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)
Australia-based airline Virgin Blue is expected to commence a A$250 million capital raising as early as this week.
The move comes after the airline?s recent trading halt in response to rumours earlier this month that it would undertake a A$400 million raising. Twenty five percent owner Richard Branson is likely to support the latest issue. Financial advisers Credit Suisse and JPMorgan have replaced Goldman Sachs JBWere in advising Virgin. Market observers say Virgin may wait until its results are announced on 25 August before commencing. Page 13.
- - - -
Trans-Tasman media group APN News & Media has been granted a second extension to repay its share of a 200 million euros (A$347 million) bond, associated with Irish media group Independent News & Media (INM). INM, which APN has a 32 percent stake in, has been given a 27 August deadline, after it was extended twice from 18 May. APN chairman Gavin O?Reilly said he hoped that a default on the bond was 'unlikely?. Earlier this year INM sold assets to reduce its 1.38 billion euros (A$2.4 billion) debt. Page 13.
- - - -
China?s state-owned agricultural company, Sinochem, has played down takeover talks with Australian crop protection business Nufarm as 'preliminary? and without 'certainty?. The Australian Stock Exchange made Nufarm reveal the takeover approach after the latter?s share price rose by A92 cents on Thursday, and a further A$1.28 on Friday. Sinochem is understood to be deciding on whether to undertake due diligence, and said there is a 'risk? that Nufarm?s year-end net operating profit will be 10-15 percent below the June 16 revised guidance.
Page 14.
- - - -
Australia-based networked gambling business Tatts Group has avoided a major competitive threat to its most profitable TAB retail operations in Queensland. The Office of Liquor and Gaming Regulation (OLGR) banned gaming business VenueNet - linked to Irish online bookmaker Sportsbet - from installing touch-screen betting kiosks in Queensland hotels and clubs because they breached several 'wagering regulations?.
VenueNet chairman John Thompson recently defended the kiosks, calling them a 'prototype? with 'good patronage?. Page 14.
- - - -
THE AUSTRALIAN (www.theaustralian.news.com.au)
According to analysts Australian companies will struggle to survive if corporate debt, estimated to be A$200 billion is not refinanced in the next three years. Mike Roche head of mergers and acquisitions at Deutsche Bank, said companies are trying to stay afloat, 'they are looking at all their options from asset sales to more corporate style transactions.? The infrastructure sector is the most worrying with more than A$31 billion in refinancing. Next in line is property with A$26 billion due to mature in the next few years. Page 19.
- - - -
Listed property trust Australand will report for the six months to June 30 a downturn in interim profit. The company warned in February that operating profit would be down around 25-30 percent from the last financial period. Deutsche Bank believes Australand will report a net profit of A$56.5 million, a decline of 46 percent from the previous six months. Australand stated that it would record an A$134 million pre-tax impairment after a fall in the high end residential market. Page 19.
- - - -
According to a review by Australian Fund Monitors, hedge funds outperformed the ASX 200 for the six months of June 30.
Long-short singles funds lost around 4.29 percent in value, while the ASX 200 fell by 24 percent. The survey found that St Helens Capital Ailsa Fund was the best performing hedge fund delivering 28.36 percent in value, after feed. Next came MQ Special Events Fund with 18.55 percent and in third place Fortitude Capital?s Absolute Return Trust with 11.96 percent.
Page 20.
- - - -
Australian airport operators have been accused of 'counterproductive gouging? for increasing charges while the industry endured the worst financial crisis in history. Tony Tyler chief executive of Cathay Pacific and chairman of the International Air Transport Association told guests at a Swinburne University of Technology dinner in Melbourne that he could not comprehend the move to increase charges at two capital city airports, though he declined to name the airports 'I am frankly astonished at the behaviour of both these airports? said Mr Tyler. Page 21.
- - - -
THE SYDNEY MORNING HERALD (www.smh.com.au)
Investment bank, Macquarie Group will need to 'reinvent itself?, as it prepares to report to investors on Wednesday. Analysts believe that the exiting of specialists funds by Macquarie will be a positive move for the group over the coming years. Over the last few years Macquarie has felt the pressure from its satellite funds weighing down the overall performance of the group. Credit Suisse analyst James Ellis said 'the internalisation of Macquarie Airports vividly illustrates the ongoing evolution of Macquarie Group?. Page 22.
- - - -
Canadian miner Teck Resources is looking at combining its North American coking coal business into a joint venture with an Australian miner with coal assets. Don Lindsay, chief executive of Teck said 'we think it would make a very very strong competitor in the world market. So we are open to those kinds of discussions, let me put it this way.? Mr Lindsay refused to name any companies for his joint venture plan, but Peabody Energy, Xstrata, Anglo American, Rio Tinto, BHP Billiton and Vale all posses coal assets. Page 23.
