SYDNEY, Oct 27 (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)
Embattled childcare centre operator ABC Learning Centres <ABS.AX> has ordered its centres to offer employment to casual staff hired from childcare recruitment firm 123 Careers after pulling out of a A$70 million agreement to buy 123 Careers. However, the recruitment firm late on Friday won a temporary injunction from the Supreme Court of Queensland, preventing ABC Learning from employing 123 Careers' staff. Don Jones, director of 123 Careers, said yesterday the firm would not return the A$40 million ABC had paid as part of the aborted deal. Page 18.
British-based energy company BG Group is set to announce a A$5 billion friendly takeover offer for Queensland Gas Company. The bid, expected to be unveiled today or tomorrow, will offer about A$5.45 per QGC share, significantly higher than the A$3.20 at which QGC shares last traded. As part of the transaction, QGC's biggest shareholder, energy utility AGL <AGK.AX>, will offload its 25 percent stake in QGC to BG while the British group will reciprocate by agreeing to supply gas to AGL. Page 18.
Telstra is facing pressure from unions over its aggressive strategy in relation to the tender process for the A$4.7 billion national broadband network tender. The Australian Council of Trade Unions (ACTU) says the telecommunications company's 'combative' approach has placed 'the long-term interest of shareholders at risk'. The ACTU, which has called for a 'truly collaborative and co-operative' approach by Telstra, will this week hold meetings over the issue with industry superannuation funds that hold Telstra shares. Page 18.
Building products group Boral increased government spending on infrastructure to offset the slowdown in private sector spending. Chief executive Rod Pearse told Boral's annual meeting on Friday that the Federal Government's A$20 billion Building Australia Fund would help drive infrastructure spending. Mr Pearse, who also flagged significant savings from using alternative fuels, said the use of compressed natural gas agitators would 'reduce emissions and reduce costs'. Page 19.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Commonwealth Bank of Australia has flagged a rigorous A$370 million cost-cutting program that would involve reducing staff numbers. A CBA spokesman yesterday cited 'this current economic environment' and the need to 'remain competitive'. Chief executive Ralph Norris chaired a meeting of the bank's executive committee last week, where a 5 percent cost reduction target was decided. The move comes in the wake of ANZ Bank's decision to cut 500 staff as part of a restructuring drive. Page 21.
Federal Treasurer Wayne Swan yesterday visited the Pilbara mining region in Western Australia as he prepared to make a decision on mining magnate Andrew Forrest's attempt to gain access to the rail network of BHP Billiton<BLT.L> and Rio Tinto<RIO.L>. As part of the quiet trip, Mr Swan was understood to have visited the iron ore mining operations of Mr Forrest's Fortescue Metals Group, BHP and Rio. Mr Swan must decide by tomorrow on whether to allow third-party access to the private Pilbara iron ore railways. Page 21.
Brazilian mining group Vale has echoed comments by rival Rio Tinto that Chinese demand for commodities will not recover this year. Chief executive Roger Agnelli said there would be a 'real crunch in the market' in November, although 'it will not be a disaster.' Vale is the world's largest iron ore exporter and the leading supplier to China. Mr Agnelli also said the company was interested in 'growing organically' rather than using its US$27 billion war chest to make acquisitions. Page 25.
Sino Gold chief executive Jake Klein has said the opportunities offered to the gold miner by China 'remain absolutely immense' despite the global financial crisis. Noting that China had now overtaken South Africa to become the world's biggest gold producer, Mr Klein called for 'bilateral investment and integration on a people basis' to avail of the opportunities in the giant Asian economy. Sino Gold, which was formed in 2000, runs the Jinfeng goldmine in China. Page 25.
THE SYDNEY MORNING HERALD (www.smh.com.au)
St George Bank will on Wednesday announce a record annual cash profit of A$1.3 billion. The result will be the bank's last as an independent entity before its expected merger with larger lender Westpac Banking Corp next month -- a process that will also see the exit of St George Bank chief executive Paul Fegan. St George Bank shareholders will vote on the merger scheme of arrangement on November 13. Page 21.
Brisbane-based insurance and banking group Suncorp Metway <SUN.AX> is expected to postpone plans to sell its banking arm because of subdued pricing in the sector. Suncorp chief executive John Mulcahy is likely to cite the Federal Government's moves to bolster the domestic banking system when he makes the expected announcement tomorrow at the group's annual investor meeting. Mr Mulcahy is also likely to tell investors Suncorp remains on track to secure its funding program for fiscal 2009. Page 23.
