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)
Private equity group Wesfarmers is preparing to review its A$1 billion portfolio of hotels in all states except for Victoria and Tasmania. Wesfarmers managing director Richard Goyder and finance director Terry Bowen have been dissatisfied with the return on investment from the group?s 95 Coles hotels. Rival Woolworths has 280 hotels, 25 percent of which are owned by hotelier Bruce Mathieson. Woolworths chief executive Michael Luscombe has flagged more hotel acquisitions for the next 12 months. Page 13.
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Caltex Australia has appointed Incitec Pivot chief executive Julian Segal as the oil refining company?s new chief executive. The appointment was uncharacteristic of Caltex?s historical practice of appointing a secondee from 50 percent stakeholder Chevron. Mr Segal has promised to revamp Caltex?s 'comfortable? corporate culture, and push for stricter emissions targets in the Federal Government?s carbon pollution reduction scheme. He is now waiting for regulatory approval for Caltex?s A$300 million takeover of Mobil stations. Page 13.
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Discount airline Virgin Blue is facing legal action from its flight attendant staff over an expired enterprise agreement and replacement deals that its crew had twice rejected.
The Flight Attendants Association of Australia?s domestic division says it will fight the carrier?s application before Fair Work Australia. Virgin Blue group?s general manager people Richard Tanner defended the agreements, saying they gave improved productivity, better work and life balance and fair remuneration.
Page 13.
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Diversified transport infrastructure fund Australian Infrastructure Fund is expected to finalise its proposed ten percent stake sale in Melbourne Airport by October. The Hastings Fund Management unit, which has the Australian Stock Exchange code AIX, has appointed an adviser for the transaction involving airport owner Australia Pacific Airport Corporation. Macquarie analyst Ian Myles has questioned how AIX would use the proceeds, and believes the fund may undertake a share buyback due to the airport?s net and asset value. Page 15.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Northern Territory-based Tipperary and Litchfield cattle stations, owned by DPC Tipperary group, have been declared 'unsellable? after debt levels exceeded commercial silk Allan Myers QC?s asking price. Cattle company Australian Agricultural Co (AACo) had almost acquired the developments, but AACo shareholders who opposed the deal since April were successful in calling that the deal be voted down. Earlier this month, DPC Tipperary faced a Victoria Supreme Court battle between Mr Myers and former managers. Page 19.
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The Rudd Government fears that winding back its A$43 billion stimulus would be 'disastrous? to weakening parts of the economy.
However, Reserve Bank Governor Glenn Stevens agrees with Harvey Norman Chairman Gerry Harvey that the economy is 'growing stronger,? and flagged a possible interest rate rise before Christmas. Meanwhile, Deputy Prime Minister Julia Gillard has announced a further A$1.5 billion in Government funding for school halls, and Treasurer Wayne Swan has activated the OzCar scheme. Page 19.
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Deutsche Bank analysts say the Australian stock market could rise by ten percent, because share prices are below value compared to earnings growth forecasts for the next fiscal year.
The Dow Jones Industrial Average was down 0.4 percent, and the last round of earnings results are expected this week from PaperlinX and Elders. However, overall earnings per share only dropped by 15 percent from fiscal 2008. AMP Capital Investors Chief Economist Shane Oliver says Reserve Bank of Australia interest rates are likely to rise again. Page 20.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Receivers McGrathNicol have a deadline until March 31 to sell the remaining 715 childcare centres owned by failed ABC Learning.
McGrathNicol, acting on the behalf of banks who are owed A$1 billion, have undertaken a 'market testing process designed to solicit expression of interest from potential bidders.? The remaining centres are expected to sell for less than the A$1 billion owed, and the bank?s understand that they might not recoup all loses. Receivers have stated that sales contracts will be completed by February 2110. Page 19.
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Property fund ING Real Estate Entertainment Fund has admitted to investors that the fund is on the brink of breaching its banking covenants, if its portfolio devalues further or if tenants cannot meet rental obligations. ING, who has 36 pubs in its portfolio, says if the value of the pubs continue to fall and exceeds the 60 per cent ratio, the banks 'would have the right to require immediate repayment of debt and settlement of any derivatives entered into with it?. The banks can also act on its loan if ING or its tenants fails to pay their rent. Page 21.
