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)
--Partners in ExxonMobil's liquefied natural gas project in Papua New Guinea anticipate the finalisation of a US$11 billion (A$15 billion) financing package by July. Export credit agencies (ECAs) are expected to offer a majority of the funding, and an industry source said 'we wouldn't anticipate we would require a huge amount from commercial banks because the ECAs seem to have a lot of money available.' ExxonMobil has a 41.5 percent stake, with oil and gas explorers Oil Search with 34 percent and Santos with 17.7 percent. Page 13.
--The chairman of BrisConnections has admitted he offered the company's largest investor between A$2 million and A$3 million in exchange for voting against a motion to wind up the business. Trevor Rowe told national broadcaster ABC that one of the company's underwriters, Macquarie Bank, asked him to call an advisor to Nicholas Bolton of Australian Style Investments. Mr Rowe says he was told 'Mr Bolton's not going to do anything under five million.' Mr Rowe had earlier claimed it was Mr Bolton who called him seeking to make a deal. Page 13.
--Energy provider Origin Energy says that contrary to reports it's A$35 billion liquefied natural gas project in Queensland remains on schedule. Late last week Citigroup analysts cited 'the realities of today's economic environment' would the most likely lead to a three-year to five-year delay on the project. But a spokesperson for Origin insisted yesterday that the company's plan to have its first processing line in operation by 2014 remains 'on track.' Page 14.
--Analysts believe that at today's annual general meeting the chairman of Indophil Resources will face pressure from shareholders over last year's two failed takeover bids for the company. Major shareholder Lion Selection has demanded that chairman Brian Phillips address a series of questions in relation to governance, performance and transparency.
'Indophil's share price has fallen by approximately 80 percent since two cash bids were made for the company,' said Lion's managing director, Robin Widdup. Page 14.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--Investors opposed to mining giant Rio Tinto 's proposed deal with Chinalco are expected to push for an overhaul of the board at today's annual general meeting, according to analysts. Under the deal, Chinalco would take an 18 percent stake in Rio and up to 50 percent in Rio's iron ore, copper and aluminium assets. Duncan Seddon of the Australian Shareholders Association says he's against the deal on corporate governance grounds and local shareholders have been advised to oppose the re-election of all the directors. Page 19.
--A group of banks may buy out the 8000 subordinated noteholders of failed investment bank Babcock & Brown.
Analysts believe a syndicate of 25 banks could offer a better deal than the rejected A$600,000 offered by management to shareholders in March. Wayne Powell, who represents a group of 40 noteholders, said 'we are in the dark about what is going on.'
The appointed administrators of Babcock & Brown have four months to examine the business affairs of the company. Page 19.
--Widespread change in Australia's wealth management industry is an inevitable consequence of the global financial crisis, BT Financial chief executive Rob Coombes said yesterday. The banking and finance veteran insisted there would be considerable consolidation within the industry over the next 'one to three years' as customers seek out trusted brands. Mr Coombes also predicted 'unprecedented' demand for financial planning over the next decade as baby boomers retire. Page 19.
--Woolworths has been named Australia's most valuable brand in a global survey of the world's top 500 consumer names. Consultants Brand Finance ranked Woolworths the 143rd best global brand with a value of US$4.6 billion as of December 2008, a gain of 5 percent. The previous leading Australian brand, National Bank of Australia, slumped from last year's ranking of 145th to 256th, with its value estimated to have dropped by 56 percent to US$2.67 billion. Page 20.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--Investment banks Macquarie Group and Deustche Bank are locked in a dispute over a proposal to privatise the BrisConnections toll-road project. The two underwriters have been negotiating a deal to delist the project since last October when it become clear the majority of BrisConnections' retail shareholders had little chance of funding a second instalment of A$409 million. A spokesman for Macquarie declined to say whether any progress was made during talks on the weekend, and Deutsche Bank was unavailable for comment. Page 17.
--The Wingecarribee Shire Council in the New South Wales Southern Highlands has vowed to pursue 'all options' in its attempt to recoup A$29 million tied up in the failure of Wall Street bank Lehman Brothers. The shire is one of many councils and community groups which invested through Lehman and its predecessor, Grange Securities, in highly rated securities which have now plunged in value. Lehman's administrators have made an offer to the councils of A5.6 cents in the dollar. Page 17.
