Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Port and rail asset manager Babcock & Brown Infrastructure (BBI) yesterday launched a A$1.8 billion recapitalisation plan aimed at addressing the company's A$1.2 billion of debt. The rescue plan involves the sale of A$1.5 billion of shares, the disposal of almost half of the Dalrymple Bay Coal Terminal, and the sale of up to 40 percent of BBI to Canada's Brookfield Asset Management. Brookfield could gain up to three seats on the board of BBI, and have indicated they may seek management changes. Page 46.
An incident at mining company BHP Billiton's Olympic Dam project could affect the copper, gold and uranium mine's operation for up to six months. BHP yesterday said it would take two weeks to determine how the damaged shaft would affect production. Loss of production could force the miner to purchase uranium on the spot market to fulfil customer supply contracts. SafeWork South Australia classified the incident as a dangerous occurrence, however, no workers were injured. Page 46.
Roger Corbett is expected to be nominated as chairman-elect of media group Fairfax Media at next week's board meeting. Mr Corbett, the current deputy chairman, has been speaking to major investors since current chairman Ron Walker announced he would step down at next month's annual general meeting. Mr Corbett yesterday met with major shareholder Marinya Media, which had called for Mr Walker's resignation and his replacement with an outside candidate, and the two parties are believed to have resolved a number of differences. Page 47.
Major fund managers 452 Capital and BT Investment Management have written to the Federal Government, criticising legislation aimed at forcing telecommunications company Telstra to separate its retail and wholesale businesses. The Government's legislation would bar Telstra from buying further vital wireless spectrum unless it submits proposals for splitting the company, and also includes a threat to divest the company of its cable network and stake in pay television operator Foxtel. Page 47.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian dollar has broken through the US90 cent barrier,as unemployment falls and the share market rises, giving more weight to the Reserve Bank of Australia's decision to lift interest rates. The Australian dollar rose US1.28 cents to close at US90.40 cents, its highest level since August 2008. According to Paul Brennan from Citi Group, the Australian dollar's latest surge, combined with the decline of the United States economy and its weakening dollar, could realistically see the local currency reach parity. Page 19.
According to a report by the Australian Council of Super Investors, Australia's top companies are concentrating their efforts on getting through the current financial crisis rather than commencing a process of board renewal. The report found that in 2008, Australian company boards had a turnover of only 79 new appointees. Research company RiskMetrics has stated that some boards would benefit from younger talent, as directors need to look at competence rather than age. Page 19.
Westpac Banking Group has been hit with a possible bill of NZ$332 million after the New Zealand High Court ruled against the bank for avoiding tax laws through nine structured finance transactions. The ruling could have major implications for other Australian banks including National Australia Bank and the Commonwealth Bank of Australia, which have also participated in these transactions. 'We have always believed that the transactions were commercially justified and complied with the law,' said Westpac New Zealand chief executive George Frazis. Page 19.
United States oil company ConocoPhillips has plans to sell up to US$10 billion worth of assets over the next two years to service its debt burden. Conoco has various Australian assets in Queensland, the Northern Territory and off the coast of Western Australia (WA). Conoco has stated that it remains committed to its Queensland liquefied natural gas (LNG) project but would not stipulate what local assets it may sell. Conoco also owns 57 percent of the Darwin LNG plant and 51 percent of the Poseidon prospect off the WA coast. Page 20.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Free-to-air commercial television networks have called for the Federal Government to implement 'must carry' laws which would require media and content companies providing services over the proposed national broadband network to include local broadcast networks as part of their service. The networks' umbrella organisation, Free TV Australia, in a submission to a parliamentary inquiry, warns that a lack of such laws could lead to a range of potential anti-competitive behaviours. Page 1.
Melbourne-based sex store chain Sexyland has launched a A$5.2 million takeover bid for online retailer Adultshop.
Sexyland founder Angelo Abela criticised Adultshop's record, noting that its market capitalisation has fallen from A$600 million to A$3 million over the past ten years. Although Adultshop operates a joint venture with Club X, Sexyland's major rival in the sector, the Australian Comeptition and Consumer Commission is not expected to block the bid. Page 2.
Mining company Rey Resources has secured agreement to use the Derby Port in Western Australia's Kimberley region, which is capable of exporting 2 million tonnes of coal annually.
