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)
Wine company Constellation Australia could undergo further restructuring, since its New York-based parent will split its Australia-based business. Australian wine operations head Troy Christensen says he will reveal the new structure in a fortnight that will see further integration of Constellation?s Australia- and Europe-based businesses. The company is rumoured to be holding takeover talks with competitor Australian Vintage, whose market capitalisation has dwindled from A$140 million to A$22 million in the past 12 months. Page 13.
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On average, Australian consumers spent a record A$172.80 on house-brand groceries for the first three months to 13 June 2009, a Nielson Company report revealed. About 99 percent of consumers bought at least one house-brand product, while supermarket chains Woolworths and Coles have added more house brands, such as Select and You?ll Love Coles. 'What the economic downturn has done is reinforced their positioning as an attractive, cheaper alternative,? says Nielson retailer services executive director Kosat Conomos. Page 13.
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Geothermal energy company Granite Power is preparing to undertake an A$50 million initial public offering (IPO). Chief executive Stephen de Belle, formerly of Midwest Corporation, has seen renewed Australian and European interest in IPOs, and noted the existence of other listed geothermal companies in Australia.
Granite Power has alliances with Germany-based firms Herrenknecht and Angers Sohne, and a worldwide patent application for a University of Newcastle technology development called Granex. Page 14.
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Gold miner Avoca Resources is considering to extend its takeover bid for competitor Dioro Exploration.
Avoca managing director Rohan Williams says the extended offer still needs to be discussed with his board, but sources claim the bid will be extended because Avoca is likely to keep pursuing Dioro, after rival bidder Ramelius Resources releases its bidder?s statement 'very soon.? Euroz Securities analyst Jon Bishop says the bidding is in favour of Avoca due to Ramelius? low production base and uncertain future earnings. Page 14.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The Reserve Bank of Australia (RBA) has explained in its quarterly review of the local economy that it 'was cautious in its outlook for consumption, noting that the rise in wealth would be offset by falling incomes as unemployment rose.? Data in the coming months should provide a clearer picture of the strength of consumer spending, any rise would give the RBA the tools to increase interest rates before the end of the year. The Australian Bureau of Statistics has seen an increase of two percent in sales in June, the best result in two years. Page 19.
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The Australian Prudential Regulation Authority will meet this week with more than 25 credit unions, who seek approval to setup a A$1 billion liquidity fund to be financed by superannuation funds. If the fund does get the approval it will give credit unions an alternative foundation of funding to compete in home lending. According to Mark Genovese chief executive of Maritime Mining Power Credit union 'more than 90 per cent of all home loans are now written by the big for four (banks).? Page 19.
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According to Michael Cameron chief executive of GPT property group, the company has no plans to merge and it has held no talks with shareholder Stockland. There was talk of a merger after Stockland took a 12.7 percent stake in GPT. 'There has been a lot of discussion about potential mergers, but I haven?t had any talks discussions with Stockland about potential mergers with GPT, and it?s not on my radar? said Mr Cameron. GPT announced last week that it would concentrate on its Australian assets and shed all of its overseas assets. Page 21.
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Miner Rio Tinto Diamonds will begin pre-feasibility study at its Bunder mine in India next year at a cost of A$75 million.
Managing director of Rio Tinto Diamonds Bruce Cox stated that the mine could produce between two to three million carats of diamond a year. Over the last five years the company has spent around A$20 million in the mine. Apart from exploring the Bunder mine in the state of Madhya Pradesh, Rio will also look at further exploration opportunities in other states, and the likelihood of entering the retail diamonds sales market in the country. Page 21.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Commonwealth Bank of Australia (CBA) has resolved a A$2.1 billion dispute over its acquisition of Perth-based BankWest, which experienced higher-than-anticipated bad debts.
Former BankWest owner HBOS, owned by British rival Lloyds, reportedly gave CBA a discount on the sum paid for BankWest last year. The revised deal is confidential, but CBA is believed to have claimed at least A$200 million from Lloyds, after BankWest slid from an A$185 million profit to an A$139 million loss in the year to 31 December. Page 21.
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Gaming company Tabcorp will face an additional A$65 million in race fields fees each year, unless it wins a legal dispute against gaming body Racing Victoria. Fees have risen from A$20 million to A$30 million, and will rise to A$55 million from 2012; legal fees will bring total costs to A$65 million. Tabcorp chief executive Elmer Funke Kupper says the final figure was a 'worst case? scenario. Citi analyst Jenny Owen says the additional financial burden would make her earnings forecast for Tabcorp drop by six percent. Page 12.
