Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
Compiler corrects item on Minmetals from the AGE digest.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
--Target managing director Launa Inman has committed to being more competitive with respect to the discount department store's struggle to win the 'middle Australian customer.' The move comes following a growing market threat from department store Myer, which has attempted to offer products at the bottom end of rival David Jones and top end of Target. CLSA analyst Daniel Broeren has predicted that new store openings will create 'minimal value' for investors, and the business is not 'priced to go.' Page 14.
--In this coming week, Rio Tinto's shareholders will liaise with the mining giant's chairman, Jan du Plessis, about a new Pilbara iron ore joint venture with rival BHP Billiton. The expected move comes six months after China-based Chinalco's failed US$19.5 billion (A$21.15 billion) bid for Rio. One BHP board member said that it has become harder to defend paying a premium for a 100 percent takeover of Rio, due to its iron ore assets being tied up to its joint venture. Page 14.
--Resources company Rex Minerals will undertake a A$42 million rights offer in order to fund an evaluation of its South Australia-based Hillside copper discovery. The site has been compared with OZ Minerals' Prominent Hill mine, and it is rumoured that EL&C Baillieu Stockbroking has underwritten the three-for-ten rights offer at A$1.70 per share. Other major copper discoveries include Western Australia-based Sandfire Resources' Doolgunna project, and Queensland-based Cudeco's Rocklands project. Page 15.
--Gold miner Troy Resources' independent chairman, John Dow, -- formerly Newmont Mining's managing director -- has observed a dispute between major investor John Jones, former chairman Paul Benson, and board members Alan Naylor and Denis Clarke. Mr Jones has indicated that he would like to replace them with his own candidates. Patersons Securities analyst Josh Welch says that Troy's performance has been positive, following its acquisition of the Argentina-based Casposo gold project.
Page 15.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--Federal Assistant Treasurer Nick Sherry has warned China-based businesses not to view the conditional approval of Yanzhou Coal's A$3.5 billion acquisition of Felix Resources, as an example for other investment in Australian resources companies. The deal has been allowed on the condition that Yanzhou floats at least 30 percent of Felix and other Australian assets on the Australian Securities Exchange by the end of 2012. The Foreign Investment Review Board prefers not to allow foreign state-run companies to secure controlling stakes. Page 21.
--The development of oil giant Chevron's proposed West Australia-based Wheatstone liquefied natural gas project will cost more than US$20 billion (A$21.5 billion). Apache released the data after abandoning Woodside Petroleum for a more favourable deal with Chevron. Chevron says that it has secured gas supply from the Julimar and Brunello fields that are owned by Apache and Kuwait Foreign Petroleum Exploration Company in exchange for a 25 percent interest in Wheatstone. Page 21.
--Deloitte Touche Tohmatsu has disclosed that it made A$5.6 million from its appointment as receiver of collapse stockbroker Opes Prime. The fees were paid by secured lender Australian and New Zealand Banking Group (ANZ). The collapse of Opes saw A$1.5 billion worth of investor shares seized by ANZ and Merrill Lynch, which sold them to repay secured loans. ANZ and Merrill invested A$253 million into a fund to be distributed to creditors, but with the condition that no further litigation was pursued. Page 21.
--The Federal Government is believed to be moving away from its tough legislative threat against Telstra, if a deal can be brokered on the A$43 billion national broadband network. Telstra and the Opposition are calling on the Government to halt the bill until the New Year. The Senate will commence consideration on the Government's telecommunication reforms, but there are suggestions that Telstra has been given six weeks to negotiate and agreement or face tough reforms under the current bill. Page 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--Opposition Leader Malcolm Turnbull has criticised the Federal Government's national broadband network for failing to undertake a cost-benefit analysis of the plan. The scrutiny comes following warnings from telecommunications companies that delaying legislation to force a split of Telstra would leave them unable to guarantee regional services and consumer protection. 'History is littered with cases of the build it and they will come mindset, such as Sydney's cross-city tunnel and the rush to lay deep-sea cables,' Mr Turnbull says. Page 3.