--A lawsuit against Westpac Banking Corporation by one of its former executives goes back to the Federal Court of Australia in Sydney today. Lawyers for former Westpac head of mining finance Haydn Lynch will seek a preliminary pre-trial hearing. Mr Lynch alleges the bank broke promises that it would lead several major mining project finance transactions when it made him redundant late last year. Mr Lynch left a higher-paying job as head of commodities at Investec Bank to join Westpac in 2006. Page 17.
--Croupiers at James Packer's new casino in Macau will wear blue wigs and nose rings as part of a punk rock theme designed to attract Asian gamblers. The casino's 520 gaming tables and 1350 poker machines are expected to be open for business by the first week in June, subject to local occupancy permits. The Hard Rock Cafe-themed casino is part of the US$2.1 billion (A$3.03 billion) City of Dreams casino development, which includes a Crown Towers hotel and a Hard Rock-themed hotel. Page 19.
THE AGE (www.theage.com.au)
--Iron ore miner Fortescue Metals Group has opened talks with Chinese sovereign wealth fund China Investment Corporation (CIC) over financing A$9.2 billion in a major expansion of Fortescue's Pilbara mine. To avoid Australian Foreign Investment Review Board concerns about asset sales, CIC could finance the huge mine expansion and share in the profit 'upside', according to analysts. The discussions between Fortescue chief executive Andrew Forrest and CIC chief executive Lou Jiwei commenced Friday. Page B1.
--Nickel miner Western Areas Exploration may have to wait up to six months to discover if its A$55 million compensation bid has been successful. Justice Eric Heenan reserved judgement on the case on Friday following a 17 day hearing in the West Australian Supreme Court. The firm is suing former board members Terry Streeter and David Cooper alleging the pair steered a nickel deal away from the company into a firm they set up a year later. 'I haven't taken advantage of the little old lady next door,' said Mr Streeter on Friday. Page B3.
--Entrepreneur Nicholas Bolton is to launch legal action against an Australian internet controller over its decision to cancel accreditation of one of his companies. The Australian Domain Name Administrator (auDA) last week terminated the accreditation of Mr Bolton's Bottle Domains, citing a 'serious breach of its obligations.' 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)
--Partners in ExxonMobil's liquefied natural gas project in Papua New Guinea anticipate the finalisation of a US$11 billion (A$15 billion) financing package by July. Export credit agencies (ECAs) are expected to offer a majority of the funding, and an industry source said 'we wouldn't anticipate we would require a huge amount from commercial banks because the ECAs seem to have a lot of money available.' ExxonMobil has a 41.5 percent stake, with oil and gas explorers Oil Search with 34 percent and Santos with 17.7 percent. Page 13.
--The chairman of BrisConnections has admitted he offered the company's largest investor between A$2 million and A$3 million in exchange for voting against a motion to wind up the business. Trevor Rowe told national broadcaster ABC that one of the company's underwriters, Macquarie Bank, asked him to call an advisor to Nicholas Bolton of Australian Style Investments. Mr Rowe says he was told 'Mr Bolton's not going to do anything under five million.' Mr Rowe had earlier claimed it was Mr Bolton who called him seeking to make a deal. Page 13.
--Energy provider Origin Energy says that contrary to reports it's A$35 billion liquefied natural gas project in Queensland remains on schedule. Late last week Citigroup analysts cited 'the realities of today's economic environment' would the most likely lead to a three-year to five-year delay on the project. But a spokesperson for Origin insisted yesterday that the company's plan to have its first processing line in operation by 2014 remains 'on track.' Page 14.
--Analysts believe that at today's annual general meeting the chairman of Indophil Resources will face pressure from shareholders over last year's two failed takeover bids for the company. Major shareholder Lion Selection has demanded that chairman Brian Phillips address a series of questions in relation to governance, performance and transparency.
'Indophil's share price has fallen by approximately 80 percent since two cash bids were made for the company,' said Lion's managing director, Robin Widdup. Page 14.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--Investors opposed to mining giant Rio Tinto 's proposed deal with Chinalco are expected to push for an overhaul of the board at today's annual general meeting, according to analysts. Under the deal, Chinalco would take an 18 percent stake in Rio and up to 50 percent in Rio's iron ore, copper and aluminium assets. Duncan Seddon of the Australian Shareholders Association says he's against the deal on corporate governance grounds and local shareholders have been advised to oppose the re-election of all the directors. Page 19.
