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)
Private equity firm TPG and the management team at department store Myer may place the stakes they retain in the company after its float into escrow for at least a year. The move is one of a number being considered to reassure investors. Analysts say that having the management team retain part of their stake is of more importance to investors. Myer is due to release a prospectus for the forthcoming float at the end of this month. Page 45.
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Macquarie Media Group yesterday told the Australian Securities Exchange that it is considering 'a range of structural options.' The media fund made the statement after being queried about a sudden increase in its shareprice on Wednesday morning.
Analysts say the fund is considering a number of options with its parent and largest shareholder, Macquarie Group, including a possible 'internalisation' of management, currently performed by Macquarie Group. Page 45.
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Mining company Allied Gold yesterday announced a A$59 million takeover bid for the Canadian-listed company Australian Solomons Gold. Allied's bid is almost certain to succeed, given that it has already gained a pre-bid acceptance from ASG's major shareholder, Resource Capital Funds, which has said it will contribute its entire 49 percent holding in ASG if a superior bid does not emerge. Allied executive chairman Mark Caruso said the takeover would give the company the necessary size for 'relevance' in the sector. Page 46.
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Woodside Petroleum yesterday confirmed that a well off the coast of Sierra Leone, in which Woodside has a 25 percent interest, has found oil. However, Woodside only made the announcement after statements by the project's partners led to Woodside receiving investor and media queries. Analysts say the fact that Woodside did not make an immediate announcement is an indication that the discovery is unlikely to be material to the company's shareprice. Page 47.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
John B. Fairfax, a director and major shareholder in newspaper publisher Fairfax Media, yesterday publicly called for the removal of the group's current chairman, Ron Walker, at the coming annual meeting. Mr Fairfax's statement said 'Mr Walker is well aware of significant shareholder dissatisfaction with his tenure as chairman.' There has been speculation that other major shareholders, including Lazard Asset Management and Peter Morgan's 452 Capital, are pressing for Mr Walker to leave the role. Page 19.
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Federal parliament's economics references committee yesterday issued a report on the Australian banking sector, in particular the issue of bank mergers. The report makes a number of recommendations, including that the Four Pillars policy, which prevents mergers between Australia's four major banks, be retained. The Australian Bankers' Association said some of the suggestions within the report are 'sensible,' but that it would examine the report further to 'assess whether the benefits outweigh the costs.' Page 20.
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Shareholders in beer and wine company Lion Nathan yesterday approved a A$3.5 billion takeover bid from the group's largest stakeholder, Japanese brewer Kirin.
Lion will now be merged with Kirin's local dairy products and juice business, National Foods, to create Lion Nathan National Foods. Lion chairman Geoff Ricketts told yesterday's shareholder meeting that Kirin has 'demonstrated over 10 years that they're prepared to invest in the business and employ good people.' Page 20.
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A survey by consultancy firm Mercer has found that most Australian employees are unlikely to receive pay rises next year.
Companies are continuing to focus on containing costs, with 28 percent intending to reduce fixed-reward pay budgets, with another 16 percent rejecting any salary increase. However, Mercer's Martin Turner warned companies that skills shortages in some areas continue, saying that 'the war for talent is far from over and cutting too deep in terms of salaries and people could be a mistake.' Page 23.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Troubled investment fund Babcock & Brown Infrastructure yesterday told the Australian Securities Exchange that it may suffer a further A$900 million write-down on the valuation of businesses that have a current book value of A$7 billion. The impairments would come about as the company undertakes a sales program of assets, part of a proposed rescue package which also includes a new cornerstone investor. Chairman David Hamill has acknowledged that if the rescue package does not go ahead, there is 'significant uncertainty' about the fund's future. Page 25.
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Shareholder advisory firm RiskMetrics has recommended that investors vote against investment fund Macquarie Airports' (MAp) proposal to buy out its management rights from parent financial company Macquarie Group for A$345 million. ReskMetrics has warned that the proposal could be seen by MAp's lenders as a 'change of control,' triggering extra interest costs of around A$120 million a year. RiskMetrics has called for Macquarie Group to agree to repay any additional costs caused by the buyout.
Page 25.
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A federal parliamentary inquiry has found no need to change Australia's foreign investment regime. Currently, the Foreign Investment Review Board (FIRB) assesses all foreign acquisitions of more than 15 percent in Australian companies, reporting to the Treasurer. A dissenting report was also issued, which called for the Government to ban entities controlled by foreign governments from buying 'strategic' Australian assets, however, the FIRB already has a 'national interest' test when considering investments. Page 26.