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An unnamed financer has been blamed for what Owen Hegarty deems the 'unexpected and involuntary? sale of his entire stake in mining venture G-Resources. Mr Hegarty, former managing director of Oxiana and vice-chairman of G-Resources said 'I actually didn?t sell the shares; they were sold by the financier.? Mr Hegarty said he remained 100 percent committed to G-Resources and will soon look to replace the investment. This is the second time that Mr Hegarty has sold shares in a company due to financing arrangements. Page 21.
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THE AGE (www.theage.com.au)
Australia and New Zealand Banking Group (ANZ) will report its quarterly performance today, and is expected to reveal that impaired loans growth has considerably declined compared to the period between September 2008 and March this year. Analysts have downgraded ANZ?s provisioning charges forecast of a 20 percent increase from its A$1.4 billion reported for the first half of the year. ANZ?s non-performing loans were the lowest of all big four banks for the quarter. B 1.
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Financial services group Macquarie has announced that it had provided margin-lending services and a loan to the now collapsed Storm Financial. Macquarie says margin-lending losses were minimal, and the loan was repaid before Storm entered administration during January. Macquarie has not disclosed its margin-lending exposure, but it is understood to be worth about A$10 million. Meanwhile, 2,500 Commonwealth Bank customers are believed to have collectively lost hundreds of millions of dollars when Storm collapsed. B 1.
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Australian listed investment holding company Guinness Peat, owned by Ron Brierley, has bolstered its movement in the British beer and pubs market by attracting 300 investors in UK-based brewer and pub operator Adnams. Guinness, which now owns 8.9 percent of Admans, hopes to revamp the operator?s corporate strategy and wind up its dual share structure. In July, Guinness led a 'shareholder revolt? against UK brewer Daniel Thwaites? proposed sale of London?s Stafford Hotel for A$144.9 million.
B3.
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Beer and wine brewer Foster?s Group is preparing to reintroduce chardonnay to the Australian and New Zealand markets, and bolster the 'regional nature? of Australian wines. Foster?s Australasian wine division head David Dearie said there needs to be a message sent that Australian wines are not 'flabby.? Wine Australia head Paul Henry and the Federal Minister for Agriculture, Fisheries and Forestry will gather at Sydney Opera House to launch a new marketing campaign called Australia?s First Families of Wine. B 3.
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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)
Private equity group Wesfarmers is preparing to review its A$1 billion portfolio of hotels in all states except for Victoria and Tasmania. Wesfarmers managing director Richard Goyder and finance director Terry Bowen have been dissatisfied with the return on investment from the group?s 95 Coles hotels. Rival Woolworths has 280 hotels, 25 percent of which are owned by hotelier Bruce Mathieson. Woolworths chief executive Michael Luscombe has flagged more hotel acquisitions for the next 12 months. Page 13.
- - - -
Caltex Australia has appointed Incitec Pivot chief executive Julian Segal as the oil refining company?s new chief executive. The appointment was uncharacteristic of Caltex?s historical practice of appointing a secondee from 50 percent stakeholder Chevron. Mr Segal has promised to revamp Caltex?s 'comfortable? corporate culture, and push for stricter emissions targets in the Federal Government?s carbon pollution reduction scheme. He is now waiting for regulatory approval for Caltex?s A$300 million takeover of Mobil stations. Page 13.
- - - -
Discount airline Virgin Blue is facing legal action from its flight attendant staff over an expired enterprise agreement and replacement deals that its crew had twice rejected.
The Flight Attendants Association of Australia?s domestic division says it will fight the carrier?s application before Fair Work Australia. Virgin Blue group?s general manager people Richard Tanner defended the agreements, saying they gave improved productivity, better work and life balance and fair remuneration.
Page 13.
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Diversified transport infrastructure fund Australian Infrastructure Fund is expected to finalise its proposed ten percent stake sale in Melbourne Airport by October. The Hastings Fund Management unit, which has the Australian Stock Exchange code AIX, has appointed an adviser for the transaction involving airport owner Australia Pacific Airport Corporation. Macquarie analyst Ian Myles has questioned how AIX would use the proceeds, and believes the fund may undertake a share buyback due to the airport?s net and asset value. Page 15.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Northern Territory-based Tipperary and Litchfield cattle stations, owned by DPC Tipperary group, have been declared 'unsellable? after debt levels exceeded commercial silk Allan Myers QC?s asking price. Cattle company Australian Agricultural Co (AACo) had almost acquired the developments, but AACo shareholders who opposed the deal since April were successful in calling that the deal be voted down. Earlier this month, DPC Tipperary faced a Victoria Supreme Court battle between Mr Myers and former managers. Page 19.
