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 planned demerger of paints and explosives maker Orica is unlikely to happen for at least another year, according to chief executive Graeme Liebelt. The company intends to separate its mining explosives business from its consumer products operation in the belief that investors will be more attracted to the specialised companies. 'There is a group of investors, particularly international investors, who are attracted to a pure-play mining services company,? Mr Liebelt said yesterday. Page 13.
--Iron-ore pricing negotiations between mining companies Rio Tinto and BHP Billiton and steel-makers Nippon Steel and Posco, are believed to be about to conclude. Industry sources have interpreted the May 14 move by Korea's Posco to cut domestic steel prices as an indication that it has clarity on input costs for raw materials. Analysts say this year's annual discussions have been more cumbersome because of the global economic crisis and the downwards pressure this has brought upon the price of iron-ore. Page 13.
--The chairman of mining company Rio Tinto will meet with major Australian shareholders this week to discuss the proposed sale of a 15 percent stake to Chinese company Chinalco. Jan du Plessis has been overseas for the past few weeks visiting international shareholders where he has already encountered resistance to the proposal, mainly due to the significant change in global sharemarkets since the deal was first proposed. Mr du Plessis is also expected to meet with the Federal Government whicho must also approve the deal on a foreign ownership basis.
Page 13.
--Financial statements recently filed with the Australian Securities and Investments Commission have revealed a A$11.2 million decrease in profit for food manufacturer Nestle Australia . The major cause of the slump was an increase in taxation, with the company paying A$65.4 million in the calendar year 2008, compared to A$42.2 million in 2007. A note released by the company's directors says the results 'were in line with management's expectations.' Page 14.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--Australian wool exporters are concerned that an increasing reliance on the Chinese market could impact future prices. Over the past seven years, China's share of Australian wool exports has risen to 68 percent from 39 percent, with the second-largest customer, Italy, taking only 7 percent. Chris Wilcox, executive director of the National Council of Wool Selling Brokers, says 'my worry about such dominant position is the Australian wool industry's exposure to sovereign or countrywide risks.' Page 19.
--The Australian Competition and Consumer Commission has warned of an increase in the concentration of power among Australia's Big Four banks. The concern follows the release of data from market research firm Brandmanagement which shows that of the A$26.6 billion growth in mortgage books by the Big Four banks in the March quarter, A$22.7 billion was taken by the recently merged institutions of the Commonwealth Bank of Australia/BankWest and Westpac Banking Corp/St George. Page 19.
--A lack of interest from buyers for mining company Rio Tinto's borates business has seen the company forced to withdraw it from the market. Bids of US$750 million and US$1.1 billion were reportedly received from China and private equity bidders, but the offers were considered by the company to be well below market value. A statement from the company acknowledges that slumping global commodities demand had driven asset prices down making a sale in the 'prevailing economic conditions' unacceptable. Page 21.
--The first in a series of small-scale, wind-powered desalination plants may be installed in the city of Salisbury in South Australia within the next few weeks, according to entrepreneur Barrie Harrop. Windesal, the company owned by Mr Harrop, says it is be able to produce cost-effective drinking-water at a rate of 3-5 gigalitres a year. Mr Harrup claims his station?s take just 12 weeks to construct and could be a possible solution for the state's chronic water shortage. Pg 24.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--None of the potential buyers of Royal Bank of Scotland's A$2.03 billion Asian portfolio has sought to purchase all of the assets, according to sources within the Australia and New Zealand Banking Group (ANZ). The outcome is believed to leave ANZ in a much stronger position than previously thought, with the bank eager to acquire the Indonesian assets that are available for purchase. London sources say banking group HSBC remains the favourite of the shortlisted suitors to acquire the majority of assets. Page 17.
--Minister for Corporate Law Nick Sherry has announced that the new rules to govern short-selling trades are 'all but finished' and will be released within the next few weeks.
Speaking in Melbourne last week, Senator Sherry said the regulations will augment the legislation passed by the Federal Government last year. The release of the new rules had been delayed due to 'vigorously contested' views, 'in particular the time frame for disclosure,' Senator Sherry said. Page 18.
