Rio Tinto is quietly gaining more control of its majority-owned uranium company as the market looks elsewhere, while Extract launches a more vigorous defence of its trading halt timing. Meanwhile, the federal government’s efforts to get smaller super funds to link up has paid off, with two South Australian funds bringing $4 billion under management into one tent, however the potential for Labor to legislate retrospective changes to M&A laws could cause an awful fight with big corporates. And finally, a former sparring partner of ABC Learning founder Eddie Groves has settled out of court with the last remaining fragments of his collapsed childcare company.

Rio Tinto, Energy Resources of Australia

After spending months contemplating how to meet its capex requirements and facing speculation about a takeover from its majority shareholder Rio Tinto, uranium producerEnergy Resources of Australia has almost come up with a combination of the two. Few were surprised when ERA announced its $500 million equity raising yesterday, it’s been known for some time that the company’s plans to expand its Ranger mine in the Northern Territory, surrounded by the Kakadu National Park, needed serious cash. What did make investors pause was the enormous discount. ERA shareholders have been offered 12 shares for every 7 they already own at $1.53, after the stock finished trading on Tuesday at $3.29. Keep in mind ERA shares were above $12 in mid-January, which gives you an idea of just how hard the water handling problems have hit the company. Rio, which owns 68.4 per cent of ERA, has put its hand up for its full entitlement and because it’s acting as sub-underwriter of the issue, its stake could rise past 80 per cent. Rio’s action must indicate that it’s either confident that ERA’s fortunes at Ranger can be turned around, or the neighbouring Jabiluka deposit that it also owns could fill the void.