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)
Executive search firm Egon Zehnder International has been appointed to recommend independent directors for the company that will be formed by the merger of Kerry Stokes Seven Network and his private company WesTrac. Egon Zehnder will consult with major shareholders of Seven - who have yet to approve the planned A$2 billion purchase of mining equipment business WesTrac - on possible board appointees. Page 13.
The chief executive of department store Myer, Bernie Brookes, last week told investors that he intends to increase annual turnover at the retailer to at least A$4 billion by 2015.
Mr Brookes said that achieving the increase would rely on the 15 new stores scheduled to open during that time, which are each expected to have turnover of between A$30 million and A$35 million. Page 13.
Internet service provider TPG Telecom expects to generate A$100 million in savings within five years from its A$373 million purchase of Pipe Networks, according to executive chairman David Teoh. Mr Teoh last week said that the savings will come from owning Pipes backhaul infrastructure, including a new submarine fibre cable between Australia and the United States, that will reduce TPGs bandwidth costs. Page 13.
United States (US) retailer Gap will buy clothing ranges as they are released in the US and store them for three to six months before selling them at the appropriate season locally.
YC Eu, marketing manager at Australian franchise partner Busby Holdings, last week said Thats just how it works with us being here and having reverse seasons. Gap plans to open between 10 and 15 stores in Australia within the next four years. Page 14.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Drug company Sigma Pharmaceuticals is preparing to release revised full-year accounts on Wednesday, with speculation that it will include asset write-downs worth over A$250 million for the year to 31 January 2010. Goldman Sachs JBWere yesterday said the result would focus on the size of the goodwill impairment arising from poor operating conditions in the generics market, and the impact this may have on debt covenants and finance costs. Page 23.
Building products and sugar company CSR will challenge a court ruling preventing a shareholder meeting on the conglomerates proposed demerger. Judge Margaret Stone said in her 3 February judgement that CSR would be less likely to be able to meet its future asbestos liabilities, if the merger went ahead. CSR believes it will be able to cover compensation payouts, and will argue the judgement was flawed on the basis that differences of opinion were normal in actuarial estimates.
Page 23.
A tax director at accounting and advisory firm BDO Australia, Russell Garvey, yesterday warned that the Federal Governments proposed federal resources rent tax could threaten investment in the mining industry. Mr Garvey said that implementing such a tax would make Australian resources projects among the most highly taxed in the world. If the government gets the rate wrongit could have very deep problems for the sector, Mr Garvey added.
Page 24.
Tungsten mining company Hazelwood Resources last week saw increased investor interest in its shares, after announcing a major resource estimate upgrade at its West Australian tungsten project. Managing director Terry Butler-Blaxell said the business had quadrupled the projects resource over the past 12 months. We didnt think we would achieve these results this fast, Mr Butler-Blaxell added. Page 24.
THE SYDNEY MORNING HERALD (www.smh.com.au)
The Federal Court yesterday heard that funds manager Rubicon was expecting a small profit or loss when a A$263 million takeover offer from Allco Finance Group was under consideration.
Rubicon founder Gordon Fell had spoken to Allco managing director David Clarke about Rubicons financial circumstances three weeks before Allco shareholders voted on the deal. small profit or loss for the first half of the financial year, Mr Fell said yesterday.
Page 1.
National Australia Bank, Westpac Banking Corporation , and Australia and New Zealand Banking Group all expect to finish up their first-half accounts this week and release results around the end of next month. Bank of Queensland, which last week purchased life insurer St Andrews, will also finalise its accounts at the end of March. Most of the lenders have succeeded in passing on rising costs to business customers. Page 5.
Gold producer Oceana Gold's C$86.3 million (A$93 million) equity raising is nearing completion. The business plans to use the funds to restructure its gold hedging facility and direct cash according to working capital requirements. If gold prices continue at around US$1,100 per ounce, Oceana is likely to accumulate A$2 million per week in free cash flow.
Chief operating officer Mark Cadzow yesterday described his companys recovery as an enormous boost. Page 5.
