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)
Mining sector analysts say delays to the European Commissions inquiry into a proposed Pilbara iron ore joint venture by BHP Billiton and Rio Tinto, could prevent the companies from seeking shareholder approval for the plan this year. BHP and Rio are seeking to persuade European regulators that plans to merge iron ore operations in the Western Australian region would not affect iron ore prices. Page 16.
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Airline Virgin Blue has started a review of its A$50 million advertising account, briefing six advertising agencies to pitch creative content. The review follows the appointment of John Borghetti as chief executive in March, who has indicated that the airline will become more focused on the business travel market, with plans to double its share of the more lucrative business sector within two years. Page 16.
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The syndicate of lenders to power company Alinta Energy is believed to be negotiating deals on the groups A$2.7 billion of debt, indicating that the banking syndicate has given up on recovering all of their money. Lenders including Suncorp and the Commonwealth Bank of Australia are thought to have sold Alinta debt in deals worth between A65 cents in the dollar and A80 cents in the dollar. Page 17.
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Senior executives from Chinese group Bright Foods have returned to China following talks with conglomerate CSR on the purchase of its sugar business, Sucrogen. Bright made a conditional offer of A$1.75 billion in April, but is thought to have reduced its bid to around A$1.65 billion. A formal bid is expected by July 8, when CSR will hold its annual general meeting. Page 18.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The heads of mining companies Fortescue Metals Group and Hancock Prospecting Andrew Forrest and Gina Rinehart respectively are believed to be negotiating shared use of Fortescues iron ore rail network in Western Australia. Mr Forrest had previously rejected the possibility of sharing rail capacity; however, uncertainty surrounding Federal Government plans for a resource rent tax have put on hold Fortescues planned US$9 billion Solomon iron ore project in the state, which may free rail capacity. Page 21.
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Proposals for the development of a national ports strategy are being resisted by the West Australian and New South Wales governments due to fears the proposals could lead to less stringent environmental assessment processes. The concerns are raised in submissions by the state governments to Federal Government body Infrastructure Australia, which released its draft national ports strategy last month. Page 22.
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Marketing and communications services company Photon Group will today release a trading update, with market expectations of around A$180 million in writedowns and impairments. Founder Tim Hughes has indicated that he will stand down as executive chairman, with new chief executive Jeremy Phillips to be joined by Brian Bickmore as the companys first non-executive chairman.
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Telstra chief executive David Thodey yesterday said the company would look for potential acquisition targets now that a deal has been reached over the telecommunication groups involvement in the National Broadband Network. Mr Thodey said Telstra would seek acquisitions that could help the company create a digital home for customers. Page 23.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Australian banks are cutting long-term fixed mortgage rates as they seek to attract borrowers in the recovering loan market.
Figures from the Australian Bureau of Statistics show that the fixed rate market had fallen to a near-twenty year low of 2.1 percent of all owner-occupied loans in March. However, the sector grew in April, and is expected to become a growth area, driven by the narrowing gap between variable and fixed rates.
Page 1.
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An auction of 28 commercial properties in Sydney and regional New South Wales last week saw only four properties sold.
Property analyst John Wakefield said the poor clearance rate demonstrated the current poor sentiment at the mid and lower end of the business market. Auctioneer David Scholes said the 14 percent clearance rate was close to results during the worst of the global financial crisis two years ago. Page 5.
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Research company Australian Stock Report yesterday said the Australian sharemarket is expected to rise upon opening today, driven by increased metal and energy prices in overseas markets on Friday. Australian Stock Report analyst Geoff Saffer said we should see our major energy stocks performing strongly, while gold stocks are likely to rise following a degree of profit-taking last week. Page 7.
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New Prime Minster Julia Gillard is restricted in her ability to compromise on the Governments contentious resource super profits tax proposals, according to commentators. Although the controversy surrounding the tax is believed to have contributed to the ousting of former prime minister Kevin Rudd, analysts say abandoning the tax would leave the Government open to politically damaging accusations of a lack of conviction. Page 8.
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THE AGE (www.theage.com.au)
Merged telecommunications group Vodafone Hutchinson Australia yesterday announced that customers on Vodafone and Hutchison 3 networks will gain free calls between the brands from next month.
Vodafone and Hutchison Whampoa merged in June 2009. The company said it would also start refurbishing retail outlets in coming works, although system upgrades are needed before 3 customers can use Vodafone stores. Page B3.
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Newspaper and online publisher Fairfax Media yesterday released the results of a survey on online viewing, finding that many people were using their personal computer or laptop as the second screen at home. Fairfax said the survey refutes claims by television manufacturers and broadcasters that internet television will move strongly to viewing through television screens. Page B3.
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The A$1.3 billion float of Valemus, the Australian construction division of German group Bilfinger Berger, will close its offer to retail investors this Friday. However, the value of Valemus shares is set to be determined when the institutional book-build starts on July 8, with institutional investors expected to take up more than 90 percent of the 555 million shares being offered. Page B5. - - - -
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)
Mining sector analysts say delays to the European Commissions inquiry into a proposed Pilbara iron ore joint venture by BHP Billiton and Rio Tinto, could prevent the companies from seeking shareholder approval for the plan this year. BHP and Rio are seeking to persuade European regulators that plans to merge iron ore operations in the Western Australian region would not affect iron ore prices. Page 16.