- - - -
A New Zealand court ruling has provided further details about the relationship between failed Australian childcare operator ABC Learning, Canungra Pastoral and entrepreneur Doug Lomas. According to the ruling, ABC gave Canungra a A$40 million loan to be drawn down each time Mr Lomas Berrytime companies found suitable childcare sites in New Zealand. In court, Canungra?s accountant failed to explain why ABC had given the company the loan if it was not an agent for the childcare provider. Page 23.
- - - -
THE AGE (www.theage.com.au)
Australia-based internet search provider Google is under scrutiny after its decision to enter the real estate listings market via Google Maps. Two of its major media customers, Fairfax Media and News Ltd, are considering whether to keep buying key search terms from Google. Fairfax website Domain and News? realestate.com.au generate A$144 million in advertising revenue annually, and fear losing millions of dollars due to the new listings. Fairfax New South Wales boss Lloyd Whish-Wilson said he was 'not keen to support a would-be competitor?. B1.
- - - -
Harvey Norman, the Australia-based retailer, is cutting back its 'no-deposit, interest-free? deals, financed by GE Money, in favour of 'more stable income streams?. Executive chairman Gerry Harvey said that offers have been reduced from four-year to one- or two-year periods since last year. The retailer has provided 1.5 million customers with A$3.8 billion of interest-free deals since 2004, and reported A$6 billion in sales this year - up by 3.8 percent compared to last year. B1.
- - - -
Australian agribusiness investment manager KordaMentha has asked the Federal Court to extend its deadline to 30 September, regarding its response to a legal dispute over Tibercorp?s growers? tree investments. The request would help the company decide whether to disclaim leases from landlords. About 10,000 growers have invested A$800 million in 100,000 hectares of blue gum plantations, but many failed to pay rent (worth A$27 million annually) by the 1 July deadline. Some landlords say they have a claim on the trees and have issued notices. B3.
- - - -
The Western Australian (WA) government has announced that it would reduce the state royalty from 10 to 5 percent on 'tight? gas from reservoirs needing mechanical or chemical 'stimulation?.
Similar incentives are also expected to be seen in eastern states, particularly in the Gippsland Basin where oil and gas explorer Lakes Oil wishes to supply Esso/Broken Hill Proprietry?s (BHP Billiton) Bass Strait gas fields. WA mines and petroleum minister Norman Moore said the tight gas industry had 'enormous potential? and authorities needed to remove 'hurdles?. 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)
Australia-based airline Virgin Blue is expected to commence a A$250 million capital raising as early as this week.
The move comes after the airline?s recent trading halt in response to rumours earlier this month that it would undertake a A$400 million raising. Twenty five percent owner Richard Branson is likely to support the latest issue. Financial advisers Credit Suisse and JPMorgan have replaced Goldman Sachs JBWere in advising Virgin. Market observers say Virgin may wait until its results are announced on 25 August before commencing. Page 13.
- - - -
Trans-Tasman media group APN News & Media has been granted a second extension to repay its share of a 200 million euros (A$347 million) bond, associated with Irish media group Independent News & Media (INM). INM, which APN has a 32 percent stake in, has been given a 27 August deadline, after it was extended twice from 18 May. APN chairman Gavin O?Reilly said he hoped that a default on the bond was 'unlikely?. Earlier this year INM sold assets to reduce its 1.38 billion euros (A$2.4 billion) debt. Page 13.
- - - -
China?s state-owned agricultural company, Sinochem, has played down takeover talks with Australian crop protection business Nufarm as 'preliminary? and without 'certainty?. The Australian Stock Exchange made Nufarm reveal the takeover approach after the latter?s share price rose by A92 cents on Thursday, and a further A$1.28 on Friday. Sinochem is understood to be deciding on whether to undertake due diligence, and said there is a 'risk? that Nufarm?s year-end net operating profit will be 10-15 percent below the June 16 revised guidance.
Page 14.
- - - -
Australia-based networked gambling business Tatts Group has avoided a major competitive threat to its most profitable TAB retail operations in Queensland. The Office of Liquor and Gaming Regulation (OLGR) banned gaming business VenueNet - linked to Irish online bookmaker Sportsbet - from installing touch-screen betting kiosks in Queensland hotels and clubs because they breached several 'wagering regulations?.
VenueNet chairman John Thompson recently defended the kiosks, calling them a 'prototype? with 'good patronage?. Page 14.
- - - -
THE AUSTRALIAN (www.theaustralian.news.com.au)
According to analysts Australian companies will struggle to survive if corporate debt, estimated to be A$200 billion is not refinanced in the next three years. Mike Roche head of mergers and acquisitions at Deutsche Bank, said companies are trying to stay afloat, 'they are looking at all their options from asset sales to more corporate style transactions.? The infrastructure sector is the most worrying with more than A$31 billion in refinancing. Next in line is property with A$26 billion due to mature in the next few years. Page 19.