--The Queensland State Government is expected this week to approve the environmental impact statement of oil and gas exploration company Santos for its A$8 billion liquefied natural gas project. The Santos/Petronas project is one of four company proposals for Curtis Island, which is situated off the coast near Gladstone. Should approval be received from the Bligh government this week, Santos would secure a clear lead in the race to offtake gas from the region. Page 18.
--Zinc mining company OZ Minerals is boosting exploration work to speed expansion plans at Prominent Hill, the company's only remaining mine. 'We will recommence our exploration that we have had to defer and we will complete our studies into future underground and expanded pit production,' chairman Barry Cusack said last week. The new activity has been made possible by the sale of assets to China Minmetals Group, allowing the repayment of A$1.1 billion in debt. Page 19.
THE AGE (www.theage.com.au)
--Foreign banks remain a key source of finance for Australian business and need to be treated equally to domestic banks, according to the chief executive of banking group HBOS Australia.
David Smith said yesterday that it was harder to compete in the Australian market because domestic banks held dominant market share and also benefited from the Federal Government's funding guarantee. 'It's important that foreign bank players are treated with an even hand and level playing field so that we can give the Australian consumer choice,' Mr Smith said. Page B2.
--Consumer advocacy group Choice has confirmed it will proceed with its planned website to monitor grocery prices across the country. Chief executive Nick Stace said yesterday that the site would be launched on July 1, despite retailers refusal to supply data. 'Grocery Choice could and probably will transform the market for groceries,' Mr Stace claimed. The website has received A$13 million of government funding to help it collect and compare individual product prices at stores on a weekly basis. Page B3.
--Australia's biggest mortgage broker, Australian Finance Group, has been unsuccessful in its attempt to buy out minority shareholders. The Perth-based company launched its buyback last month and had hoped to acquire the 26 percent of its issued capital base for around A$7.3 million. However, investment bank Macquarie Group, the holder of a 10 percent stake, and insurers Allianz and Tower, who each hold a five percent stake, have elected not to sell. Page B3.
--Melbourne's auction clearance rate of 81 percent this weekend has been interpreted by some property analysts as a sign that the market may have weathered the worst of the financial crisis. Although the total number of auctions, 475, was almost 20 percent down on the same time last year, the high clearance rate was a reason for optimism according to some estate agents. Page B5. -- 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)
--The planned demerger of paints and explosives maker Orica is unlikely to happen for at least another year, according to chief executive Graeme Liebelt. The company intends to separate its mining explosives business from its consumer products operation in the belief that investors will be more attracted to the specialised companies. 'There is a group of investors, particularly international investors, who are attracted to a pure-play mining services company,? Mr Liebelt said yesterday. Page 13.
--Iron-ore pricing negotiations between mining companies Rio Tinto and BHP Billiton and steel-makers Nippon Steel and Posco, are believed to be about to conclude. Industry sources have interpreted the May 14 move by Korea's Posco to cut domestic steel prices as an indication that it has clarity on input costs for raw materials. Analysts say this year's annual discussions have been more cumbersome because of the global economic crisis and the downwards pressure this has brought upon the price of iron-ore. Page 13.
--The chairman of mining company Rio Tinto will meet with major Australian shareholders this week to discuss the proposed sale of a 15 percent stake to Chinese company Chinalco. Jan du Plessis has been overseas for the past few weeks visiting international shareholders where he has already encountered resistance to the proposal, mainly due to the significant change in global sharemarkets since the deal was first proposed. Mr du Plessis is also expected to meet with the Federal Government whicho must also approve the deal on a foreign ownership basis.
Page 13.
--Financial statements recently filed with the Australian Securities and Investments Commission have revealed a A$11.2 million decrease in profit for food manufacturer Nestle Australia . The major cause of the slump was an increase in taxation, with the company paying A$65.4 million in the calendar year 2008, compared to A$42.2 million in 2007. A note released by the company's directors says the results 'were in line with management's expectations.' Page 14.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--Australian wool exporters are concerned that an increasing reliance on the Chinese market could impact future prices. Over the past seven years, China's share of Australian wool exports has risen to 68 percent from 39 percent, with the second-largest customer, Italy, taking only 7 percent. Chris Wilcox, executive director of the National Council of Wool Selling Brokers, says 'my worry about such dominant position is the Australian wool industry's exposure to sovereign or countrywide risks.' Page 19.