Rio Tinto chairman Paul Skinner could succeed Paul Sutherland as chairman of BP after the latter agreed to extend his tenure at the helm of the energy group in order to facilitate the transition. Mr Skinner's appointment is backed by the BP board, but the Rio Tinto chairman has refused to discuss his move while Rio Tinto remains the target of a hostile takeover bid from BHP Billiton. There had been speculation earlier that former BHP Billiton chief executive Chip Goodyear was also a candidate for the post of BP chairman. Page 24.
THE AGE (www.theage.com.au)
Perpetual Investments is seeking additional measures by the Federal Government to ease jittery investors before the fund manager lifts a freeze on redemptions from its A$2 billion income and mortgage funds. Chief executive David Deverall said yesterday the Government's move to guarantee bank deposits 'had caused some issues in our sector' and investors needed to be assured money placed 'outside Government-guaranteed institutions is still very, very safe'. Page B1.
Global pharmaceutical group Pfizer will fund Australian life-sciences companies using the venture capital model. Pfizer vice-president for venture capital Barbara Dalton told the AusBiotech 2008 conference in Melbourne yesterday that venture capital was increasingly seen by Pfizer and other pharmaceutical companies as 'a tool to create relationships with the entrepreneur world'. Dr Dalton will this week hold talks with several Australian biotechnology firms. Page B2.
A discontented shareholder of drug developer Biota is seeking a position on the troubled company's board at the annual investor meeting on Wednesday. The move by Melbourne doctor Michael Montalto spells more problems for Biota, which earlier this year settled a legal skirmish with licensing partner GlaxoSmithKline for a much smaller than expected A$20 million. Biota chairman John Grant on Friday flagged the use of proxy votes in an attempt to scuttle Dr Montalto's attempt. Page B3.
Regional lender Bendigo and Adelaide Bank is expected to announce in an investor update today that it will appoint its new chief executive early next year. Bendigo managing director Rob Hunt plans to step down by the middle of next year, with executive director Jamie McPhee regarded as the most likely successor. The bank is also likely to reveal that it recorded an unexpected increase in the rate of its deposit growth. Page B3. -- . 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.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Embattled childcare centre operator ABC Learning Centres <ABS.AX> has ordered its centres to offer employment to casual staff hired from childcare recruitment firm 123 Careers after pulling out of a A$70 million agreement to buy 123 Careers. However, the recruitment firm late on Friday won a temporary injunction from the Supreme Court of Queensland, preventing ABC Learning from employing 123 Careers' staff. Don Jones, director of 123 Careers, said yesterday the firm would not return the A$40 million ABC had paid as part of the aborted deal. Page 18.
British-based energy company BG Group is set to announce a A$5 billion friendly takeover offer for Queensland Gas Company. The bid, expected to be unveiled today or tomorrow, will offer about A$5.45 per QGC share, significantly higher than the A$3.20 at which QGC shares last traded. As part of the transaction, QGC's biggest shareholder, energy utility AGL <AGK.AX>, will offload its 25 percent stake in QGC to BG while the British group will reciprocate by agreeing to supply gas to AGL. Page 18.
Telstra is facing pressure from unions over its aggressive strategy in relation to the tender process for the A$4.7 billion national broadband network tender. The Australian Council of Trade Unions (ACTU) says the telecommunications company's 'combative' approach has placed 'the long-term interest of shareholders at risk'. The ACTU, which has called for a 'truly collaborative and co-operative' approach by Telstra, will this week hold meetings over the issue with industry superannuation funds that hold Telstra shares. Page 18.
Building products group Boral increased government spending on infrastructure to offset the slowdown in private sector spending. Chief executive Rod Pearse told Boral's annual meeting on Friday that the Federal Government's A$20 billion Building Australia Fund would help drive infrastructure spending. Mr Pearse, who also flagged significant savings from using alternative fuels, said the use of compressed natural gas agitators would 'reduce emissions and reduce costs'. Page 19.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Commonwealth Bank of Australia has flagged a rigorous A$370 million cost-cutting program that would involve reducing staff numbers. A CBA spokesman yesterday cited 'this current economic environment' and the need to 'remain competitive'. Chief executive Ralph Norris chaired a meeting of the bank's executive committee last week, where a 5 percent cost reduction target was decided. The move comes in the wake of ANZ Bank's decision to cut 500 staff as part of a restructuring drive. Page 21.