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Former debt and currency traders at St George bank are taking the lender to court over claims they did not receive adequate redundancy payouts when the bank was merged with Westpac Banking Corporation last year. The traders say that cash bonuses and awards should have been included in the redundancy calculations, which were instead based solely upon their base salary. A spokesperson for St George said that the bank 'always seeks to ensure staff get their full entitlements.' Page 26.
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THE AGE (www.theage.com.au)
Managers of telecommunications company Telstra have been accused by the Communications, Electrical and Plumbing Union of deceiving and bullying employees over a pay offer. The union says that individual managers misled employees and made statements that were 'either untrue and/or represent attempted duress and coercion. This week Telstra chief executive David Thodey emailed staff to say they were being offered a 9 percent rise over three years, along with a 2 percent 'sign-on bonus.'
Page B1.
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Administrators to solar power generation company Solar Systems say they are 'reasonably optimistic' about selling the company after receiving expressions of interest from 40 parties.
The sale could mean that a proposed A$420 million, 154 megawatt solar farm near Mildura in Victoria may still go ahead.
Administrator Stephen Longley, of PricewaterhouseCoopers, said the company 'has world-leading technology and is seen as one of the best companies for a utility-scale solar power station.'
Page B1.
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Credit ratings agency Standard & Poor's (S&P) has downgraded its outlook for two companies associated with the Victorian coal-fired power station Loy Yang B. S&P says that uncertainty surrounding the Federal Government's proposed emissions trading scheme is likely to make the refinancing of debt associated with the two companies, financing arm LoyVic and trading arm IPM Australia, more difficult. S&P say that even if the generator can pass on increased costs, 'these entities have a bucket-load of debt.' Page B1.
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The Australian Competition and Consumer Commission (ACCC) yesterday issued a draft ruling to allow the companies involved in the Gorgon liquefied natural gas project to jointly market the gas domestically. The ACCC said the decision will mean gas from the project will be supplied to West Australian (WA) consumers sooner, and 'provide a much-needed increase in gas supply for consumers.' However, the regulator has left open the possibility of later requiring separate marketing 'if the WA gas market develops further.' Page 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)
Private equity firm TPG and the management team at department store Myer may place the stakes they retain in the company after its float into escrow for at least a year. The move is one of a number being considered to reassure investors. Analysts say that having the management team retain part of their stake is of more importance to investors. Myer is due to release a prospectus for the forthcoming float at the end of this month. Page 45.
- - - -
Macquarie Media Group yesterday told the Australian Securities Exchange that it is considering 'a range of structural options.' The media fund made the statement after being queried about a sudden increase in its shareprice on Wednesday morning.
Analysts say the fund is considering a number of options with its parent and largest shareholder, Macquarie Group, including a possible 'internalisation' of management, currently performed by Macquarie Group. Page 45.
- - - -
Mining company Allied Gold yesterday announced a A$59 million takeover bid for the Canadian-listed company Australian Solomons Gold. Allied's bid is almost certain to succeed, given that it has already gained a pre-bid acceptance from ASG's major shareholder, Resource Capital Funds, which has said it will contribute its entire 49 percent holding in ASG if a superior bid does not emerge. Allied executive chairman Mark Caruso said the takeover would give the company the necessary size for 'relevance' in the sector. Page 46.
- - - -
Woodside Petroleum yesterday confirmed that a well off the coast of Sierra Leone, in which Woodside has a 25 percent interest, has found oil. However, Woodside only made the announcement after statements by the project's partners led to Woodside receiving investor and media queries. Analysts say the fact that Woodside did not make an immediate announcement is an indication that the discovery is unlikely to be material to the company's shareprice. Page 47.
- - - -
THE AUSTRALIAN (www.theaustralian.news.com.au)
John B. Fairfax, a director and major shareholder in newspaper publisher Fairfax Media, yesterday publicly called for the removal of the group's current chairman, Ron Walker, at the coming annual meeting. Mr Fairfax's statement said 'Mr Walker is well aware of significant shareholder dissatisfaction with his tenure as chairman.' There has been speculation that other major shareholders, including Lazard Asset Management and Peter Morgan's 452 Capital, are pressing for Mr Walker to leave the role. Page 19.
- - - -
Federal parliament's economics references committee yesterday issued a report on the Australian banking sector, in particular the issue of bank mergers. The report makes a number of recommendations, including that the Four Pillars policy, which prevents mergers between Australia's four major banks, be retained. The Australian Bankers' Association said some of the suggestions within the report are 'sensible,' but that it would examine the report further to 'assess whether the benefits outweigh the costs.' Page 20.