--Investment services provider Trio Capital has commenced processing investor redemption requests, following an investigation into its funds from the Australian Securities and Investments Commission. The funds in question include Astarra Strategic Fund led by Shawn Richard and Eugene Liu, which invested in US hedge funds via British Virgin Islands-based EMA International. A spokesman says that investors are allowed to receive redemptions but could not confirm whether redemptions would last indefinitely. Page 3.
--A class action against Australia-based health-care company CSL, and chief US rival Baxter, has expanded, with an additional 11 US-based hospitals joining as plaintiffs. Hospitals Northwest Iowa, St Luke's Methodist, Detroit Medical Centre, and Trinity Regional Medical, are seeking at least A$100 million in damages, and a trial by jury for engaging cartel behaviour. A CSL spokeswoman says the company will defend the litigation, and is not surprised by the additional plaintiffs that have joined the action because it is a common phenomena in the US legal system. Page 5.
THE AGE (www.theage.com.au)
--Construction and property company Grollo has changed quite rapidly, since the days when founder Bruno Grollo ran the headquarters in Preston, Melbourne. Today the company is managed by brothers Daniel and Adam, who are trying to expand the company throughout Asia, the Middle East and United States. The company now has an office in New York, where Daniel will be based one week per month. There are plans to list a funds management business, and to takeover Multiplex Prime Property Fund. B2.
--There is no deadline for a partial float of Minmetals' Melbourne-based subsidiary, Minerals and Metals Group (MMG), the latter's chief executive Andrew Michelmore said yesterday. China's Minmetals was very committed to improving transparency, Mr Michelmore said, citing a Beijing directive to state-owned entities to make equity available to investors in host countries. MMG was launched in June after it paid A$1.73 billion for the key mining assets of OZ Minerals. Minmetals intends to float off a quarter-stake in the local unit. Page B5.
--Three of the four banks will post a fall in earnings between 9 and 20 percent per share. Westpac Banking Corporation , Australia and New Zealand Baking Group and National Australia Bank will report an average drop of 15 percent in earnings per share this coming month, as rising debts and dilution from fund raising bite into forecasts. Analysts at Deutsche Bank state that Westpac will be the worst hit, with a figure of A$1.58 per share on the back of total cash earnings of A$4.4 billion for 12 months. B9. -- 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.
Compiler corrects item on Minmetals from the AGE digest.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
--Target managing director Launa Inman has committed to being more competitive with respect to the discount department store's struggle to win the 'middle Australian customer.' The move comes following a growing market threat from department store Myer, which has attempted to offer products at the bottom end of rival David Jones and top end of Target. CLSA analyst Daniel Broeren has predicted that new store openings will create 'minimal value' for investors, and the business is not 'priced to go.' Page 14.
--In this coming week, Rio Tinto's shareholders will liaise with the mining giant's chairman, Jan du Plessis, about a new Pilbara iron ore joint venture with rival BHP Billiton. The expected move comes six months after China-based Chinalco's failed US$19.5 billion (A$21.15 billion) bid for Rio. One BHP board member said that it has become harder to defend paying a premium for a 100 percent takeover of Rio, due to its iron ore assets being tied up to its joint venture. Page 14.
--Resources company Rex Minerals will undertake a A$42 million rights offer in order to fund an evaluation of its South Australia-based Hillside copper discovery. The site has been compared with OZ Minerals' Prominent Hill mine, and it is rumoured that EL&C Baillieu Stockbroking has underwritten the three-for-ten rights offer at A$1.70 per share. Other major copper discoveries include Western Australia-based Sandfire Resources' Doolgunna project, and Queensland-based Cudeco's Rocklands project. Page 15.
--Gold miner Troy Resources' independent chairman, John Dow, -- formerly Newmont Mining's managing director -- has observed a dispute between major investor John Jones, former chairman Paul Benson, and board members Alan Naylor and Denis Clarke. Mr Jones has indicated that he would like to replace them with his own candidates. Patersons Securities analyst Josh Welch says that Troy's performance has been positive, following its acquisition of the Argentina-based Casposo gold project.
Page 15.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--Federal Assistant Treasurer Nick Sherry has warned China-based businesses not to view the conditional approval of Yanzhou Coal's A$3.5 billion acquisition of Felix Resources, as an example for other investment in Australian resources companies. The deal has been allowed on the condition that Yanzhou floats at least 30 percent of Felix and other Australian assets on the Australian Securities Exchange by the end of 2012. The Foreign Investment Review Board prefers not to allow foreign state-run companies to secure controlling stakes. Page 21.