The company views the use of Derby as a starter project, as it hopes to eventually export 20 million tonnes a year from its Duchess-Paradise project, possibly through a new port at Point Torment. Rey is also currently the subject of two takeover bids, from India's Gujarat NRE and Hong Kong group Crosby Capital.
Page 3.
Oil company Shell is developing a floating liquefied natural gas (LNG) plant which will operate off the coast of Western Australia. The US$5 billion plant will process around 3.5 million tonnes of LNG a year, and at 480 metres length and 600,000 tonnes, will be the largest vessel in the world. Shell executive Malcolm Brinded said the plant, which will produce 20 percent fewer greenhouse gas emissions than an onshore project, is likely to be the first of many. Page 4.
THE AGE (www.theage.com.au)
Australian banks have admitted that funding costs are likely to remain high into 2010, as banks pay a premium of around 1 percentage point over the benchmark bond rate for funding. ''We expect overall costs to increase into 2010, driven mainly by the rising average cost of term wholesale and retail deposit costs,' said a National Australia Bank spokesperson. Ross McEwan, head of retail at the Commonwealth Bank of Australia, said wholesale funding will continue to remain high and will increase as long-term funding matures. B1.
Australia's car industry has received an assurance of security from United States car manufacturers, as the Los Angeles Police Department looks to Australia for its new police vehicle.
Science and Innovation Minister Senator Kim Carrr yesterday met with Ford and General Motors in Detroit and stated that Australia would play a major part in the future of these two companies.
Senator Carr said a Chevy Caprice modelled on the Holden Commodore is being considered by a number of US police departments. B2.
The sale of the almond assets of managed investment scheme provider Timbercorp to Olam International may proceed today if Timbercorp's banks agree to the A$128 million. However, the Supreme Court has told the banks that if the sale goes ahead, the funds from the sale will be held in trust until a court decides how the proceeds from the sale will be apportioned between secured creditors and Timbercorp's growers. The growers rejected an initial offer from the banks of A$6 million. Page B2.
-- Keywords: DIGEST AUSTRALIA BUSINESS Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Port and rail asset manager Babcock & Brown Infrastructure (BBI) yesterday launched a A$1.8 billion recapitalisation plan aimed at addressing the company's A$1.2 billion of debt. The rescue plan involves the sale of A$1.5 billion of shares, the disposal of almost half of the Dalrymple Bay Coal Terminal, and the sale of up to 40 percent of BBI to Canada's Brookfield Asset Management. Brookfield could gain up to three seats on the board of BBI, and have indicated they may seek management changes. Page 46.
An incident at mining company BHP Billiton's Olympic Dam project could affect the copper, gold and uranium mine's operation for up to six months. BHP yesterday said it would take two weeks to determine how the damaged shaft would affect production. Loss of production could force the miner to purchase uranium on the spot market to fulfil customer supply contracts. SafeWork South Australia classified the incident as a dangerous occurrence, however, no workers were injured. Page 46.
Roger Corbett is expected to be nominated as chairman-elect of media group Fairfax Media at next week's board meeting. Mr Corbett, the current deputy chairman, has been speaking to major investors since current chairman Ron Walker announced he would step down at next month's annual general meeting. Mr Corbett yesterday met with major shareholder Marinya Media, which had called for Mr Walker's resignation and his replacement with an outside candidate, and the two parties are believed to have resolved a number of differences. Page 47.
Major fund managers 452 Capital and BT Investment Management have written to the Federal Government, criticising legislation aimed at forcing telecommunications company Telstra to separate its retail and wholesale businesses. The Government's legislation would bar Telstra from buying further vital wireless spectrum unless it submits proposals for splitting the company, and also includes a threat to divest the company of its cable network and stake in pay television operator Foxtel. Page 47.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian dollar has broken through the US90 cent barrier,as unemployment falls and the share market rises, giving more weight to the Reserve Bank of Australia's decision to lift interest rates. The Australian dollar rose US1.28 cents to close at US90.40 cents, its highest level since August 2008. According to Paul Brennan from Citi Group, the Australian dollar's latest surge, combined with the decline of the United States economy and its weakening dollar, could realistically see the local currency reach parity. Page 19.