Federal Treasurer Wayne Swan yesterday visited the Pilbara mining region in Western Australia as he prepared to make a decision on mining magnate Andrew Forrest's attempt to gain access to the rail network of BHP Billiton<BLT.L> and Rio Tinto<RIO.L>. As part of the quiet trip, Mr Swan was understood to have visited the iron ore mining operations of Mr Forrest's Fortescue Metals Group, BHP and Rio. Mr Swan must decide by tomorrow on whether to allow third-party access to the private Pilbara iron ore railways. Page 21.
Brazilian mining group Vale has echoed comments by rival Rio Tinto that Chinese demand for commodities will not recover this year. Chief executive Roger Agnelli said there would be a 'real crunch in the market' in November, although 'it will not be a disaster.' Vale is the world's largest iron ore exporter and the leading supplier to China. Mr Agnelli also said the company was interested in 'growing organically' rather than using its US$27 billion war chest to make acquisitions. Page 25.
Sino Gold chief executive Jake Klein has said the opportunities offered to the gold miner by China 'remain absolutely immense' despite the global financial crisis. Noting that China had now overtaken South Africa to become the world's biggest gold producer, Mr Klein called for 'bilateral investment and integration on a people basis' to avail of the opportunities in the giant Asian economy. Sino Gold, which was formed in 2000, runs the Jinfeng goldmine in China. Page 25.
THE SYDNEY MORNING HERALD (www.smh.com.au)
St George Bank will on Wednesday announce a record annual cash profit of A$1.3 billion. The result will be the bank's last as an independent entity before its expected merger with larger lender Westpac Banking Corp next month -- a process that will also see the exit of St George Bank chief executive Paul Fegan. St George Bank shareholders will vote on the merger scheme of arrangement on November 13. Page 21.
Brisbane-based insurance and banking group Suncorp Metway <SUN.AX> is expected to postpone plans to sell its banking arm because of subdued pricing in the sector. Suncorp chief executive John Mulcahy is likely to cite the Federal Government's moves to bolster the domestic banking system when he makes the expected announcement tomorrow at the group's annual investor meeting. Mr Mulcahy is also likely to tell investors Suncorp remains on track to secure its funding program for fiscal 2009. Page 23.
Rio Tinto chairman Paul Skinner could succeed Paul Sutherland as chairman of BP after the latter agreed to extend his tenure at the helm of the energy group in order to facilitate the transition. Mr Skinner's appointment is backed by the BP board, but the Rio Tinto chairman has refused to discuss his move while Rio Tinto remains the target of a hostile takeover bid from BHP Billiton. There had been speculation earlier that former BHP Billiton chief executive Chip Goodyear was also a candidate for the post of BP chairman. Page 24.
THE AGE (www.theage.com.au)
Perpetual Investments is seeking additional measures by the Federal Government to ease jittery investors before the fund manager lifts a freeze on redemptions from its A$2 billion income and mortgage funds. Chief executive David Deverall said yesterday the Government's move to guarantee bank deposits 'had caused some issues in our sector' and investors needed to be assured money placed 'outside Government-guaranteed institutions is still very, very safe'. Page B1.
Global pharmaceutical group Pfizer will fund Australian life-sciences companies using the venture capital model. Pfizer vice-president for venture capital Barbara Dalton told the AusBiotech 2008 conference in Melbourne yesterday that venture capital was increasingly seen by Pfizer and other pharmaceutical companies as 'a tool to create relationships with the entrepreneur world'. Dr Dalton will this week hold talks with several Australian biotechnology firms. Page B2.
A discontented shareholder of drug developer Biota is seeking a position on the troubled company's board at the annual investor meeting on Wednesday. The move by Melbourne doctor Michael Montalto spells more problems for Biota, which earlier this year settled a legal skirmish with licensing partner GlaxoSmithKline for a much smaller than expected A$20 million. Biota chairman John Grant on Friday flagged the use of proxy votes in an attempt to scuttle Dr Montalto's attempt. Page B3.
Regional lender Bendigo and Adelaide Bank is expected to announce in an investor update today that it will appoint its new chief executive early next year. Bendigo managing director Rob Hunt plans to step down by the middle of next year, with executive director Jamie McPhee regarded as the most likely successor. The bank is also likely to reveal that it recorded an unexpected increase in the rate of its deposit growth. Page B3. -- . 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.