--The development of oil giant Chevron's proposed West Australia-based Wheatstone liquefied natural gas project will cost more than US$20 billion (A$21.5 billion). Apache released the data after abandoning Woodside Petroleum for a more favourable deal with Chevron. Chevron says that it has secured gas supply from the Julimar and Brunello fields that are owned by Apache and Kuwait Foreign Petroleum Exploration Company in exchange for a 25 percent interest in Wheatstone. Page 21.
--Deloitte Touche Tohmatsu has disclosed that it made A$5.6 million from its appointment as receiver of collapse stockbroker Opes Prime. The fees were paid by secured lender Australian and New Zealand Banking Group (ANZ). The collapse of Opes saw A$1.5 billion worth of investor shares seized by ANZ and Merrill Lynch, which sold them to repay secured loans. ANZ and Merrill invested A$253 million into a fund to be distributed to creditors, but with the condition that no further litigation was pursued. Page 21.
--The Federal Government is believed to be moving away from its tough legislative threat against Telstra, if a deal can be brokered on the A$43 billion national broadband network. Telstra and the Opposition are calling on the Government to halt the bill until the New Year. The Senate will commence consideration on the Government's telecommunication reforms, but there are suggestions that Telstra has been given six weeks to negotiate and agreement or face tough reforms under the current bill. Page 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--Opposition Leader Malcolm Turnbull has criticised the Federal Government's national broadband network for failing to undertake a cost-benefit analysis of the plan. The scrutiny comes following warnings from telecommunications companies that delaying legislation to force a split of Telstra would leave them unable to guarantee regional services and consumer protection. 'History is littered with cases of the build it and they will come mindset, such as Sydney's cross-city tunnel and the rush to lay deep-sea cables,' Mr Turnbull says. Page 3.
--Investment services provider Trio Capital has commenced processing investor redemption requests, following an investigation into its funds from the Australian Securities and Investments Commission. The funds in question include Astarra Strategic Fund led by Shawn Richard and Eugene Liu, which invested in US hedge funds via British Virgin Islands-based EMA International. A spokesman says that investors are allowed to receive redemptions but could not confirm whether redemptions would last indefinitely. Page 3.
--A class action against Australia-based health-care company CSL, and chief US rival Baxter, has expanded, with an additional 11 US-based hospitals joining as plaintiffs. Hospitals Northwest Iowa, St Luke's Methodist, Detroit Medical Centre, and Trinity Regional Medical, are seeking at least A$100 million in damages, and a trial by jury for engaging cartel behaviour. A CSL spokeswoman says the company will defend the litigation, and is not surprised by the additional plaintiffs that have joined the action because it is a common phenomena in the US legal system. Page 5.
THE AGE (www.theage.com.au)
--Construction and property company Grollo has changed quite rapidly, since the days when founder Bruno Grollo ran the headquarters in Preston, Melbourne. Today the company is managed by brothers Daniel and Adam, who are trying to expand the company throughout Asia, the Middle East and United States. The company now has an office in New York, where Daniel will be based one week per month. There are plans to list a funds management business, and to takeover Multiplex Prime Property Fund. B2.
--There is no deadline for a partial float of Minmetals' Melbourne-based subsidiary, Minerals and Metals Group (MMG), the latter's chief executive Andrew Michelmore said yesterday. China's Minmetals was very committed to improving transparency, Mr Michelmore said, citing a Beijing directive to state-owned entities to make equity available to investors in host countries. MMG was launched in June after it paid A$1.73 billion for the key mining assets of OZ Minerals. Minmetals intends to float off a quarter-stake in the local unit. Page B5.
--Three of the four banks will post a fall in earnings between 9 and 20 percent per share. Westpac Banking Corporation , Australia and New Zealand Baking Group and National Australia Bank will report an average drop of 15 percent in earnings per share this coming month, as rising debts and dilution from fund raising bite into forecasts. Analysts at Deutsche Bank state that Westpac will be the worst hit, with a figure of A$1.58 per share on the back of total cash earnings of A$4.4 billion for 12 months. B9. -- 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.