- - - -
Shareholders in beer and wine company Lion Nathan yesterday approved a A$3.5 billion takeover bid from the group's largest stakeholder, Japanese brewer Kirin.
Lion will now be merged with Kirin's local dairy products and juice business, National Foods, to create Lion Nathan National Foods. Lion chairman Geoff Ricketts told yesterday's shareholder meeting that Kirin has 'demonstrated over 10 years that they're prepared to invest in the business and employ good people.' Page 20.
- - - -
A survey by consultancy firm Mercer has found that most Australian employees are unlikely to receive pay rises next year.
Companies are continuing to focus on containing costs, with 28 percent intending to reduce fixed-reward pay budgets, with another 16 percent rejecting any salary increase. However, Mercer's Martin Turner warned companies that skills shortages in some areas continue, saying that 'the war for talent is far from over and cutting too deep in terms of salaries and people could be a mistake.' Page 23.
- - - -
THE SYDNEY MORNING HERALD (www.smh.com.au)
Troubled investment fund Babcock & Brown Infrastructure yesterday told the Australian Securities Exchange that it may suffer a further A$900 million write-down on the valuation of businesses that have a current book value of A$7 billion. The impairments would come about as the company undertakes a sales program of assets, part of a proposed rescue package which also includes a new cornerstone investor. Chairman David Hamill has acknowledged that if the rescue package does not go ahead, there is 'significant uncertainty' about the fund's future. Page 25.
- - - -
Shareholder advisory firm RiskMetrics has recommended that investors vote against investment fund Macquarie Airports' (MAp) proposal to buy out its management rights from parent financial company Macquarie Group for A$345 million. ReskMetrics has warned that the proposal could be seen by MAp's lenders as a 'change of control,' triggering extra interest costs of around A$120 million a year. RiskMetrics has called for Macquarie Group to agree to repay any additional costs caused by the buyout.
Page 25.
- - - -
A federal parliamentary inquiry has found no need to change Australia's foreign investment regime. Currently, the Foreign Investment Review Board (FIRB) assesses all foreign acquisitions of more than 15 percent in Australian companies, reporting to the Treasurer. A dissenting report was also issued, which called for the Government to ban entities controlled by foreign governments from buying 'strategic' Australian assets, however, the FIRB already has a 'national interest' test when considering investments. Page 26.
- - - -
Former debt and currency traders at St George bank are taking the lender to court over claims they did not receive adequate redundancy payouts when the bank was merged with Westpac Banking Corporation last year. The traders say that cash bonuses and awards should have been included in the redundancy calculations, which were instead based solely upon their base salary. A spokesperson for St George said that the bank 'always seeks to ensure staff get their full entitlements.' Page 26.
- - - -
THE AGE (www.theage.com.au)
Managers of telecommunications company Telstra have been accused by the Communications, Electrical and Plumbing Union of deceiving and bullying employees over a pay offer. The union says that individual managers misled employees and made statements that were 'either untrue and/or represent attempted duress and coercion. This week Telstra chief executive David Thodey emailed staff to say they were being offered a 9 percent rise over three years, along with a 2 percent 'sign-on bonus.'
Page B1.
- - - -
Administrators to solar power generation company Solar Systems say they are 'reasonably optimistic' about selling the company after receiving expressions of interest from 40 parties.
The sale could mean that a proposed A$420 million, 154 megawatt solar farm near Mildura in Victoria may still go ahead.
Administrator Stephen Longley, of PricewaterhouseCoopers, said the company 'has world-leading technology and is seen as one of the best companies for a utility-scale solar power station.'
Page B1.
- - - -
Credit ratings agency Standard & Poor's (S&P) has downgraded its outlook for two companies associated with the Victorian coal-fired power station Loy Yang B. S&P says that uncertainty surrounding the Federal Government's proposed emissions trading scheme is likely to make the refinancing of debt associated with the two companies, financing arm LoyVic and trading arm IPM Australia, more difficult. S&P say that even if the generator can pass on increased costs, 'these entities have a bucket-load of debt.' Page B1.
- - - -
The Australian Competition and Consumer Commission (ACCC) yesterday issued a draft ruling to allow the companies involved in the Gorgon liquefied natural gas project to jointly market the gas domestically. The ACCC said the decision will mean gas from the project will be supplied to West Australian (WA) consumers sooner, and 'provide a much-needed increase in gas supply for consumers.' However, the regulator has left open the possibility of later requiring separate marketing 'if the WA gas market develops further.' Page 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