- - - -
The Rudd Government fears that winding back its A$43 billion stimulus would be 'disastrous? to weakening parts of the economy.
However, Reserve Bank Governor Glenn Stevens agrees with Harvey Norman Chairman Gerry Harvey that the economy is 'growing stronger,? and flagged a possible interest rate rise before Christmas. Meanwhile, Deputy Prime Minister Julia Gillard has announced a further A$1.5 billion in Government funding for school halls, and Treasurer Wayne Swan has activated the OzCar scheme. Page 19.
- - - -
Deutsche Bank analysts say the Australian stock market could rise by ten percent, because share prices are below value compared to earnings growth forecasts for the next fiscal year.
The Dow Jones Industrial Average was down 0.4 percent, and the last round of earnings results are expected this week from PaperlinX and Elders. However, overall earnings per share only dropped by 15 percent from fiscal 2008. AMP Capital Investors Chief Economist Shane Oliver says Reserve Bank of Australia interest rates are likely to rise again. Page 20.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Receivers McGrathNicol have a deadline until March 31 to sell the remaining 715 childcare centres owned by failed ABC Learning.
McGrathNicol, acting on the behalf of banks who are owed A$1 billion, have undertaken a 'market testing process designed to solicit expression of interest from potential bidders.? The remaining centres are expected to sell for less than the A$1 billion owed, and the bank?s understand that they might not recoup all loses. Receivers have stated that sales contracts will be completed by February 2110. Page 19.
- - - -
Property fund ING Real Estate Entertainment Fund has admitted to investors that the fund is on the brink of breaching its banking covenants, if its portfolio devalues further or if tenants cannot meet rental obligations. ING, who has 36 pubs in its portfolio, says if the value of the pubs continue to fall and exceeds the 60 per cent ratio, the banks 'would have the right to require immediate repayment of debt and settlement of any derivatives entered into with it?. The banks can also act on its loan if ING or its tenants fails to pay their rent. Page 21.
- - - -
An unnamed financer has been blamed for what Owen Hegarty deems the 'unexpected and involuntary? sale of his entire stake in mining venture G-Resources. Mr Hegarty, former managing director of Oxiana and vice-chairman of G-Resources said 'I actually didn?t sell the shares; they were sold by the financier.? Mr Hegarty said he remained 100 percent committed to G-Resources and will soon look to replace the investment. This is the second time that Mr Hegarty has sold shares in a company due to financing arrangements. Page 21.
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THE AGE (www.theage.com.au)
Australia and New Zealand Banking Group (ANZ) will report its quarterly performance today, and is expected to reveal that impaired loans growth has considerably declined compared to the period between September 2008 and March this year. Analysts have downgraded ANZ?s provisioning charges forecast of a 20 percent increase from its A$1.4 billion reported for the first half of the year. ANZ?s non-performing loans were the lowest of all big four banks for the quarter. B 1.
- - - -
Financial services group Macquarie has announced that it had provided margin-lending services and a loan to the now collapsed Storm Financial. Macquarie says margin-lending losses were minimal, and the loan was repaid before Storm entered administration during January. Macquarie has not disclosed its margin-lending exposure, but it is understood to be worth about A$10 million. Meanwhile, 2,500 Commonwealth Bank customers are believed to have collectively lost hundreds of millions of dollars when Storm collapsed. B 1.
- - - -
Australian listed investment holding company Guinness Peat, owned by Ron Brierley, has bolstered its movement in the British beer and pubs market by attracting 300 investors in UK-based brewer and pub operator Adnams. Guinness, which now owns 8.9 percent of Admans, hopes to revamp the operator?s corporate strategy and wind up its dual share structure. In July, Guinness led a 'shareholder revolt? against UK brewer Daniel Thwaites? proposed sale of London?s Stafford Hotel for A$144.9 million.
B3.
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Beer and wine brewer Foster?s Group is preparing to reintroduce chardonnay to the Australian and New Zealand markets, and bolster the 'regional nature? of Australian wines. Foster?s Australasian wine division head David Dearie said there needs to be a message sent that Australian wines are not 'flabby.? Wine Australia head Paul Henry and the Federal Minister for Agriculture, Fisheries and Forestry will gather at Sydney Opera House to launch a new marketing campaign called Australia?s First Families of Wine. B 3.
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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.