SYDNEY, Oct 15 (Reuters) - 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)
The founder of Perth-based Coogee Resources, Gordon Martin, yesterday announced he will sell his 60 percent stake in the energy company, which owns the Montara oil project in the Timor Sea. Mr Martin said he had agreed to offload his interest after investment bank Babcock & Brown was unable to sell its 35 percent holding in Coogee, which was founded in 2005. Mr Martin said most prospective bidders 'are interested in the whole company, not 35 percent.' Analysts expect Coogee to sell for between A$600 million and A$1 billion. Page 62.
Electronics and DVD retailer JB Hi-Fi has reiterated its plans to open 24 new stores this financial year despite the economic uncertainty. Chief executive Richard Uechtritz predicted after the company's annual meeting in Melbourne yesterday that home entertainment goods would be in greater demand because consumers were likely to cut back on spending and 'be at home a lot more.' JB Hi-Fi shares, down 26 percent in the stockmarket turmoil of the past month, finished the day up A25 cents at A$11.00. Page 62.
Electronics and homewares retailer Harvey Norman has reported a 4.7 percent decline in sales at its stores in Australia for the 28 days ended October 12. Chairman Gerry Harvey said while he hoped to match last year's December quarter like-for-like sales figures this season 'at the moment that is looking very difficult.' He said retail margins remained under pressure at Harvey Norman, which issued an unusual profit warning last month. An analyst at broker Austock said despite weak sales, Harvey Norman is 'good value over the longer term.' Page 62.
Wesfarmers is confident of refinancing all its debt despite the increasingly subdued economic climate. The Perth-based conglomerate, which acquired retailer Coles for A$18 billion last year, revealed yesterday that A$1.26 billion of its debt was due to be refinanced within the next 12 months and a further A$2.2 billion by the end of 2009. But chief executive Richard Goyder said if the credit squeeze persisted, Wesfarmers, which has interests in the retail, energy and industrial sectors, may consider offloading assets. Page 63.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Prudential Regulation Authority (APRA) last weekasked some credit unions and building societies to improve their liquidity levels to shield the industry from any shock because of the global financial crisis. It is understood APRA asked the institutions to lift their liquid assets to 15 percent of total assets from 13 percent at present. Credit unions and building societies, which have 4.5 million members, largely fund their lending from household deposits. Page 39.
The Federal Government's weekend move to guarantee bank deposits and wholesale funding will not result in an upgrade in banks' credit ratings, ratings agencies said yesterday. Standard & Poor's (S&P) cited the limited life span of the scheme, which does not guarantee all of an institution's financial obligations. S&P analyst Sharad Jain said the scheme, which will be in place for three years for deposits and five years for wholesale borrowings, does not address risks such as volatility in financial markets and access to capital. Page 39.
Banking and insurance group Suncorp Metway has pulled out of talks to sell its banking and wealth management arm after receiving a solitary bid that it considered below fair value. The bid, by ANZ Bank, came just before a weekend move by the Federal Government to guarantee deposits and wholesale funding prompted Suncorp to reassess the potentially A$6 billion sale. Despite the withdrawal, Suncorp chairman John Story said the company remained 'open to proposals that are realistic and offer fair value to shareholders.' Page 41.
Australian Worldwide Exploration (AWE) is taking a fresh look at previously improbable acquisition opportunities despite the global credit crisis and falling oil prices. The oil and gas explorer's chairman, Bruce Wood, said yesterday there were now opportunities presenting themselves 'that weren't even on our radar as short as three months ago.' AWE is expected to announce in its quarterly report at the end of the month that it has more than A$200 million cash in the bank. AWE shares finished the day up 12 percent at A$2.13. Page 45.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Embattled property group City Pacific has abandoned plans to list its flagship First Mortgage Fund, blaming the recent financial market turmoil. The fund, in which investors hold about A$880 million of deposits, has since late March fallen behind on its debt repayments and halted unitholder redemptions. City Pacific also cancelled plans to resume monthly distributions this week. The company said future distribution payments 'will be dependent upon the level and timing of loan repayments to the fund.' Page 26.
Rio Tinto chief executive Tom Albanese will today release the diversified miner's quarterly report and is expected to address market doubts about Rio's decision to deflect a hostile bid from BHP Billiton. He will also tackle concerns that subdued market conditions will make it difficult for Rio to meet its target of US$7 billion (A$10.4 billion) of further asset sales by the end of the year. Meanwhile, BHP said yesterday that third-quarter economic data for key commodities importer China was likely to be weaker than previous forecasts. Page 27.
Telstra chief financial officer John Stanhope said yesterday that pay television operator Foxtel was seeing slower growth in subscriber numbers as the global financial meltdown began to hit consumer discretionary spending. Mr Stanhope's comments came after broker Credit Suisse last month lowered its revenue forecasts for Foxtel, which is 50 percent owned by Telstra and 25 percent each by News Corp and James Packer's Consolidated Media Holdings. Page 28.
Coalminer Felix Resources has expanded its takeover talks to new suitors, saying the global financial crisis had thwarted its bid to finalise a deal with the original set of bidders. It is understood resources companies that took part in the initial discussions included BHP Billiton, Rio Tinto, Anglo American, Vale and Peabody Energy. Yesterday's announcement overturned managing director Brian Flannery's statement on Friday that Felix was on the verge of concluding the auction process. Page 28.
THE AGE (www.theage.com.au)
Supermarket chain Coles is 'facing chronic underinvestment and infrastructural decay,' according to new chief executive Ian McLeod. Mr McLeod, who has been brought in by parent group Wesfarmers to turn around its A$18 billion Coles investment within five years, blamed the current problems facing the retailer on its former management. 'What we're now attempting to do is break that negative cycle that's been trapped in there for the past eight years,' Mr McLeod said yesterday. Page B3.
The global financial crisis is beginning to negatively affect business confidence, according to a recent survey by accounting firm PricewaterhouseCoopers. Over two-thirds of the 750 companies surveyed, each with a turnover between A$10-A$100 million, said they believed the shortage of credit was a potential handicap in achieving annual business targets. A further 92 percent of the companies surveyed said they had little understanding of the Federal Government's proposed emissions trading scheme. Page B3.
A court case brought against Papua New Guinea's (PNG) Mining Department by Perth-based mining company Frontier Resources has been adjourned until today. Frontier maintains that PNG Mining Minister Puka Temu has given no reason for his decision not to renew the company's mining exploration license. Frontier has spent A$3.5 million developing its Mt Kodu project, which would have potentially damaged the historic Kokoda Track, where hundreds of Australian troops died during World War II. Page B4.
Fairfax Media chief executive David Kirk yesterday lashed out at two former Fairfax editors who had recently criticised the company over its proposed staff cuts. Former editor of the Sydney Morning Herald, Eric Beecher, was described as 'a poisonous critic' by Mr Kirk. Mr Kirk also said Michael Gawenda, who edited the Age between 1997 and 2004, would implement 'many more staff cuts' if he were running the company. Mr Kirk announced 550 redundancies recently as part of the company's 'business improvement program.' Page B5. . ng COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.