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)
West Australia-based uranium producer Paladin Energy expects to collect A$430 million from its latest capital raising, and wants to use the proceeds for a uranium spending spree. Paladin chief executive John Borshoff says that companies have approached the producer for partnership talks, and analysts say that North America- and Kazakhstan-based parties could be of interest. This week China Guangdong Nuclear Power acquired 70 percent of Energy Metals, which is Paladin's joint venture partner in the Bigrlyi project. Page 14.
West Australia-based iron ore producer Gindalbie Metals expects to secure A$1.4 billion of debt funding via its China-based partner, Ansteel, for the Karara magnetite project. WA Minister for Environment Donna Faragher has granted final environmental approval for the project, satisfying one of the key requirements for a proposed project loan facility by China Development Bank. Gindalbie chief executive Garrett Dixon says the project only requires Federal Government approval before on-site work can begin. Page 14.
Grocery wholesaler Metcash says it will lose A$420 million of sales after its liquor supply contract with Woolworths-owned Australian Leisure & Hospitality Group (ALH) ends in 2010. Metcash chief executive Andrew Reitzer says that after 30 June Metcash-owned Australian Liquor Markets will stop supplying ALH in Queensland. The news comes one week after the wholesaler announced an A$1 billion supply deal with FoodWorks. Page 15.
Canada-based Viterra has successfully acquired South Australia-based grain company ABB Grain, after Viterra's A$1.6 billion takeover bid won 84 percent support from ABB shareholders. Viterra chief executive Mayo Schmidt says the deal was likely to trigger more consolidation in the agribusiness sector, but his company had no more acquisitions planned. When asked whether Elders rural services or the AWB-owned Landmark would be of interest to Viterra, Mr Schmidt would not comment. Page 15.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Qantas Airways says it will need to look for finance, or reduce cash reserves, in order to fund new aircraft orders totalling A$19 billion over the next decade. Chief executive Alan Joyce made the remark at the Australian and International Pilots Association's Tuesday night dinner in Sydney. Qantas reported A$181 million annual profit in fiscal 2009, and JBWere analysts have predicted that the company would benefit from an expected 5.2 percent jump in consumer confidence this month. Page 19.
Oil and gas company China National Petroleum Company has secured a A$35 billion low-interest loan from China Development Bank to finance acquisitions, and Australia's liquefied natural gas (LNG) assets are likely to be on the radar. CNPC-owned PetroChina recently agreed to buy A$50 billion of natural gas from the West Australia (WA)-based Gorgon LNG project over a period of 20 years. Analysts say that WA companies operating in conventional gas and East Cast companies on the coal-seam gas front would be of interest. Page 19.
Japan-headquartered energy company Idemitsu plans to expand its New South Wales (NSW) -based Boggabri coal mine, and gain greater access to the Port of Newcastle. Idemitsu NSW operations head Peter Wilkinson says the expansion will depend on port capacity and long-term growth from China and India. Idemitsu is close to reaching a deal with Port Waratah Coal Services that would give it more port capacity. Meanwhile, miner-led Newcastle Coal Industry Group is also expanding its port access at Newcastle. Page 20.
Commonwealth Bank of Australia (CBA) is unclear about how lenders would be affected by tighter capital rules emerging from Group of 20 talks. Chief financial officer David Craig says the Australian Prudential Regulation Authority's interpretation of international accord Basel II was conservative compared with other regulators. According to the UK Financial Services Authority's approach, CBA's ratio amounts to 11 percent. The bank defended chief executive Ralph Norris' six percent pay rise despite a seven percent slide in profit. Page 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
The decision to award the winning contract to operate the third stevedore site at Sydney's Port Botany will be prolonged due to government delays. Five bidders were told that a decision on the A$1 billion third terminal was to be announced soon but its believed that Sydney Ports has sought a 90 day extension because officials had not completed all the evaluations by the desired deadline. The bidders are Hutchison Ports, DP World, Australian International Container Terminals, AP Moller-Maersk and PSA. Page 27.
The commercial property drought has ended in Sydney after the Australian Securities Exchange building in Bridge Street sold for A$170 million to Asian investment group CLSA. This is the first major commercial property to be sold in the last two years. In 2006 German Deka sold the ASX building to failed Allco-managed Record Realty Trust for A$238 million. Receiver for the failed company Peter Hedge of Hedge & Associates was able to recoup A$170 million against the A$190 million that was lent to purchase the building. Page 27.
The Australian Taxation Office (ATO) will not impose penalties on 25 of 126 investors who have lost their court challenge over the tax treatment of their investments in retirement villages. The Federal Court heard yesterday that the other 101 investors would try reaching an agreement where they are not penalised, and if unsuccessful, Justice Richard Edmonds will hear argument from the ATO regarding penalties. The main issue revolves around the dispute of whether the timing of expenditure and claims for tax deductions were legitimate. Page 27.
