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)
-- Brewer Lion Nathan will be the parent company of more than A$10 billion of assets in Australia if Japan's Kirin Holdings is successful with it's A$6.5 billion buy out bid of Lion. The Japanese beverage company plans to merge its dairy and fruit National Foods business together with its dairy manufacturer Dairy Farmers and the beer, wine and spirits of Lion Nathan. Deal negotiations between Kirin and Lion continued over the weekend, and are expected to be finalised today. Page 12.
--The Australian Competition and Consumer Commission (ACCC) has demanded more information from Vodafone Australia and Hutchison Telecommunications' 3 Australia over the proposed merger of the two telecommunications companies. The merged company is to be called VHA, and would have 5.9 million customers in Australia and around a 27 percent share of market revenues. The ACCC is concerned a reduction in competition in the mobile-phone market may affect pricing and therefore disadvantage consumers.
Page 12.
--Trucking company Linfox Logistics intends to cut costs and revise expansion plans in response to a slump in logistics contracts, according to chief executive Michael Byrne. Mr Byrne said that in the face of the global economic slowdown Linfox customers had become 'much more into short-term thinking' and were now looking for 'plain vanilla, simple solutions'. The trucking company will freeze any further acquisitions and shelve plans to expand into India for at least another two years. Page 13.
--The Australian Securities and Investments Commission (ASIC) have confirmed it is investigating the actions of the group seeking to take control of gold explorer Regis Resources. The group of shareholders has acquired a 10.7 percent stake in Regis and is agitating for the removal of the board ahead of an extraordinary general meeting next Monday. ASIC is investigating the difference in time between when group members began buying shares in Regis and when a substantial holder notice was lodged.
Page 13.
THE AUSTRALIAN (www.theaustralian.news.com.au)
-- Poker machine manufacturer Aristocrat Leisure may face a damages claim of up to A$350 million, reducing its interest cover and increasing its gearing. Today the District Court of New York releases its order on US$130 million of convertible subordinated bonds issued by the company in May 2001 that bondholders contend can be converted into shares at almost double their face-value. Bondholders argue they are entitled to the difference between the face-value of the bonds and the current Aristocrat share price. Page 19.
--Telecommunications company Telstra is facing growing budget overspend and sliding implementation dates on its A$12 billion transformation project. The A$3 billion information technology overhaul, a centrepiece of the project, is well behind schedule and over budget, according to insiders. The depth of the project's problems are believed to have been discussed last week with the final candidates interviewed for the replacement of departing chief executive Sol Trujillo, who initiated the transformation project. Page 19.
--Australia's Big Four banks will each report their March half-year results this week, with National Australia Bank to lead tomorrow. NAB Chief executive Cameron Clyne is expected by analysts to announce an increase in cash earnings of around a 1.8 percent, and investors are likely to focus on the stressed British economy's impact on the bank's UK business.
'Accelerating bad news from the UK is likely to see the stock underperform,' Goldman Sachs JBWere said in a recent note to investors. Page 21.
--Services on Queensland's Blackwater rail system near the port of Gladstone returned to normal on Saturday, according to Queensland Rail yesterday. Deliveries to the port were restricted last week after two trains collided near Grantleigh, west of Rockhampton, on Tuesday night. The line serves 15 mines, including operations by Rio Tinto, XStrata, BHP Billiton and Felix Resources, and while services were limited, no delays to shipments were reported. Page 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
-- Miner BHP Billiton has conceded that its Bayside smelter in South Africa may be unviable because of weaker domestic demand. Already operating at half of its capacity due to power rationing, the global financial crisis has dried up supply contracts from customers and driven output even lower.
'BHP Billiton is exploring various options relating to restructuring of the Bayside smelter to ensure the long-term sustainability of the operation,' spokeswoman Bronwyn Wilkinson said on Friday. Page 17.
--Sydney Airport will meet with officials of the Board of Airline Representatives within the next fortnight to seek approval to defer up to A$90 million of expansion projects. The airport has forecast the number of travellers passing through its terminals will fall by several million over the next five years, as a result of the impact of the global economic downturn. A spokesman for Macquarie owned airport said yesterday that continued investment would be 'at an appropriate level' with projects adjusted to suit passenger traffic. Page 17.
--Smaller bank lenders have urged the Federal Government to reconsider the wholesale funding guarantee to remove the anti-competitive advantage it has created for Australia's Big Four banks. As the guarantee is currently structured, the Big Four banks can raise additional term funding from credit markets at a lower cost than the smaller institutions. The major banks pay 70 basis points for their borrowings, while smaller banks are asked to pay between 100 and 150 basis points. Page 17.