- - - -
Listed property trust Australand will report for the six months to June 30 a downturn in interim profit. The company warned in February that operating profit would be down around 25-30 percent from the last financial period. Deutsche Bank believes Australand will report a net profit of A$56.5 million, a decline of 46 percent from the previous six months. Australand stated that it would record an A$134 million pre-tax impairment after a fall in the high end residential market. Page 19.
- - - -
According to a review by Australian Fund Monitors, hedge funds outperformed the ASX 200 for the six months of June 30.
Long-short singles funds lost around 4.29 percent in value, while the ASX 200 fell by 24 percent. The survey found that St Helens Capital Ailsa Fund was the best performing hedge fund delivering 28.36 percent in value, after feed. Next came MQ Special Events Fund with 18.55 percent and in third place Fortitude Capital?s Absolute Return Trust with 11.96 percent.
Page 20.
- - - -
Australian airport operators have been accused of 'counterproductive gouging? for increasing charges while the industry endured the worst financial crisis in history. Tony Tyler chief executive of Cathay Pacific and chairman of the International Air Transport Association told guests at a Swinburne University of Technology dinner in Melbourne that he could not comprehend the move to increase charges at two capital city airports, though he declined to name the airports 'I am frankly astonished at the behaviour of both these airports? said Mr Tyler. Page 21.
- - - -
THE SYDNEY MORNING HERALD (www.smh.com.au)
Investment bank, Macquarie Group will need to 'reinvent itself?, as it prepares to report to investors on Wednesday. Analysts believe that the exiting of specialists funds by Macquarie will be a positive move for the group over the coming years. Over the last few years Macquarie has felt the pressure from its satellite funds weighing down the overall performance of the group. Credit Suisse analyst James Ellis said 'the internalisation of Macquarie Airports vividly illustrates the ongoing evolution of Macquarie Group?. Page 22.
- - - -
Canadian miner Teck Resources is looking at combining its North American coking coal business into a joint venture with an Australian miner with coal assets. Don Lindsay, chief executive of Teck said 'we think it would make a very very strong competitor in the world market. So we are open to those kinds of discussions, let me put it this way.? Mr Lindsay refused to name any companies for his joint venture plan, but Peabody Energy, Xstrata, Anglo American, Rio Tinto, BHP Billiton and Vale all posses coal assets. Page 23.
- - - -
A New Zealand court ruling has provided further details about the relationship between failed Australian childcare operator ABC Learning, Canungra Pastoral and entrepreneur Doug Lomas. According to the ruling, ABC gave Canungra a A$40 million loan to be drawn down each time Mr Lomas Berrytime companies found suitable childcare sites in New Zealand. In court, Canungra?s accountant failed to explain why ABC had given the company the loan if it was not an agent for the childcare provider. Page 23.
- - - -
THE AGE (www.theage.com.au)
Australia-based internet search provider Google is under scrutiny after its decision to enter the real estate listings market via Google Maps. Two of its major media customers, Fairfax Media and News Ltd, are considering whether to keep buying key search terms from Google. Fairfax website Domain and News? realestate.com.au generate A$144 million in advertising revenue annually, and fear losing millions of dollars due to the new listings. Fairfax New South Wales boss Lloyd Whish-Wilson said he was 'not keen to support a would-be competitor?. B1.
- - - -
Harvey Norman, the Australia-based retailer, is cutting back its 'no-deposit, interest-free? deals, financed by GE Money, in favour of 'more stable income streams?. Executive chairman Gerry Harvey said that offers have been reduced from four-year to one- or two-year periods since last year. The retailer has provided 1.5 million customers with A$3.8 billion of interest-free deals since 2004, and reported A$6 billion in sales this year - up by 3.8 percent compared to last year. B1.
- - - -
Australian agribusiness investment manager KordaMentha has asked the Federal Court to extend its deadline to 30 September, regarding its response to a legal dispute over Tibercorp?s growers? tree investments. The request would help the company decide whether to disclaim leases from landlords. About 10,000 growers have invested A$800 million in 100,000 hectares of blue gum plantations, but many failed to pay rent (worth A$27 million annually) by the 1 July deadline. Some landlords say they have a claim on the trees and have issued notices. B3.
- - - -
The Western Australian (WA) government has announced that it would reduce the state royalty from 10 to 5 percent on 'tight? gas from reservoirs needing mechanical or chemical 'stimulation?.
Similar incentives are also expected to be seen in eastern states, particularly in the Gippsland Basin where oil and gas explorer Lakes Oil wishes to supply Esso/Broken Hill Proprietry?s (BHP Billiton) Bass Strait gas fields. WA mines and petroleum minister Norman Moore said the tight gas industry had 'enormous potential? and authorities needed to remove 'hurdles?. 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.