerns about Nippon Steel’s planned acquisition of US Steel, ahead of a state visit by Japan’s Prime Minister Fumio Kishida in April. (Financial Times)

• CEO and founder of Employment Hero, Ben Thompson, fired back at Hostplus after the superannuation giant accused the founder of making "completely false" statements about its actions. (Capital Brief)

M&A

• GPG Australia has garnered interest from local investors in the auction's first round. (AFR)

• Wilsons analysts speculate Nick Scali might pursue an overseas acquisition. (The Australian)

• Wilson Asset Management remains undeterred in its investment in Cettire amid customs duties concerns. (AFR)

• The Body Shop is looking to sell its Australian operations following the collapse of its UK parent and North American branches. (The Australian)

• Qantm Intellectual Property was reportedly engaged in negotiations to convince one of its potential buyers to enhance its proposal. (The Australian)

Capital Markets

• Syrah Resources initiated a shareholder equity raise after finalising a binding offtake agreement with Korean steelmaker POSCO for its Balama project. (AFR)

• Healthscope has engaged MA Financial for potential restructuring, with ongoing management consulting assistance from FTI Consulting. (AFR)

• Liontown Resources secures a $550m loan, indicating confidence in the sector's resilience. (SMH)

• NBN Co is exploring a billion-dollar Euro bond in London with Barclays, BNP Paribas, Deutsche Bank, HSBC, and Société Générale as joint bookrunners. (AFR)

• APRA has lifted the $500m capital add-on it imposed on National Australia Bank due to risk governance concerns identified in the bank's self-assessment. (Capital Brief)

VC

• LaunchVic offers grants of up to $300,000 to angel networks for pre-seed and seed rounds in the state. (Startup Daily)

• Co-founder of Voly has launched Bazaa, securing $650,000 in angel investment within six months. (Smart Company)

People moves

• Millennium Management intends to grow its Australian team by hiring Jefferies Australia's Sholto Maconochie. (AFR)

The watercooler