Loyalty marketing expert Don Peppers has advised supermarket chain Coles to stop using the FlyBuys scheme and find a scheme that gives the supermarket chain more control over customer data or expect to lose more market share to Woolworths. 'I am biased, but I think FlyBuys has some weaknesses and I'd tell them that if they don't want to follow the course of Sainsbury's then they're going to have to get their own program,' said Mr Peppers. Sainsbury in the United Kingdom lost market share to Tesco, after Tesco launched its Clubcard scheme. Page 28.
THE AGE (www.theage.com.au)
The race to get PC users back into the lounge room has begun, as Sony Australia commences negotiations with Australian television networks to deliver their shows to television screens through the internet. The service allows consumers the opportunity to download television shows after they have been broadcasted on free-to-air networks. Sony hopes to have the service available by June. Carl Rose, managing director of Sony Australia said 'he expects all free-to-air broadcasters to offer their programming through the service.' B2.
Politicians have condemned the advertising self-regulatory system, after energy drink Cocaine got approval to advertise through a billboard in Sydney. New South Wales (NSW) politician Angela D'Amore for the electorate of Drummoyne, where the billboard advertising the drink is located has called for an investigation from the Advertising Standards Bureau. Virginia Judge, NSW Fair Trading Minister has asked marketers to think before advertising products that might offend the community. B2.
The World Bank's annual survey of business regulation, Doing Business 2010, has rated Australia as the ninth-easiest country in the world to do business. The ranking is based on measures such as getting credit, enforcing contracts, the ease of starting a business, getting construction permits and transferring properties. Singapore has once again ranked number one as the easiest country to do business, New Zealand came in second followed by Hong Kong, the United States, Britain and Denmark. B 3.
Cochlear, maker of the bionic ear, has secured an exclusive licence agreement with US company Otologics to use a new implant technology that will allow Cochlear to develop an implant with no external parts. Cochlear has paid Otologics A$29 million for the patent rights and joint development activities. Chris Roberts, chief executive at Cochlear, said the latest move will allow the company to reach its long-term goal of developing an implant that was not visible. Cochlear shares lost 2.5 percent to close at A$60.40. B3. -- 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)
West Australia-based uranium producer Paladin Energy expects to collect A$430 million from its latest capital raising, and wants to use the proceeds for a uranium spending spree. Paladin chief executive John Borshoff says that companies have approached the producer for partnership talks, and analysts say that North America- and Kazakhstan-based parties could be of interest. This week China Guangdong Nuclear Power acquired 70 percent of Energy Metals, which is Paladin's joint venture partner in the Bigrlyi project. Page 14.
West Australia-based iron ore producer Gindalbie Metals expects to secure A$1.4 billion of debt funding via its China-based partner, Ansteel, for the Karara magnetite project. WA Minister for Environment Donna Faragher has granted final environmental approval for the project, satisfying one of the key requirements for a proposed project loan facility by China Development Bank. Gindalbie chief executive Garrett Dixon says the project only requires Federal Government approval before on-site work can begin. Page 14.
Grocery wholesaler Metcash says it will lose A$420 million of sales after its liquor supply contract with Woolworths-owned Australian Leisure & Hospitality Group (ALH) ends in 2010. Metcash chief executive Andrew Reitzer says that after 30 June Metcash-owned Australian Liquor Markets will stop supplying ALH in Queensland. The news comes one week after the wholesaler announced an A$1 billion supply deal with FoodWorks. Page 15.
Canada-based Viterra has successfully acquired South Australia-based grain company ABB Grain, after Viterra's A$1.6 billion takeover bid won 84 percent support from ABB shareholders. Viterra chief executive Mayo Schmidt says the deal was likely to trigger more consolidation in the agribusiness sector, but his company had no more acquisitions planned. When asked whether Elders rural services or the AWB-owned Landmark would be of interest to Viterra, Mr Schmidt would not comment. Page 15.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Qantas Airways says it will need to look for finance, or reduce cash reserves, in order to fund new aircraft orders totalling A$19 billion over the next decade. Chief executive Alan Joyce made the remark at the Australian and International Pilots Association's Tuesday night dinner in Sydney. Qantas reported A$181 million annual profit in fiscal 2009, and JBWere analysts have predicted that the company would benefit from an expected 5.2 percent jump in consumer confidence this month. Page 19.
