Good evening,

We all knew Regal Funds was crazy/brave – and it turns out its parent Regal Partners is also a bit crazy/brave in the boardroom.

How else to describe a late and audacious bid for Perpetual Ltd?

It is a deal that was impossible and inconceivable only six months ago.

No one would have tipped Phil King’s hedge fund in Sydney’s Gateway Building to try to take over Perpetual. It is still hard to believe it is happening.

The bid cemented the huge change in Australia’s equity capital markets. Although Regal has been the biggest commission payer on the street for a few years, making it the No.1 client for brokers, its new listing (via VGI Partners) and strong share price gives it currency to become a serious player in corporate Australia.

The bid started with Baring Private Equity Asia (now run by EQT), which has a penchant for corporate trust businesses. It found Regal with the help of Barrenjoey Capital’s bankers, one of whom (Matt Hanning) worked for Baring before joining Barrenjoey as a founding partner.

The bid, at an 11 per cent premium to the last close, was dead on arrival at Perpetual HQ on Wednesday night. But the fact they launched it anyway shows there’s very likely more to play out yet.

In Street Talk, we take a look at Medibank Private, and have spotted Allegro Funds’ Team Global Express (nee Toll Global Express) readying for a potential acquisition.

Happy reading,

Anthony Macdonald, Sarah Thompson and Kanika Sood
Street Talk editors