Numerous parties are rumoured to be examining acquisition opportunities in property funds management business Orchard Funds. The business last month said that it acknowledged the need to bolster its balance sheet, having appointed KPMG to review options that may include a takeover or recapitalisation of Orchard. A deal, which could result in another advisory group emerging as the manager, was yesterday speculated to be nearing agreement. Page 10.
THE AGE (www.theage.com.au)
Federal Government moves to support the local mortgage securitisation market is helping small banks reduce their funding costs, according to Treasurer Wayne Swan. Mr Swan yesterday said that the Governments support is giving private investors the confidence to invest increasing amounts of their own money in this important market. The Government last year committed to invest up to A$16 billion in residential mortgage-backed securities. Page B3.
Canadian mining company Crocodile Gold has outlined its plans to develop the Northern Territorys Pine Creek Mineral field. Crocodile last year purchased the gold assets in the area from collapsed company GBS Gold for A$50 million, and says it will spend US$23 million on exploration. The company aims to produce 120,000 ounces of gold at a cost of $US650 an ounce this year. Page B4.
There is speculation that investment bank Macquarie Group may sell its 23.2 percent stake in Macquarie Airports (MAp) to Australias A$66 billion sovereign wealth fund, the Future Fund. Macquarie no longer has management rights over MAp, and the sale, if completed before the banks March 31 year end at the rumoured price of A$1.5 billion, would boost Macquaries annual pre-tax profit by around A$180 million. Page 6.
West Australian stockbroking firm Patersons recently released a review of Australias junior resources sector. The firms best buys in the sector include Avoca Resources, which recently purchased rival gold mining company Dioro; iron ore pellets producer Grange Resources, which is expected to benefit from higher prices; and Orocobre, with the lithium producer set to benefit from increased demand for lithium batteries, particularly from the emerging hybrid electric car industry. Page B8. --
Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1816; sydney.newsroom@allreleases.net) COPYRIGHT Copyright Thomson Reuters 2010. 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)
Executive search firm Egon Zehnder International has been appointed to recommend independent directors for the company that will be formed by the merger of Kerry Stokes Seven Network and his private company WesTrac. Egon Zehnder will consult with major shareholders of Seven - who have yet to approve the planned A$2 billion purchase of mining equipment business WesTrac - on possible board appointees. Page 13.
The chief executive of department store Myer, Bernie Brookes, last week told investors that he intends to increase annual turnover at the retailer to at least A$4 billion by 2015.
Mr Brookes said that achieving the increase would rely on the 15 new stores scheduled to open during that time, which are each expected to have turnover of between A$30 million and A$35 million. Page 13.
Internet service provider TPG Telecom expects to generate A$100 million in savings within five years from its A$373 million purchase of Pipe Networks, according to executive chairman David Teoh. Mr Teoh last week said that the savings will come from owning Pipes backhaul infrastructure, including a new submarine fibre cable between Australia and the United States, that will reduce TPGs bandwidth costs. Page 13.
United States (US) retailer Gap will buy clothing ranges as they are released in the US and store them for three to six months before selling them at the appropriate season locally.
YC Eu, marketing manager at Australian franchise partner Busby Holdings, last week said Thats just how it works with us being here and having reverse seasons. Gap plans to open between 10 and 15 stores in Australia within the next four years. Page 14.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Drug company Sigma Pharmaceuticals is preparing to release revised full-year accounts on Wednesday, with speculation that it will include asset write-downs worth over A$250 million for the year to 31 January 2010. Goldman Sachs JBWere yesterday said the result would focus on the size of the goodwill impairment arising from poor operating conditions in the generics market, and the impact this may have on debt covenants and finance costs. Page 23.
Building products and sugar company CSR will challenge a court ruling preventing a shareholder meeting on the conglomerates proposed demerger. Judge Margaret Stone said in her 3 February judgement that CSR would be less likely to be able to meet its future asbestos liabilities, if the merger went ahead. CSR believes it will be able to cover compensation payouts, and will argue the judgement was flawed on the basis that differences of opinion were normal in actuarial estimates.