- - - -
Airline Virgin Blue has started a review of its A$50 million advertising account, briefing six advertising agencies to pitch creative content. The review follows the appointment of John Borghetti as chief executive in March, who has indicated that the airline will become more focused on the business travel market, with plans to double its share of the more lucrative business sector within two years. Page 16.
- - - -
The syndicate of lenders to power company Alinta Energy is believed to be negotiating deals on the groups A$2.7 billion of debt, indicating that the banking syndicate has given up on recovering all of their money. Lenders including Suncorp and the Commonwealth Bank of Australia are thought to have sold Alinta debt in deals worth between A65 cents in the dollar and A80 cents in the dollar. Page 17.
- - - -
Senior executives from Chinese group Bright Foods have returned to China following talks with conglomerate CSR on the purchase of its sugar business, Sucrogen. Bright made a conditional offer of A$1.75 billion in April, but is thought to have reduced its bid to around A$1.65 billion. A formal bid is expected by July 8, when CSR will hold its annual general meeting. Page 18.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The heads of mining companies Fortescue Metals Group and Hancock Prospecting Andrew Forrest and Gina Rinehart respectively are believed to be negotiating shared use of Fortescues iron ore rail network in Western Australia. Mr Forrest had previously rejected the possibility of sharing rail capacity; however, uncertainty surrounding Federal Government plans for a resource rent tax have put on hold Fortescues planned US$9 billion Solomon iron ore project in the state, which may free rail capacity. Page 21.
- - - -
Proposals for the development of a national ports strategy are being resisted by the West Australian and New South Wales governments due to fears the proposals could lead to less stringent environmental assessment processes. The concerns are raised in submissions by the state governments to Federal Government body Infrastructure Australia, which released its draft national ports strategy last month. Page 22.
- - - -
Marketing and communications services company Photon Group will today release a trading update, with market expectations of around A$180 million in writedowns and impairments. Founder Tim Hughes has indicated that he will stand down as executive chairman, with new chief executive Jeremy Phillips to be joined by Brian Bickmore as the companys first non-executive chairman.
- - - -
Telstra chief executive David Thodey yesterday said the company would look for potential acquisition targets now that a deal has been reached over the telecommunication groups involvement in the National Broadband Network. Mr Thodey said Telstra would seek acquisitions that could help the company create a digital home for customers. Page 23.
- - - -
THE SYDNEY MORNING HERALD (www.smh.com.au)
Australian banks are cutting long-term fixed mortgage rates as they seek to attract borrowers in the recovering loan market.
Figures from the Australian Bureau of Statistics show that the fixed rate market had fallen to a near-twenty year low of 2.1 percent of all owner-occupied loans in March. However, the sector grew in April, and is expected to become a growth area, driven by the narrowing gap between variable and fixed rates.
Page 1.
- - - -
An auction of 28 commercial properties in Sydney and regional New South Wales last week saw only four properties sold.
Property analyst John Wakefield said the poor clearance rate demonstrated the current poor sentiment at the mid and lower end of the business market. Auctioneer David Scholes said the 14 percent clearance rate was close to results during the worst of the global financial crisis two years ago. Page 5.
- - - -
Research company Australian Stock Report yesterday said the Australian sharemarket is expected to rise upon opening today, driven by increased metal and energy prices in overseas markets on Friday. Australian Stock Report analyst Geoff Saffer said we should see our major energy stocks performing strongly, while gold stocks are likely to rise following a degree of profit-taking last week. Page 7.
- - - -
New Prime Minster Julia Gillard is restricted in her ability to compromise on the Governments contentious resource super profits tax proposals, according to commentators. Although the controversy surrounding the tax is believed to have contributed to the ousting of former prime minister Kevin Rudd, analysts say abandoning the tax would leave the Government open to politically damaging accusations of a lack of conviction. Page 8.
- - - -
THE AGE (www.theage.com.au)
Merged telecommunications group Vodafone Hutchinson Australia yesterday announced that customers on Vodafone and Hutchison 3 networks will gain free calls between the brands from next month.
Vodafone and Hutchison Whampoa merged in June 2009. The company said it would also start refurbishing retail outlets in coming works, although system upgrades are needed before 3 customers can use Vodafone stores. Page B3.
- - - -
Newspaper and online publisher Fairfax Media yesterday released the results of a survey on online viewing, finding that many people were using their personal computer or laptop as the second screen at home. Fairfax said the survey refutes claims by television manufacturers and broadcasters that internet television will move strongly to viewing through television screens. Page B3.
- - - -
The A$1.3 billion float of Valemus, the Australian construction division of German group Bilfinger Berger, will close its offer to retail investors this Friday. However, the value of Valemus shares is set to be determined when the institutional book-build starts on July 8, with institutional investors expected to take up more than 90 percent of the 555 million shares being offered. Page B5. - - - -
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.