Oil and gas company China National Petroleum Company has secured a A$35 billion low-interest loan from China Development Bank to finance acquisitions, and Australia's liquefied natural gas (LNG) assets are likely to be on the radar. CNPC-owned PetroChina recently agreed to buy A$50 billion of natural gas from the West Australia (WA)-based Gorgon LNG project over a period of 20 years. Analysts say that WA companies operating in conventional gas and East Cast companies on the coal-seam gas front would be of interest. Page 19.
Japan-headquartered energy company Idemitsu plans to expand its New South Wales (NSW) -based Boggabri coal mine, and gain greater access to the Port of Newcastle. Idemitsu NSW operations head Peter Wilkinson says the expansion will depend on port capacity and long-term growth from China and India. Idemitsu is close to reaching a deal with Port Waratah Coal Services that would give it more port capacity. Meanwhile, miner-led Newcastle Coal Industry Group is also expanding its port access at Newcastle. Page 20.
Commonwealth Bank of Australia (CBA) is unclear about how lenders would be affected by tighter capital rules emerging from Group of 20 talks. Chief financial officer David Craig says the Australian Prudential Regulation Authority's interpretation of international accord Basel II was conservative compared with other regulators. According to the UK Financial Services Authority's approach, CBA's ratio amounts to 11 percent. The bank defended chief executive Ralph Norris' six percent pay rise despite a seven percent slide in profit. Page 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
The decision to award the winning contract to operate the third stevedore site at Sydney's Port Botany will be prolonged due to government delays. Five bidders were told that a decision on the A$1 billion third terminal was to be announced soon but its believed that Sydney Ports has sought a 90 day extension because officials had not completed all the evaluations by the desired deadline. The bidders are Hutchison Ports, DP World, Australian International Container Terminals, AP Moller-Maersk and PSA. Page 27.
The commercial property drought has ended in Sydney after the Australian Securities Exchange building in Bridge Street sold for A$170 million to Asian investment group CLSA. This is the first major commercial property to be sold in the last two years. In 2006 German Deka sold the ASX building to failed Allco-managed Record Realty Trust for A$238 million. Receiver for the failed company Peter Hedge of Hedge & Associates was able to recoup A$170 million against the A$190 million that was lent to purchase the building. Page 27.
The Australian Taxation Office (ATO) will not impose penalties on 25 of 126 investors who have lost their court challenge over the tax treatment of their investments in retirement villages. The Federal Court heard yesterday that the other 101 investors would try reaching an agreement where they are not penalised, and if unsuccessful, Justice Richard Edmonds will hear argument from the ATO regarding penalties. The main issue revolves around the dispute of whether the timing of expenditure and claims for tax deductions were legitimate. Page 27.
Loyalty marketing expert Don Peppers has advised supermarket chain Coles to stop using the FlyBuys scheme and find a scheme that gives the supermarket chain more control over customer data or expect to lose more market share to Woolworths. 'I am biased, but I think FlyBuys has some weaknesses and I'd tell them that if they don't want to follow the course of Sainsbury's then they're going to have to get their own program,' said Mr Peppers. Sainsbury in the United Kingdom lost market share to Tesco, after Tesco launched its Clubcard scheme. Page 28.
THE AGE (www.theage.com.au)
The race to get PC users back into the lounge room has begun, as Sony Australia commences negotiations with Australian television networks to deliver their shows to television screens through the internet. The service allows consumers the opportunity to download television shows after they have been broadcasted on free-to-air networks. Sony hopes to have the service available by June. Carl Rose, managing director of Sony Australia said 'he expects all free-to-air broadcasters to offer their programming through the service.' B2.
Politicians have condemned the advertising self-regulatory system, after energy drink Cocaine got approval to advertise through a billboard in Sydney. New South Wales (NSW) politician Angela D'Amore for the electorate of Drummoyne, where the billboard advertising the drink is located has called for an investigation from the Advertising Standards Bureau. Virginia Judge, NSW Fair Trading Minister has asked marketers to think before advertising products that might offend the community. B2.
The World Bank's annual survey of business regulation, Doing Business 2010, has rated Australia as the ninth-easiest country in the world to do business. The ranking is based on measures such as getting credit, enforcing contracts, the ease of starting a business, getting construction permits and transferring properties. Singapore has once again ranked number one as the easiest country to do business, New Zealand came in second followed by Hong Kong, the United States, Britain and Denmark. B 3.
Cochlear, maker of the bionic ear, has secured an exclusive licence agreement with US company Otologics to use a new implant technology that will allow Cochlear to develop an implant with no external parts. Cochlear has paid Otologics A$29 million for the patent rights and joint development activities. Chris Roberts, chief executive at Cochlear, said the latest move will allow the company to reach its long-term goal of developing an implant that was not visible. Cochlear shares lost 2.5 percent to close at A$60.40. B3. -- 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.
© 2009 AFX News