--Telecommunications company Telstra's chief executive Sol Trujillo has drawn criticism from a major shareholder of US retailer Target. Pershing Square Capital Management, Target's fourth largest shareholder, is seeking to change the company's directors, claiming the incumbents, of which Mr Trujillo is one, lack experience in retailing. In a note to shareholders last week Pershing said of Mr Trujillo, 'We do not feel Mr Trujillo's telecommunications background brings relevant expertise.' Page 17.
THE AGE (www.theage.com.au)
-- Hundreds of jobs in the coal sector could be saved by carbon capture and storage (CCS) technology, according to the head of Clean Coal Victoria Charlie Speirs. The management of greenhouse gas emissions and harnessing the potential of CCS technology could enable new coal-powered stations to be built says Mr Speirs. 'They would just have to be different to the current design,' Speirs said last week. 'We need to make sure the capture is done properly and the storage is right.' Page B1.
--The engineering construction industry in Australia will shrink by 20 percent on the next two financial years, according to a report by economic forecaster BIS Shrapnel. The report's prediction comes despite the Federal Government's A$10 billion injection for infrastructure projects nationally and the announcement of a third stimulus package, to focus on infrastructure, as part of next month's federal budget.
Declining private sector investment and the slump in the mining sector are seen as the major causes of the decline. Page B3.
--A preliminary hearing will be heard in the Sydney Federal Court today to consider a claim lodged against toll-road project BrisConnections and its adviser Macquarie Group.
Lodged on Friday by investor Jim Byrnes, the claim alleges the product disclosure statement for BrisConnections omitted 'the leverage risk associated with the project', and falsely said the dividend was fixed. It is also alleged that BrisConnections made several misleading statements to the Australian Stock Exchange.
Page B3.
--Investors in Babcock & Brown Capital will meet in Sydney today to vote on resolutions that will determine the immediate future of the fund. The three major resolutions to be considered are a deal to swap B&B as the manager of the fund with BCM's own team, a change of name to Eircom Holdings, and a cash and shares incentive package for chief executive officer Andrew Day. Analysts expect the main resolutions to pass, with the only potentially contentious issue being Mr Day's incentive package.
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)
-- Brewer Lion Nathan will be the parent company of more than A$10 billion of assets in Australia if Japan's Kirin Holdings is successful with it's A$6.5 billion buy out bid of Lion. The Japanese beverage company plans to merge its dairy and fruit National Foods business together with its dairy manufacturer Dairy Farmers and the beer, wine and spirits of Lion Nathan. Deal negotiations between Kirin and Lion continued over the weekend, and are expected to be finalised today. Page 12.
--The Australian Competition and Consumer Commission (ACCC) has demanded more information from Vodafone Australia and Hutchison Telecommunications' 3 Australia over the proposed merger of the two telecommunications companies. The merged company is to be called VHA, and would have 5.9 million customers in Australia and around a 27 percent share of market revenues. The ACCC is concerned a reduction in competition in the mobile-phone market may affect pricing and therefore disadvantage consumers.
Page 12.
--Trucking company Linfox Logistics intends to cut costs and revise expansion plans in response to a slump in logistics contracts, according to chief executive Michael Byrne. Mr Byrne said that in the face of the global economic slowdown Linfox customers had become 'much more into short-term thinking' and were now looking for 'plain vanilla, simple solutions'. The trucking company will freeze any further acquisitions and shelve plans to expand into India for at least another two years. Page 13.
--The Australian Securities and Investments Commission (ASIC) have confirmed it is investigating the actions of the group seeking to take control of gold explorer Regis Resources. The group of shareholders has acquired a 10.7 percent stake in Regis and is agitating for the removal of the board ahead of an extraordinary general meeting next Monday. ASIC is investigating the difference in time between when group members began buying shares in Regis and when a substantial holder notice was lodged.
Page 13.
THE AUSTRALIAN (www.theaustralian.news.com.au)
-- Poker machine manufacturer Aristocrat Leisure may face a damages claim of up to A$350 million, reducing its interest cover and increasing its gearing. Today the District Court of New York releases its order on US$130 million of convertible subordinated bonds issued by the company in May 2001 that bondholders contend can be converted into shares at almost double their face-value. Bondholders argue they are entitled to the difference between the face-value of the bonds and the current Aristocrat share price. Page 19.