--The Australian Competition and Consumer Commission has warned of an increase in the concentration of power among Australia's Big Four banks. The concern follows the release of data from market research firm Brandmanagement which shows that of the A$26.6 billion growth in mortgage books by the Big Four banks in the March quarter, A$22.7 billion was taken by the recently merged institutions of the Commonwealth Bank of Australia/BankWest and Westpac Banking Corp/St George. Page 19.
--A lack of interest from buyers for mining company Rio Tinto's borates business has seen the company forced to withdraw it from the market. Bids of US$750 million and US$1.1 billion were reportedly received from China and private equity bidders, but the offers were considered by the company to be well below market value. A statement from the company acknowledges that slumping global commodities demand had driven asset prices down making a sale in the 'prevailing economic conditions' unacceptable. Page 21.
--The first in a series of small-scale, wind-powered desalination plants may be installed in the city of Salisbury in South Australia within the next few weeks, according to entrepreneur Barrie Harrop. Windesal, the company owned by Mr Harrop, says it is be able to produce cost-effective drinking-water at a rate of 3-5 gigalitres a year. Mr Harrup claims his station?s take just 12 weeks to construct and could be a possible solution for the state's chronic water shortage. Pg 24.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--None of the potential buyers of Royal Bank of Scotland's A$2.03 billion Asian portfolio has sought to purchase all of the assets, according to sources within the Australia and New Zealand Banking Group (ANZ). The outcome is believed to leave ANZ in a much stronger position than previously thought, with the bank eager to acquire the Indonesian assets that are available for purchase. London sources say banking group HSBC remains the favourite of the shortlisted suitors to acquire the majority of assets. Page 17.
--Minister for Corporate Law Nick Sherry has announced that the new rules to govern short-selling trades are 'all but finished' and will be released within the next few weeks.
Speaking in Melbourne last week, Senator Sherry said the regulations will augment the legislation passed by the Federal Government last year. The release of the new rules had been delayed due to 'vigorously contested' views, 'in particular the time frame for disclosure,' Senator Sherry said. Page 18.
--The Queensland State Government is expected this week to approve the environmental impact statement of oil and gas exploration company Santos for its A$8 billion liquefied natural gas project. The Santos/Petronas project is one of four company proposals for Curtis Island, which is situated off the coast near Gladstone. Should approval be received from the Bligh government this week, Santos would secure a clear lead in the race to offtake gas from the region. Page 18.
--Zinc mining company OZ Minerals is boosting exploration work to speed expansion plans at Prominent Hill, the company's only remaining mine. 'We will recommence our exploration that we have had to defer and we will complete our studies into future underground and expanded pit production,' chairman Barry Cusack said last week. The new activity has been made possible by the sale of assets to China Minmetals Group, allowing the repayment of A$1.1 billion in debt. Page 19.
THE AGE (www.theage.com.au)
--Foreign banks remain a key source of finance for Australian business and need to be treated equally to domestic banks, according to the chief executive of banking group HBOS Australia.
David Smith said yesterday that it was harder to compete in the Australian market because domestic banks held dominant market share and also benefited from the Federal Government's funding guarantee. 'It's important that foreign bank players are treated with an even hand and level playing field so that we can give the Australian consumer choice,' Mr Smith said. Page B2.
--Consumer advocacy group Choice has confirmed it will proceed with its planned website to monitor grocery prices across the country. Chief executive Nick Stace said yesterday that the site would be launched on July 1, despite retailers refusal to supply data. 'Grocery Choice could and probably will transform the market for groceries,' Mr Stace claimed. The website has received A$13 million of government funding to help it collect and compare individual product prices at stores on a weekly basis. Page B3.
--Australia's biggest mortgage broker, Australian Finance Group, has been unsuccessful in its attempt to buy out minority shareholders. The Perth-based company launched its buyback last month and had hoped to acquire the 26 percent of its issued capital base for around A$7.3 million. However, investment bank Macquarie Group, the holder of a 10 percent stake, and insurers Allianz and Tower, who each hold a five percent stake, have elected not to sell. Page B3.
--Melbourne's auction clearance rate of 81 percent this weekend has been interpreted by some property analysts as a sign that the market may have weathered the worst of the financial crisis. Although the total number of auctions, 475, was almost 20 percent down on the same time last year, the high clearance rate was a reason for optimism according to some estate agents. Page B5. -- 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.