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The Australian Securities and Investment Commission (ASIC) chairman Tony D?Aloisio has called for a debate about financial services regulation philosophy. It will focus on investments, managed investment schemes, mortgage trusts and unlisted property trusts. D?Aloisio expects to face criticism for ASIC?s inaction during the collapse of financial planner Storm Financial, and managed investment schemes Timbercorp and Great Southern. He says ASIC should not be blamed for policy settings that underpin its powers. Page 22.
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THE AGE (www.theage.com.au)
A committee from sugar-cane grower body Canegrowers plans to raise about A$100 million to acquire a 10 percent stake in CSR Sugar, which will separate from CSR?s building and aluminium businesses in March 2010. Goldman Sachs JBWere and Lazard are advising the group on the financial aspects. Other groups believed to be interested in CSR Sugar, include UK-based British Sugar, Brazil-based sugar cane producer Cosan, US-based private group Cargill, South Korean conglomerate CJ Corporation, and Guinness Peat. B1.
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Supermarket landlords are threatening to challenge supermarket chain Coles, owned by private equity company Wesfarmers, over its proposed store lease transfer to FoodWorks. Owner-operated store chain FoodWorks is not perceived as being able to provide the same income security as Coles. The Australian Competition and Consumer Commission has approved the transfer of 45 Coles leases for A$35 million, but the deal is pending shareholder approval. Discount chain Franklins previously leased interests to Coles. B1.
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The global recession has caused the first drop in chief executive pay in more than one decade, a Hay Group survey revealed. Respondents indicated an average 6.8 percent decline in pay during the year to May, which Hays Group executive reward consulting head Trevor Warden attributed to a drop in profitability, and rise in performance-driven bonuses.
Telecommunications company Telstra, private equity company Wesfarmers, Australia and New Zealand Banking Group and Tabcorp have issued senior management pay freezes. B1.
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Tiger Airways will refocus its strategy in order to compete with Qantas and Virgin, and soon will stop flying out of Canberra. The Singapore Airline funded airline will not offer flights between Canberra and either Melbourne or Adelaide from early October. Shelley Roberts managing director for Tiger, said the airline was reviewing its plan for its services to the nation?s capital. Tiger has increased its flight services between Sydney and Melbourne to up to four services a day.
Qantas? low carrier Jetstar has responded by doubling its service between Sydney and Adelaide. B2.
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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)
Wine company Constellation Australia could undergo further restructuring, since its New York-based parent will split its Australia-based business. Australian wine operations head Troy Christensen says he will reveal the new structure in a fortnight that will see further integration of Constellation?s Australia- and Europe-based businesses. The company is rumoured to be holding takeover talks with competitor Australian Vintage, whose market capitalisation has dwindled from A$140 million to A$22 million in the past 12 months. Page 13.
- - - -
On average, Australian consumers spent a record A$172.80 on house-brand groceries for the first three months to 13 June 2009, a Nielson Company report revealed. About 99 percent of consumers bought at least one house-brand product, while supermarket chains Woolworths and Coles have added more house brands, such as Select and You?ll Love Coles. 'What the economic downturn has done is reinforced their positioning as an attractive, cheaper alternative,? says Nielson retailer services executive director Kosat Conomos. Page 13.
- - - -
Geothermal energy company Granite Power is preparing to undertake an A$50 million initial public offering (IPO). Chief executive Stephen de Belle, formerly of Midwest Corporation, has seen renewed Australian and European interest in IPOs, and noted the existence of other listed geothermal companies in Australia.
Granite Power has alliances with Germany-based firms Herrenknecht and Angers Sohne, and a worldwide patent application for a University of Newcastle technology development called Granex. Page 14.
- - - -
Gold miner Avoca Resources is considering to extend its takeover bid for competitor Dioro Exploration.
Avoca managing director Rohan Williams says the extended offer still needs to be discussed with his board, but sources claim the bid will be extended because Avoca is likely to keep pursuing Dioro, after rival bidder Ramelius Resources releases its bidder?s statement 'very soon.? Euroz Securities analyst Jon Bishop says the bidding is in favour of Avoca due to Ramelius? low production base and uncertain future earnings. Page 14.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The Reserve Bank of Australia (RBA) has explained in its quarterly review of the local economy that it 'was cautious in its outlook for consumption, noting that the rise in wealth would be offset by falling incomes as unemployment rose.? Data in the coming months should provide a clearer picture of the strength of consumer spending, any rise would give the RBA the tools to increase interest rates before the end of the year. The Australian Bureau of Statistics has seen an increase of two percent in sales in June, the best result in two years. Page 19.
