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)
--Drug manufacturer Sigma Pharmaceuticals yesterday announced it had purchased a portfolio of 15 pharmaceutical and health-care brands, as well as a manufacturing facility in Melbourne, from United States company Bristol-Myers Squibb . Sigma also announced that it is undertaking a A$297 million capital raising, with shares to be offered at a 16 percent discount to Friday's closing price. The funds will be used to reduce debt and allow the company to consider further acquisitions. Page 17.
--Investment fund Macquarie Airports' proposed deal to sever management ties with parent Macquarie Group was yesterday approved by independent auditors KPMG. The fund's independent board committee chairman Trevor Gerber said of the A$345 million agreement, 'most security holders have said it's a full price but acceptable in the circumstances.' Merrill Lynch analyst Matthew Spence said the proposal from Macquarie Group 'is more about what you are prepared to pay us so we don't kick up a stink.' Page 17.
--Two Australian iron ore mining companies, United Minerals Corp and FerrAus, yesterday entered trading halts ahead of significant deals, which are both believed to involve investment from Chinese groups. Chinese interests have been looking to enter Australia's iron ore sector over the past year, as they attempt to secure supply of the commodity from companies other than major miners BHP Billiton and Rio Tinto. Mining companies Aquila Resources and Fortescue Metals Group have already secured funds from Chinese groups this year. Page 17.
--Wine group Australian Vintage yesterday said that revenues for the year to the end of June had risen 8.8 percent to A$288.3 million, with chief executive Dane Hudson saying that cash flow is also expected to continue improving this year. Mr Hudson said three years of restructuring, which has included cutting the group's grape intake by 50,000 tonnes, had led to demand exceeding supply 'for the first time.' Australian Vintage's share price yesterday closed at A32 cents, up from its July 31 low of A12.5 cents. Page 19.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--The Australian Prudential Regulation Authority (APRA) yesterday released its second consultation package on executive remuneration in the banking and insurance sectors. The regulator raised the possibility of using deferred payments to allow financial companies' board remuneration committees the time needed to 'reliably' measure executive performance. However, APRA also acknowledged concerns from within the industry that the issue of pay levels has been given undue prominence following the financial crisis. Page 19.
--Solar Systems Pty Ltd, Australia's most prominent solar energy company, has been placed into voluntary administration after talks aimed at securing an equity injection of between A$50 million and A$100 million failed. The company had received promises of A$129 million in funding from Australian governments to build a large scale solar power station in Victoria, which was due to start construction next year. Solar Systems is believed to have accumulated losses of A$74 million. Page 19.
--Construction group Leighton Holdings yesterday indicated that Wal King, the company's chief executive since 1977, may remain in his role beyond his current contract term, which expires at the end of June next year. Leighton has recently promoted David Stewart from a role at Leighton subsidiary John Holland to become chief operating officer at Leighton. News that Mr King is likely to extend his involvement with the group saw Leighton shares rise A24 cents yesterday to close at A$37.14. Page 20.
--Industry body the Association of Superannuation Funds of Australia will today announce a series of indices which will allow funds to compare their performance with that of the sharemarket on an after-tax basis. The new indices, which have been developed with data provider FTSE, are intended to provide a more accurate picture of funds' performance, and are also intended to push super fund managers to handle their members' funds more tax effectively. Page 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--The Australian dollar yesterday reached US85.39 cents, its highest level since the financial crisis worsened last September.
The increase has been driven by a growing expectation that the Reserve Bank of Australia will become the first central bank to start raising interest rates, potentially within the next few months. An increasing number of currency analysts now say that the Australian dollar will continue climbing, however, it is unlikely to reach last year's high of US98.7 cents. Page 21.
--A subsidiary of construction group Leighton Holdings, Thiess John Holland Construction, yesterday started legal action against toll road operator ConnectEast. In a claim filed with the Victorian Supreme Court, Thiess said that ConnectEast had misled the company by providing inflated traffic forecasts for Melbourne's EastLink toll road. Thiess, which constructed the road, said it had incurred higher costs as the forecasts had encouraged it to accelerate the completion of the road, and is expected to seek A$400 million in damages. Page 21.
