Financial Review

Yesterday FR Street Talk​

Fresh faces in Macmahon camp as spurned CIMIC retreats​

Given the success Macmahon Holdings had in seeing off CIMIC, you would think defence advisers Macquarie Capital and Ashurst would remain entrenched in the mining services company's boardroom.
But think again.
Street Talk understands that both Macquarie's bankers and Ashurst's lawyers are gone and in their place is law firm Clifford Chance and a handful of boutiques pitching for the financial adviser role.
It's a bizarre situation. Jim Walker's board at Macmahon must have been happy with the pair's work given they successfully defended the company against its biggest shareholder in what was a heated affair.​

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The defence also bought time while Macmahon stitched up a deal that it said was a "transformational" transaction with PT Amman Mineral Nusa Tenggara (AMNT), which would see the strategic investor take up to a 50 per cent stake in Macmahon. [Azure Capital was sole adviser to Macmahon on the AMNT deal]. ​

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So what else could it have been?
The $12 billion listed CIMIC is known for playing hard and Macmahon was no exception. Advised by Minter Ellison and Credit Suisse, it put a firm 14.5¢ a share bid on the table and refused to budge, declaring its offer final early in proceedings and even heading to the Takeovers Panel on one occasion.
But it looks like that is not where CIMIC's aggressive tactics and arm twisting stopped.
CIMIC knows both Macquarie and Ashurst well, having worked with them in the past. Most recently, Macquarie advised on CIMIC's bid for fellow ASX-listed contractor UGL late last year, while Ashurst advised CIMIC on its bid for ASX-listed residential developer Devine Ltd in late 2015. ​

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And all of a sudden, with CIMIC defeated, the advisers on the other side of the deal are gone?
It wouldn't be the first time that some parties involved had accused CIMIC of bullying tactics. And it also makes you think CIMIC has not given up hope of securing Macmahon just yet. ​

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