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)
The A$1.3 billion float of construction group Valemus was last night close to being abandoned, after institutional investors indicated they were unwilling to participate in the proposed initial public offer at the forecast price. Analysts say that Valemus' parent company, Germany's Bilfinger Berger AG , may choose to pull the float before today's planned institutional bookbuild rather than accept a lower price. Page 46.
Rural services group Elders yesterday acknowledged that the Australian Securities and Investments Commission (ASIC) had started an investigation into the company's adherence to market disclosure rules. The investigation by ASIC comes after Elders issued an annual profit forecast of A$48 million in May, followed only a month later by a forecast that the company would record a loss of A$14 million for the year. Page 47.
Jeremy Phillips, chief executive of marketing services company Photon Group, will meet with the chief executives of Photon's 50 businesses this week to outline the group's restructuring and capital management plans. Mr Phillips, a former executive of media group News Corporation, is also expected to announce details of a A$200 million capital raising in the coming week. Page 47.
Legal experts say Billabong International's recent win in the Queensland Supreme Court is unlikely to have a significant influence on legal action against the surf wear group in Indonesia. The court found that Billabong had rightfully terminated a licensing agreement with its previous Indonesian distributor. However, experts say that Indonesia's legal system, based on the Dutch legal system rather than the British system as in Australia, may take little notice of the Queensland court's ruling. Page 47.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Andrew Forrest, chief executive of mining company Fortescue Metals Group, yesterday announced that one of the group's earliest supporters, United States hedge fund Harbinger Capital, had sold its A$400 million stake in the miner. Although Harbinger had started selling its holding in Fortescue before the announcement of the controversial resource super profits tax, Mr Forrest said uncertainty created by the tax had led to the sale.
Page 23.
The board of conglomerate CSR yesterday unanimously supported a A$1.75 billion offer for its Sucrogen sugar and renewable energy business from Singapore's second-largest listed company, Wilmar International. Wilmar's cash offer, which is subject to approval from the Foreign Investment Review Board, won out over a rival bid from China's Bright Food Group.
Page 23.
Ram Kangatharan, chief operating officer at the Bank of Queensland, yesterday said that bank lending rates are likely to rise even without further official rate rises by the Reserve Bank of Australia. Mr Kangatharan said deteriorating investor sentiment was again placing pressure on wholesale funding conditions for lenders. Mr Kangatharan said he believed that Australia's major banks were holding back on interest rate rises due to the upcoming federal election. Page 25.
Water trading and agribusiness group Tandou yesterday said the company will plant cotton on its Broken Hill property for the first time in five years following summer rains in Queensland. Chief executive Guy Kingwill said the rains had boosted water supplies and reduced water prices. Tandou had leased its water entitlements in preference to crop plantings in recent years, and Mr Kingwill said the company would continue to invest in water entitlements. Page 25.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Mining company Centennial Coal has received a A$2.5 billion takeover bid from Thailand's Banpu. The Thai group is already Centennial's largest shareholder with a 20 percent stake, and the board of the New South Wales miner yesterday said it would support the bid. Centennial's managing director, Bob Cameron, said the price reflected the Federal Government's decision to change its controversial resource tax proposal last week. Page 1.
National Australia Bank and construction company Leighton Holdings yesterday told the New South Wales Supreme Court that they had not received a proper return on their investment in the successful 1999 movie, The Matrix. The companies claim that the movie's United States distributor, Warner Brothers, had underpaid them by as much as US$80 million by selling television rights to associated entities too cheaply, and by overstating expenses. Page 1.
Figures from the Australian Prudential Regulation Authority have shown that Australian banks increased their cash holdings by A$12.7 billion between April and the end of May. Total bank holdings of cash and liquid assets reached A$81 billion in May, which analysts yesterday said was a reflection of fears that Europe's debt problems may create further funding problems. Page 3.
Toyota Australia yesterday reported an annual loss of A$107.9 million after negotiations with the Australian Taxation Office led to a 'tax adjustment' of A$246.7 million.
Toyota would not discuss the details of the tax bill. However the company has previously been investigated by the tax office over the issue of transfer pricing, which can move taxable profits overseas. Page 3.
THE AGE (www.theage.com.au)
Mining company Heemskirk Consolidated has gained the support of North Queensland Metals' (NQM) board for its all-scrip takeover bid. The offer of 1.2 Heemskirk shares for each NQM share values the Queensland gold mining company at around A$84 million. NQM last month rejected a A$57.89 million takeover offer from Conquest Mining as inadequate. Page B2.
Conglomerate CSR yesterday said it would examine its asbestos compensation provisions as it considers how to use the A$1.6 billion in proceeds from the sale of its Sucrogen sugar and renewable energy business. The company said, 'CSR continues to accept its responsibilities with respect to its asbestos liabilities and will maintain a responsible capital structure to support its future obligations.' Page B3.
Macquarie Telecom yesterday announced that it expects full-year pre-tax earnings of between A$28 million and A$29 million, up from the telecommunication group's previous forecast of A$26 million to A$28 million. The company said it would spend A$15 million on upgrading its hosting facilities for web-based services, and was also looking for acquisition targets in the hosting industry. Page B4.
The Australian Securities and Investments Commission (ASIC) yesterday said it would review 350 financial reports from the current reporting season, including both full-year and half-year results. The commission said it had already identified those entities to be scrutinised, including 250 listed companies. ASIC said the reviews helped to highlight areas that companies and auditors should focus on. Page B4.