--Airline Qantas Airways has increased freight surcharges due to higher jet fuel prices, a move that might see fuel levies raised on commercial airline tickets. Airlines are likely to raise levies following Japan Airlines and All Nippon Airways announcement that from October 1 it will reinstate fuel surcharges on international flights. Qantas has told its freight customers that an increase of 14 percent to US71 cents a kilogram between the United States and Australia will apply from September 16. Page 22.
--Creditors have voted to liquidate entertainment company Arena Management, the former operator of the Sydney Entertainment Centre. Voters rejected three alternative deed of company arrangements, including a proposal that would have seen veteran promoter Kevin Jacobsen take charge of the company. Randall Joubert, who has been voluntary administrator since July 31, will now have extra powers to investigate allegations that the company traded while insolvent. Page 23.
THE AGE (www.theage.com.au)
--Australian Federal Treasurer Wayne Swan has become the first treasurer in seven years to visit India, as part of the Government's 'charm offensive.' Mr Swan, on a one-day visit, aims to bring both nations closer. 'The most important objective I have from this visit is to indicate that we want to ratchet up our level of engagement, and the first step in that process is this visit,' said Mr Swan. India is becoming one of Australia's fastest growing trading partners, and is a consumer of coal, natural gas and education services. B2.
--Investors have decided that gold mining company Lihir Gold will make Perseus Mining its acquisition target. Lihir has made no statement regarding its position on Perseus. Shares in Perseus yesterday climbed 19 percent or A17.5 cents to A$1.09.
Analysts believe that Perseus meets all of Lihir's 'strategic assessment criteria' including operations, mine life, location and cost. Lihir has said it will only look at acquisitions that can produce 200,000 ounces of gold annually. B3.
--National Australia Bank (NAB) has quelled any rumours that it plans to take over Suncorp-Metway in a A$10 billion bid. Shares in Suncorp yesterday rose 3.6 percent or A29 cents to A$8.24 after 'the substantial shareholder notice was lodged by various NAB companies and associates.' The disclosure of a 7 percent stake in Suncorp by NAB awakened the interest of some investors as Suncorp has been tipped to be the next bank to be absorbed as part of the recent consolidation in the banking sector. 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)
--Drug manufacturer Sigma Pharmaceuticals yesterday announced it had purchased a portfolio of 15 pharmaceutical and health-care brands, as well as a manufacturing facility in Melbourne, from United States company Bristol-Myers Squibb . Sigma also announced that it is undertaking a A$297 million capital raising, with shares to be offered at a 16 percent discount to Friday's closing price. The funds will be used to reduce debt and allow the company to consider further acquisitions. Page 17.
--Investment fund Macquarie Airports' proposed deal to sever management ties with parent Macquarie Group was yesterday approved by independent auditors KPMG. The fund's independent board committee chairman Trevor Gerber said of the A$345 million agreement, 'most security holders have said it's a full price but acceptable in the circumstances.' Merrill Lynch analyst Matthew Spence said the proposal from Macquarie Group 'is more about what you are prepared to pay us so we don't kick up a stink.' Page 17.
--Two Australian iron ore mining companies, United Minerals Corp and FerrAus, yesterday entered trading halts ahead of significant deals, which are both believed to involve investment from Chinese groups. Chinese interests have been looking to enter Australia's iron ore sector over the past year, as they attempt to secure supply of the commodity from companies other than major miners BHP Billiton and Rio Tinto. Mining companies Aquila Resources and Fortescue Metals Group have already secured funds from Chinese groups this year. Page 17.
--Wine group Australian Vintage yesterday said that revenues for the year to the end of June had risen 8.8 percent to A$288.3 million, with chief executive Dane Hudson saying that cash flow is also expected to continue improving this year. Mr Hudson said three years of restructuring, which has included cutting the group's grape intake by 50,000 tonnes, had led to demand exceeding supply 'for the first time.' Australian Vintage's share price yesterday closed at A32 cents, up from its July 31 low of A12.5 cents. Page 19.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--The Australian Prudential Regulation Authority (APRA) yesterday released its second consultation package on executive remuneration in the banking and insurance sectors. The regulator raised the possibility of using deferred payments to allow financial companies' board remuneration committees the time needed to 'reliably' measure executive performance. However, APRA also acknowledged concerns from within the industry that the issue of pay levels has been given undue prominence following the financial crisis. Page 19.