- - - -
The Australian Prudential Regulation Authority will meet this week with more than 25 credit unions, who seek approval to setup a A$1 billion liquidity fund to be financed by superannuation funds. If the fund does get the approval it will give credit unions an alternative foundation of funding to compete in home lending. According to Mark Genovese chief executive of Maritime Mining Power Credit union 'more than 90 per cent of all home loans are now written by the big for four (banks).? Page 19.
- - - -
According to Michael Cameron chief executive of GPT property group, the company has no plans to merge and it has held no talks with shareholder Stockland. There was talk of a merger after Stockland took a 12.7 percent stake in GPT. 'There has been a lot of discussion about potential mergers, but I haven?t had any talks discussions with Stockland about potential mergers with GPT, and it?s not on my radar? said Mr Cameron. GPT announced last week that it would concentrate on its Australian assets and shed all of its overseas assets. Page 21.
- - - -
Miner Rio Tinto Diamonds will begin pre-feasibility study at its Bunder mine in India next year at a cost of A$75 million.
Managing director of Rio Tinto Diamonds Bruce Cox stated that the mine could produce between two to three million carats of diamond a year. Over the last five years the company has spent around A$20 million in the mine. Apart from exploring the Bunder mine in the state of Madhya Pradesh, Rio will also look at further exploration opportunities in other states, and the likelihood of entering the retail diamonds sales market in the country. Page 21.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Commonwealth Bank of Australia (CBA) has resolved a A$2.1 billion dispute over its acquisition of Perth-based BankWest, which experienced higher-than-anticipated bad debts.
Former BankWest owner HBOS, owned by British rival Lloyds, reportedly gave CBA a discount on the sum paid for BankWest last year. The revised deal is confidential, but CBA is believed to have claimed at least A$200 million from Lloyds, after BankWest slid from an A$185 million profit to an A$139 million loss in the year to 31 December. Page 21.
- - - -
Gaming company Tabcorp will face an additional A$65 million in race fields fees each year, unless it wins a legal dispute against gaming body Racing Victoria. Fees have risen from A$20 million to A$30 million, and will rise to A$55 million from 2012; legal fees will bring total costs to A$65 million. Tabcorp chief executive Elmer Funke Kupper says the final figure was a 'worst case? scenario. Citi analyst Jenny Owen says the additional financial burden would make her earnings forecast for Tabcorp drop by six percent. Page 12.
- - - -
The Australian Securities and Investment Commission (ASIC) chairman Tony D?Aloisio has called for a debate about financial services regulation philosophy. It will focus on investments, managed investment schemes, mortgage trusts and unlisted property trusts. D?Aloisio expects to face criticism for ASIC?s inaction during the collapse of financial planner Storm Financial, and managed investment schemes Timbercorp and Great Southern. He says ASIC should not be blamed for policy settings that underpin its powers. Page 22.
- - - -
THE AGE (www.theage.com.au)
A committee from sugar-cane grower body Canegrowers plans to raise about A$100 million to acquire a 10 percent stake in CSR Sugar, which will separate from CSR?s building and aluminium businesses in March 2010. Goldman Sachs JBWere and Lazard are advising the group on the financial aspects. Other groups believed to be interested in CSR Sugar, include UK-based British Sugar, Brazil-based sugar cane producer Cosan, US-based private group Cargill, South Korean conglomerate CJ Corporation, and Guinness Peat. B1.
- - - -
Supermarket landlords are threatening to challenge supermarket chain Coles, owned by private equity company Wesfarmers, over its proposed store lease transfer to FoodWorks. Owner-operated store chain FoodWorks is not perceived as being able to provide the same income security as Coles. The Australian Competition and Consumer Commission has approved the transfer of 45 Coles leases for A$35 million, but the deal is pending shareholder approval. Discount chain Franklins previously leased interests to Coles. B1.
- - - -
The global recession has caused the first drop in chief executive pay in more than one decade, a Hay Group survey revealed. Respondents indicated an average 6.8 percent decline in pay during the year to May, which Hays Group executive reward consulting head Trevor Warden attributed to a drop in profitability, and rise in performance-driven bonuses.
Telecommunications company Telstra, private equity company Wesfarmers, Australia and New Zealand Banking Group and Tabcorp have issued senior management pay freezes. B1.
- - - -
Tiger Airways will refocus its strategy in order to compete with Qantas and Virgin, and soon will stop flying out of Canberra. The Singapore Airline funded airline will not offer flights between Canberra and either Melbourne or Adelaide from early October. Shelley Roberts managing director for Tiger, said the airline was reviewing its plan for its services to the nation?s capital. Tiger has increased its flight services between Sydney and Melbourne to up to four services a day.
Qantas? low carrier Jetstar has responded by doubling its service between Sydney and Adelaide. B2.
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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.