Page 23.
A tax director at accounting and advisory firm BDO Australia, Russell Garvey, yesterday warned that the Federal Governments proposed federal resources rent tax could threaten investment in the mining industry. Mr Garvey said that implementing such a tax would make Australian resources projects among the most highly taxed in the world. If the government gets the rate wrongit could have very deep problems for the sector, Mr Garvey added.
Page 24.
Tungsten mining company Hazelwood Resources last week saw increased investor interest in its shares, after announcing a major resource estimate upgrade at its West Australian tungsten project. Managing director Terry Butler-Blaxell said the business had quadrupled the projects resource over the past 12 months. We didnt think we would achieve these results this fast, Mr Butler-Blaxell added. Page 24.
THE SYDNEY MORNING HERALD (www.smh.com.au)
The Federal Court yesterday heard that funds manager Rubicon was expecting a small profit or loss when a A$263 million takeover offer from Allco Finance Group was under consideration.
Rubicon founder Gordon Fell had spoken to Allco managing director David Clarke about Rubicons financial circumstances three weeks before Allco shareholders voted on the deal. small profit or loss for the first half of the financial year, Mr Fell said yesterday.
Page 1.
National Australia Bank, Westpac Banking Corporation , and Australia and New Zealand Banking Group all expect to finish up their first-half accounts this week and release results around the end of next month. Bank of Queensland, which last week purchased life insurer St Andrews, will also finalise its accounts at the end of March. Most of the lenders have succeeded in passing on rising costs to business customers. Page 5.
Gold producer Oceana Gold's C$86.3 million (A$93 million) equity raising is nearing completion. The business plans to use the funds to restructure its gold hedging facility and direct cash according to working capital requirements. If gold prices continue at around US$1,100 per ounce, Oceana is likely to accumulate A$2 million per week in free cash flow.
Chief operating officer Mark Cadzow yesterday described his companys recovery as an enormous boost. Page 5.
Numerous parties are rumoured to be examining acquisition opportunities in property funds management business Orchard Funds. The business last month said that it acknowledged the need to bolster its balance sheet, having appointed KPMG to review options that may include a takeover or recapitalisation of Orchard. A deal, which could result in another advisory group emerging as the manager, was yesterday speculated to be nearing agreement. Page 10.
THE AGE (www.theage.com.au)
Federal Government moves to support the local mortgage securitisation market is helping small banks reduce their funding costs, according to Treasurer Wayne Swan. Mr Swan yesterday said that the Governments support is giving private investors the confidence to invest increasing amounts of their own money in this important market. The Government last year committed to invest up to A$16 billion in residential mortgage-backed securities. Page B3.
Canadian mining company Crocodile Gold has outlined its plans to develop the Northern Territorys Pine Creek Mineral field. Crocodile last year purchased the gold assets in the area from collapsed company GBS Gold for A$50 million, and says it will spend US$23 million on exploration. The company aims to produce 120,000 ounces of gold at a cost of $US650 an ounce this year. Page B4.
There is speculation that investment bank Macquarie Group may sell its 23.2 percent stake in Macquarie Airports (MAp) to Australias A$66 billion sovereign wealth fund, the Future Fund. Macquarie no longer has management rights over MAp, and the sale, if completed before the banks March 31 year end at the rumoured price of A$1.5 billion, would boost Macquaries annual pre-tax profit by around A$180 million. Page 6.
West Australian stockbroking firm Patersons recently released a review of Australias junior resources sector. The firms best buys in the sector include Avoca Resources, which recently purchased rival gold mining company Dioro; iron ore pellets producer Grange Resources, which is expected to benefit from higher prices; and Orocobre, with the lithium producer set to benefit from increased demand for lithium batteries, particularly from the emerging hybrid electric car industry. Page B8. --
Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1816; sydney.newsroom@allreleases.net) COPYRIGHT Copyright Thomson Reuters 2010. 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.