--Solar Systems Pty Ltd, Australia's most prominent solar energy company, has been placed into voluntary administration after talks aimed at securing an equity injection of between A$50 million and A$100 million failed. The company had received promises of A$129 million in funding from Australian governments to build a large scale solar power station in Victoria, which was due to start construction next year. Solar Systems is believed to have accumulated losses of A$74 million. Page 19.
--Construction group Leighton Holdings yesterday indicated that Wal King, the company's chief executive since 1977, may remain in his role beyond his current contract term, which expires at the end of June next year. Leighton has recently promoted David Stewart from a role at Leighton subsidiary John Holland to become chief operating officer at Leighton. News that Mr King is likely to extend his involvement with the group saw Leighton shares rise A24 cents yesterday to close at A$37.14. Page 20.
--Industry body the Association of Superannuation Funds of Australia will today announce a series of indices which will allow funds to compare their performance with that of the sharemarket on an after-tax basis. The new indices, which have been developed with data provider FTSE, are intended to provide a more accurate picture of funds' performance, and are also intended to push super fund managers to handle their members' funds more tax effectively. Page 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--The Australian dollar yesterday reached US85.39 cents, its highest level since the financial crisis worsened last September.
The increase has been driven by a growing expectation that the Reserve Bank of Australia will become the first central bank to start raising interest rates, potentially within the next few months. An increasing number of currency analysts now say that the Australian dollar will continue climbing, however, it is unlikely to reach last year's high of US98.7 cents. Page 21.
--A subsidiary of construction group Leighton Holdings, Thiess John Holland Construction, yesterday started legal action against toll road operator ConnectEast. In a claim filed with the Victorian Supreme Court, Thiess said that ConnectEast had misled the company by providing inflated traffic forecasts for Melbourne's EastLink toll road. Thiess, which constructed the road, said it had incurred higher costs as the forecasts had encouraged it to accelerate the completion of the road, and is expected to seek A$400 million in damages. Page 21.
--Airline Qantas Airways has increased freight surcharges due to higher jet fuel prices, a move that might see fuel levies raised on commercial airline tickets. Airlines are likely to raise levies following Japan Airlines and All Nippon Airways announcement that from October 1 it will reinstate fuel surcharges on international flights. Qantas has told its freight customers that an increase of 14 percent to US71 cents a kilogram between the United States and Australia will apply from September 16. Page 22.
--Creditors have voted to liquidate entertainment company Arena Management, the former operator of the Sydney Entertainment Centre. Voters rejected three alternative deed of company arrangements, including a proposal that would have seen veteran promoter Kevin Jacobsen take charge of the company. Randall Joubert, who has been voluntary administrator since July 31, will now have extra powers to investigate allegations that the company traded while insolvent. Page 23.
THE AGE (www.theage.com.au)
--Australian Federal Treasurer Wayne Swan has become the first treasurer in seven years to visit India, as part of the Government's 'charm offensive.' Mr Swan, on a one-day visit, aims to bring both nations closer. 'The most important objective I have from this visit is to indicate that we want to ratchet up our level of engagement, and the first step in that process is this visit,' said Mr Swan. India is becoming one of Australia's fastest growing trading partners, and is a consumer of coal, natural gas and education services. B2.
--Investors have decided that gold mining company Lihir Gold will make Perseus Mining its acquisition target. Lihir has made no statement regarding its position on Perseus. Shares in Perseus yesterday climbed 19 percent or A17.5 cents to A$1.09.
Analysts believe that Perseus meets all of Lihir's 'strategic assessment criteria' including operations, mine life, location and cost. Lihir has said it will only look at acquisitions that can produce 200,000 ounces of gold annually. B3.
--National Australia Bank (NAB) has quelled any rumours that it plans to take over Suncorp-Metway in a A$10 billion bid. Shares in Suncorp yesterday rose 3.6 percent or A29 cents to A$8.24 after 'the substantial shareholder notice was lodged by various NAB companies and associates.' The disclosure of a 7 percent stake in Suncorp by NAB awakened the interest of some investors as Suncorp has been tipped to be the next bank to be absorbed as part of the recent consolidation in the banking sector. 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.