Australian stocks: ALH surges, stocks end at new peak

MELBOURNE - Australian stocks added 0.2 per cent to close at a record high on Wednesday, lifted by gains in the big banks, while a bidding war for Australian Leisure & Hospitality sent the pub group to a new peak.

The benchmark S&P/ASX 200 rose 7.8 points, or 0.2 per cent to a new closing and intraday peak of 3,725.2.

ALH surged 11.2 per cent to A$3.57 as the takeover battle for the pub and hotel chain intensified, with the country's two major retailers -- Coles Myer and Woolworths Ltd -- fighting to win control.

Coles and Macquarie Bank unveiled a A$1.2 billion ($876 million) bid for ALH, topping a A$1.1 billion bid led by Woolworths.
"I certainly think it is not an end game. The reaction from ALH shares suggests that there could be another bid," said Craig Woolford, analyst with Commonwealth Securities.

Coles shares firmed 0.1 per cent to A$9.32 while Woolworths slipped 0.4 per cent to A$13.60. Macquarie Bank climbed 1.5 per cent to A$37.80.

Elsewhere, resources slipped after recent strong gains as oil prices eased from a record high of over $54 a barrel and copper prices pulled back.

Rio Tinto shed 3.2 per cent to A$38.00 while BHP Billiton fell 2.2 per cent to A$14.60.

The country's big four banks, which make up a fifth of the market, were firmer after investors switched out of resources.

ANZ Bank rose 1.7 per cent to A$19.66, while Commonwealth Bank added 1 per cent to A$30.75.

The bidding war for ALH also helped boost other retailers with grocer Metcash advancing 3.2 per cent to A$2.91, shortly after touching a new high of A$2.95, while Harvey Norman gained 1 per cent to A$2.96.

"Investors are probably looking outside the box. They are thinking that while ALH is up for grabs, are there other businesses that would fit in with major retailers ?," said Tony Russell, senior equities adviser at ABN AMRO Morgans.
Property group and takeover target James Fielding surged 7.4 per cent to A$3.35 following a friendly A$473 million bid from Mirvac. Mirvac added 1.1 per cent to A$4.59.

Australia's third-ranked broadcaster Ten Network Holdings gained 2.2 per cent to A$3.71 after it posted an 88 per cent jump in annual profit.