--A group of banks may buy out the 8000 subordinated noteholders of failed investment bank Babcock & Brown.
Analysts believe a syndicate of 25 banks could offer a better deal than the rejected A$600,000 offered by management to shareholders in March. Wayne Powell, who represents a group of 40 noteholders, said 'we are in the dark about what is going on.'
The appointed administrators of Babcock & Brown have four months to examine the business affairs of the company. Page 19.
--Widespread change in Australia's wealth management industry is an inevitable consequence of the global financial crisis, BT Financial chief executive Rob Coombes said yesterday. The banking and finance veteran insisted there would be considerable consolidation within the industry over the next 'one to three years' as customers seek out trusted brands. Mr Coombes also predicted 'unprecedented' demand for financial planning over the next decade as baby boomers retire. Page 19.
--Woolworths has been named Australia's most valuable brand in a global survey of the world's top 500 consumer names. Consultants Brand Finance ranked Woolworths the 143rd best global brand with a value of US$4.6 billion as of December 2008, a gain of 5 percent. The previous leading Australian brand, National Bank of Australia, slumped from last year's ranking of 145th to 256th, with its value estimated to have dropped by 56 percent to US$2.67 billion. Page 20.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--Investment banks Macquarie Group and Deustche Bank are locked in a dispute over a proposal to privatise the BrisConnections toll-road project. The two underwriters have been negotiating a deal to delist the project since last October when it become clear the majority of BrisConnections' retail shareholders had little chance of funding a second instalment of A$409 million. A spokesman for Macquarie declined to say whether any progress was made during talks on the weekend, and Deutsche Bank was unavailable for comment. Page 17.
--The Wingecarribee Shire Council in the New South Wales Southern Highlands has vowed to pursue 'all options' in its attempt to recoup A$29 million tied up in the failure of Wall Street bank Lehman Brothers. The shire is one of many councils and community groups which invested through Lehman and its predecessor, Grange Securities, in highly rated securities which have now plunged in value. Lehman's administrators have made an offer to the councils of A5.6 cents in the dollar. Page 17.
--A lawsuit against Westpac Banking Corporation by one of its former executives goes back to the Federal Court of Australia in Sydney today. Lawyers for former Westpac head of mining finance Haydn Lynch will seek a preliminary pre-trial hearing. Mr Lynch alleges the bank broke promises that it would lead several major mining project finance transactions when it made him redundant late last year. Mr Lynch left a higher-paying job as head of commodities at Investec Bank to join Westpac in 2006. Page 17.
--Croupiers at James Packer's new casino in Macau will wear blue wigs and nose rings as part of a punk rock theme designed to attract Asian gamblers. The casino's 520 gaming tables and 1350 poker machines are expected to be open for business by the first week in June, subject to local occupancy permits. The Hard Rock Cafe-themed casino is part of the US$2.1 billion (A$3.03 billion) City of Dreams casino development, which includes a Crown Towers hotel and a Hard Rock-themed hotel. Page 19.
THE AGE (www.theage.com.au)
--Iron ore miner Fortescue Metals Group has opened talks with Chinese sovereign wealth fund China Investment Corporation (CIC) over financing A$9.2 billion in a major expansion of Fortescue's Pilbara mine. To avoid Australian Foreign Investment Review Board concerns about asset sales, CIC could finance the huge mine expansion and share in the profit 'upside', according to analysts. The discussions between Fortescue chief executive Andrew Forrest and CIC chief executive Lou Jiwei commenced Friday. Page B1.
--Nickel miner Western Areas Exploration may have to wait up to six months to discover if its A$55 million compensation bid has been successful. Justice Eric Heenan reserved judgement on the case on Friday following a 17 day hearing in the West Australian Supreme Court. The firm is suing former board members Terry Streeter and David Cooper alleging the pair steered a nickel deal away from the company into a firm they set up a year later. 'I haven't taken advantage of the little old lady next door,' said Mr Streeter on Friday. Page B3.
--Entrepreneur Nicholas Bolton is to launch legal action against an Australian internet controller over its decision to cancel accreditation of one of his companies. The Australian Domain Name Administrator (auDA) last week terminated the accreditation of Mr Bolton's Bottle Domains, citing a 'serious breach of its obligations.' 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.