M&A Saga Continues

The ASX200 started the day strong but teetered as the day wore on, ending Thursday's session only by only 4.40 points to close at 7,063.6. Nitro Software (ASX:NTO) was in the news today as the tug of war for competing for takeover bids continues. In other M&A news, Warrego Energy (ASX:WGO) received another takeover offer from the Gina Rinehart-backed Hancock Energy.

A mixed bag on the ASX from a sector standpoint, with Consumer Discretionary's leading the way as one of six sectors in the green, up by 0.59%. Energy and Tech were the worst-performing sectors, down by 1.31% and 1.06% respectively.

Core Lithium and Pinnacle Investment Management Group were the two best-performing stocks on the index, gaining 7.77% and 7.03% respectively.

Quick Singles

Core Lithium Ltd (ASX: CXO) share price increased by 7.8% today to $1.11, following the company announcing its first shipment of lithium to a Chinese customer.

In overseas news, Amazon says it plans to cut more than 18,000 jobs in an escalation of cuts and a deepening sign of a technological slump for the e-commerce giant

Microsoft says it plans to use its revolutionary AI program Chat GPT to improve its search engine Bing to take on Google

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Nitro Takeover

In a media release to the ASX, it was announced that the Takeover Panel has received an application concerning the affairs of Nitro Software Limited (ASX: NTO) from Technology Growth Capital LLC, a special purpose vehicle managed by Potentia Capital Management Pty Ltd (Potentia). The Nitro Software’s board has thrown its weight behind competing bidder Alludo’s $2.15-per-share, two-track offer.

Potentia, who owns 19.8 per cent of Nitro, has said it is open to improving its current offer of $2.00 per share but wants to undergo due diligence first. In the application filed to the ASX, Potentia has said that the Nitro board is failing to run a competitive process to ensure the best outcome for its shareholders.

✅Biggest Winners ✅

Warrego Energy Ltd (ASX: WGO) share price was up 10.2% to $0.38. This follows news that Hancock Energy, owned by Gina Rinehart, has raised its offer to acquire the energy explorer. The value of Hancock's offer has increased by 28.6% to 36 cents per share.

Alkane Resources Limited (ASX: ALK) share price was up 11.3% to $0.64. This morning, the gold miner updated its Tomingley Gold Operation estimate for fiscal year 2023. Alkane now anticipates production between 62,000 and 70,000 ounces. This is an increase from the prior range of 55,000 to 60,000 ounces. In addition, the company has lowered its expense forecast for the year downward.

❌ Biggest Losers ❌

Blackmores Ltd (ASX: BKL) shares fell 1.6% to $73.20 per share despite there being no announcement from the health supplement industry today. Notably, Citi recently issued a warning regarding the company's prospects for FY23. It believes that price rises and the cost of living problem may have a negative impact on demand for its product. Citi has assigned its shares a sell rating and a price target of $58.85.

Beach Energy Ltd (ASX: BPT) share price was $1.54, representing a decrease of 2.5% following another drop in oil prices overnight. Concerns about the expansion of the world economy led to a decline in the price of oil among traders.

Small-Cap of the Day

Investors were no doubt ecstatic today about the first drilling samples from Lindian Resources' (ASX:LIN) high-profile Kangankunde rare earth acquisition, with the share price up by 48.4% in trade today to close at $0.23

Grades reached 11.8% TREO in the first two holes of the Malawian project, which LIN refers to as "a outstanding, internationally significant rare earths project."

Additionally, the mineralization is fairly thick. The 110 m and 250 m holes from the surface were both reported to contain rare earths over their respective lengths, and both likewise ended in mineralization.

Outlook

There is no economic news expected locally this week however, it is a busy week in the United States with manufacturing, employment and payroll data all on the agenda

6th January 

• US Employment Report - est. 150k

• US Jobless Claims est. 230k

7th January

• US Non-farm payrolls - est. 200k

• US Unemployment rate - est. 3.7%

That's it from the team at ASX-News today. We hope you enjoyed our EOD report. Good night and happy investing!