M2 Muscles Ahead on Merger +32% Fonterra cut its forecast milk pay-out to NZ farmers yesterday and M2 Group (MTU.AX) shares continued to rally as shareholders voted in favour of its proposed merger. Earnings to Take Centre Stage Corporations in the US and Europe are now well into announcing quarterly profits, and as we have mentioned previously during these “earnings season” periods investor focus usually shifts from economic issues back to company profitability. Given the recent sell-off and negativity in markets, we believe a solid earnings season will be crucial in reviving investor confidence. On this front companies in Australia and NZ will start to report quarterly profits in February. M2 Merger Finalised M2 Group (MTU.AX) shares are up +32% since being added to the ATM Australia portfolio on 1 September, strongly outperforming the broader market (as shown below). The outperformance has been driven by an announcement last year where Vocus Communications proposed a merger with MTU in which share...