--Telecommunications company Telstra is facing growing budget overspend and sliding implementation dates on its A$12 billion transformation project. The A$3 billion information technology overhaul, a centrepiece of the project, is well behind schedule and over budget, according to insiders. The depth of the project's problems are believed to have been discussed last week with the final candidates interviewed for the replacement of departing chief executive Sol Trujillo, who initiated the transformation project. Page 19.
--Australia's Big Four banks will each report their March half-year results this week, with National Australia Bank to lead tomorrow. NAB Chief executive Cameron Clyne is expected by analysts to announce an increase in cash earnings of around a 1.8 percent, and investors are likely to focus on the stressed British economy's impact on the bank's UK business.
'Accelerating bad news from the UK is likely to see the stock underperform,' Goldman Sachs JBWere said in a recent note to investors. Page 21.
--Services on Queensland's Blackwater rail system near the port of Gladstone returned to normal on Saturday, according to Queensland Rail yesterday. Deliveries to the port were restricted last week after two trains collided near Grantleigh, west of Rockhampton, on Tuesday night. The line serves 15 mines, including operations by Rio Tinto, XStrata, BHP Billiton and Felix Resources, and while services were limited, no delays to shipments were reported. Page 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
-- Miner BHP Billiton has conceded that its Bayside smelter in South Africa may be unviable because of weaker domestic demand. Already operating at half of its capacity due to power rationing, the global financial crisis has dried up supply contracts from customers and driven output even lower.
'BHP Billiton is exploring various options relating to restructuring of the Bayside smelter to ensure the long-term sustainability of the operation,' spokeswoman Bronwyn Wilkinson said on Friday. Page 17.
--Sydney Airport will meet with officials of the Board of Airline Representatives within the next fortnight to seek approval to defer up to A$90 million of expansion projects. The airport has forecast the number of travellers passing through its terminals will fall by several million over the next five years, as a result of the impact of the global economic downturn. A spokesman for Macquarie owned airport said yesterday that continued investment would be 'at an appropriate level' with projects adjusted to suit passenger traffic. Page 17.
--Smaller bank lenders have urged the Federal Government to reconsider the wholesale funding guarantee to remove the anti-competitive advantage it has created for Australia's Big Four banks. As the guarantee is currently structured, the Big Four banks can raise additional term funding from credit markets at a lower cost than the smaller institutions. The major banks pay 70 basis points for their borrowings, while smaller banks are asked to pay between 100 and 150 basis points. Page 17.
--Telecommunications company Telstra's chief executive Sol Trujillo has drawn criticism from a major shareholder of US retailer Target. Pershing Square Capital Management, Target's fourth largest shareholder, is seeking to change the company's directors, claiming the incumbents, of which Mr Trujillo is one, lack experience in retailing. In a note to shareholders last week Pershing said of Mr Trujillo, 'We do not feel Mr Trujillo's telecommunications background brings relevant expertise.' Page 17.
THE AGE (www.theage.com.au)
-- Hundreds of jobs in the coal sector could be saved by carbon capture and storage (CCS) technology, according to the head of Clean Coal Victoria Charlie Speirs. The management of greenhouse gas emissions and harnessing the potential of CCS technology could enable new coal-powered stations to be built says Mr Speirs. 'They would just have to be different to the current design,' Speirs said last week. 'We need to make sure the capture is done properly and the storage is right.' Page B1.
--The engineering construction industry in Australia will shrink by 20 percent on the next two financial years, according to a report by economic forecaster BIS Shrapnel. The report's prediction comes despite the Federal Government's A$10 billion injection for infrastructure projects nationally and the announcement of a third stimulus package, to focus on infrastructure, as part of next month's federal budget.
Declining private sector investment and the slump in the mining sector are seen as the major causes of the decline. Page B3.
--A preliminary hearing will be heard in the Sydney Federal Court today to consider a claim lodged against toll-road project BrisConnections and its adviser Macquarie Group.
Lodged on Friday by investor Jim Byrnes, the claim alleges the product disclosure statement for BrisConnections omitted 'the leverage risk associated with the project', and falsely said the dividend was fixed. It is also alleged that BrisConnections made several misleading statements to the Australian Stock Exchange.
Page B3.
--Investors in Babcock & Brown Capital will meet in Sydney today to vote on resolutions that will determine the immediate future of the fund. The three major resolutions to be considered are a deal to swap B&B as the manager of the fund with BCM's own team, a change of name to Eircom Holdings, and a cash and shares incentive package for chief executive officer Andrew Day. Analysts expect the main resolutions to pass, with the only potentially contentious issue being Mr Day's incentive package.
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.