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)
The A$1.3 billion float of construction group Valemus was last night close to being abandoned, after institutional investors indicated they were unwilling to participate in the proposed initial public offer at the forecast price. Analysts say that Valemus' parent company, Germany's Bilfinger Berger AG , may choose to pull the float before today's planned institutional bookbuild rather than accept a lower price. Page 46.
Rural services group Elders yesterday acknowledged that the Australian Securities and Investments Commission (ASIC) had started an investigation into the company's adherence to market disclosure rules. The investigation by ASIC comes after Elders issued an annual profit forecast of A$48 million in May, followed only a month later by a forecast that the company would record a loss of A$14 million for the year. Page 47.
Jeremy Phillips, chief executive of marketing services company Photon Group, will meet with the chief executives of Photon's 50 businesses this week to outline the group's restructuring and capital management plans. Mr Phillips, a former executive of media group News Corporation, is also expected to announce details of a A$200 million capital raising in the coming week. Page 47.
Legal experts say Billabong International's recent win in the Queensland Supreme Court is unlikely to have a significant influence on legal action against the surf wear group in Indonesia. The court found that Billabong had rightfully terminated a licensing agreement with its previous Indonesian distributor. However, experts say that Indonesia's legal system, based on the Dutch legal system rather than the British system as in Australia, may take little notice of the Queensland court's ruling. Page 47.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Andrew Forrest, chief executive of mining company Fortescue Metals Group, yesterday announced that one of the group's earliest supporters, United States hedge fund Harbinger Capital, had sold its A$400 million stake in the miner. Although Harbinger had started selling its holding in Fortescue before the announcement of the controversial resource super profits tax, Mr Forrest said uncertainty created by the tax had led to the sale.
Page 23.
The board of conglomerate CSR yesterday unanimously supported a A$1.75 billion offer for its Sucrogen sugar and renewable energy business from Singapore's second-largest listed company, Wilmar International. Wilmar's cash offer, which is subject to approval from the Foreign Investment Review Board, won out over a rival bid from China's Bright Food Group.
Page 23.
Ram Kangatharan, chief operating officer at the Bank of Queensland, yesterday said that bank lending rates are likely to rise even without further official rate rises by the Reserve Bank of Australia. Mr Kangatharan said deteriorating investor sentiment was again placing pressure on wholesale funding conditions for lenders. Mr Kangatharan said he believed that Australia's major banks were holding back on interest rate rises due to the upcoming federal election. Page 25.
Water trading and agribusiness group Tandou yesterday said the company will plant cotton on its Broken Hill property for the first time in five years following summer rains in Queensland. Chief executive Guy Kingwill said the rains had boosted water supplies and reduced water prices. Tandou had leased its water entitlements in preference to crop plantings in recent years, and Mr Kingwill said the company would continue to invest in water entitlements. Page 25.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Mining company Centennial Coal has received a A$2.5 billion takeover bid from Thailand's Banpu. The Thai group is already Centennial's largest shareholder with a 20 percent stake, and the board of the New South Wales miner yesterday said it would support the bid. Centennial's managing director, Bob Cameron, said the price reflected the Federal Government's decision to change its controversial resource tax proposal last week. Page 1.
National Australia Bank and construction company Leighton Holdings yesterday told the New South Wales Supreme Court that they had not received a proper return on their investment in the successful 1999 movie, The Matrix. The companies claim that the movie's United States distributor, Warner Brothers, had underpaid them by as much as US$80 million by selling television rights to associated entities too cheaply, and by overstating expenses. Page 1.
Figures from the Australian Prudential Regulation Authority have shown that Australian banks increased their cash holdings by A$12.7 billion between April and the end of May. Total bank holdings of cash and liquid assets reached A$81 billion in May, which analysts yesterday said was a reflection of fears that Europe's debt problems may create further funding problems. Page 3.
Toyota Australia yesterday reported an annual loss of A$107.9 million after negotiations with the Australian Taxation Office led to a 'tax adjustment' of A$246.7 million.
Toyota would not discuss the details of the tax bill. However the company has previously been investigated by the tax office over the issue of transfer pricing, which can move taxable profits overseas. Page 3.
THE AGE (www.theage.com.au)
Mining company Heemskirk Consolidated has gained the support of North Queensland Metals' (NQM) board for its all-scrip takeover bid. The offer of 1.2 Heemskirk shares for each NQM share values the Queensland gold mining company at around A$84 million. NQM last month rejected a A$57.89 million takeover offer from Conquest Mining as inadequate. Page B2.
Conglomerate CSR yesterday said it would examine its asbestos compensation provisions as it considers how to use the A$1.6 billion in proceeds from the sale of its Sucrogen sugar and renewable energy business. The company said, 'CSR continues to accept its responsibilities with respect to its asbestos liabilities and will maintain a responsible capital structure to support its future obligations.' Page B3.
Macquarie Telecom yesterday announced that it expects full-year pre-tax earnings of between A$28 million and A$29 million, up from the telecommunication group's previous forecast of A$26 million to A$28 million. The company said it would spend A$15 million on upgrading its hosting facilities for web-based services, and was also looking for acquisition targets in the hosting industry. Page B4.
The Australian Securities and Investments Commission (ASIC) yesterday said it would review 350 financial reports from the current reporting season, including both full-year and half-year results. The commission said it had already identified those entities to be scrutinised, including 250 listed companies. ASIC said the reviews helped to highlight areas that companies and auditors should focus on. Page B4.
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.