According to a report by the Australian Council of Super Investors, Australia's top companies are concentrating their efforts on getting through the current financial crisis rather than commencing a process of board renewal. The report found that in 2008, Australian company boards had a turnover of only 79 new appointees. Research company RiskMetrics has stated that some boards would benefit from younger talent, as directors need to look at competence rather than age. Page 19.
Westpac Banking Group has been hit with a possible bill of NZ$332 million after the New Zealand High Court ruled against the bank for avoiding tax laws through nine structured finance transactions. The ruling could have major implications for other Australian banks including National Australia Bank and the Commonwealth Bank of Australia, which have also participated in these transactions. 'We have always believed that the transactions were commercially justified and complied with the law,' said Westpac New Zealand chief executive George Frazis. Page 19.
United States oil company ConocoPhillips has plans to sell up to US$10 billion worth of assets over the next two years to service its debt burden. Conoco has various Australian assets in Queensland, the Northern Territory and off the coast of Western Australia (WA). Conoco has stated that it remains committed to its Queensland liquefied natural gas (LNG) project but would not stipulate what local assets it may sell. Conoco also owns 57 percent of the Darwin LNG plant and 51 percent of the Poseidon prospect off the WA coast. Page 20.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Free-to-air commercial television networks have called for the Federal Government to implement 'must carry' laws which would require media and content companies providing services over the proposed national broadband network to include local broadcast networks as part of their service. The networks' umbrella organisation, Free TV Australia, in a submission to a parliamentary inquiry, warns that a lack of such laws could lead to a range of potential anti-competitive behaviours. Page 1.
Melbourne-based sex store chain Sexyland has launched a A$5.2 million takeover bid for online retailer Adultshop.
Sexyland founder Angelo Abela criticised Adultshop's record, noting that its market capitalisation has fallen from A$600 million to A$3 million over the past ten years. Although Adultshop operates a joint venture with Club X, Sexyland's major rival in the sector, the Australian Comeptition and Consumer Commission is not expected to block the bid. Page 2.
Mining company Rey Resources has secured agreement to use the Derby Port in Western Australia's Kimberley region, which is capable of exporting 2 million tonnes of coal annually.
The company views the use of Derby as a starter project, as it hopes to eventually export 20 million tonnes a year from its Duchess-Paradise project, possibly through a new port at Point Torment. Rey is also currently the subject of two takeover bids, from India's Gujarat NRE and Hong Kong group Crosby Capital.
Page 3.
Oil company Shell is developing a floating liquefied natural gas (LNG) plant which will operate off the coast of Western Australia. The US$5 billion plant will process around 3.5 million tonnes of LNG a year, and at 480 metres length and 600,000 tonnes, will be the largest vessel in the world. Shell executive Malcolm Brinded said the plant, which will produce 20 percent fewer greenhouse gas emissions than an onshore project, is likely to be the first of many. Page 4.
THE AGE (www.theage.com.au)
Australian banks have admitted that funding costs are likely to remain high into 2010, as banks pay a premium of around 1 percentage point over the benchmark bond rate for funding. ''We expect overall costs to increase into 2010, driven mainly by the rising average cost of term wholesale and retail deposit costs,' said a National Australia Bank spokesperson. Ross McEwan, head of retail at the Commonwealth Bank of Australia, said wholesale funding will continue to remain high and will increase as long-term funding matures. B1.
Australia's car industry has received an assurance of security from United States car manufacturers, as the Los Angeles Police Department looks to Australia for its new police vehicle.
Science and Innovation Minister Senator Kim Carrr yesterday met with Ford and General Motors in Detroit and stated that Australia would play a major part in the future of these two companies.
Senator Carr said a Chevy Caprice modelled on the Holden Commodore is being considered by a number of US police departments. B2.
The sale of the almond assets of managed investment scheme provider Timbercorp to Olam International may proceed today if Timbercorp's banks agree to the A$128 million. However, the Supreme Court has told the banks that if the sale goes ahead, the funds from the sale will be held in trust until a court decides how the proceeds from the sale will be apportioned between secured creditors and Timbercorp's growers. The growers rejected an initial offer from the banks of A$6 million. Page B2.
-- Keywords: DIGEST AUSTRALIA BUSINESS Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.