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)
Hospital and pathology services group Healthscope is today expected to announce its support for a takeover offer from private equity groups TPG and Carlyle. The winning consortium beat a rival bid from Kohlberg, Kravis & Roberts with a deal worth A$2.7 billion. The deal is expected to be completed by the end of the year, but requires approval both from investors holding 75 percent of Healthscope shares, and the Foreign Investment Review Board. Page 22.
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Telecommunications group Telstra is in talks with thoroughbred racing broadcaster TVN about acquiring up to 25 percent of the television channel. Telstra and TVN are already joint venture partners, providing racing coverage to Telstra mobile and internet customers, and analysts say a formal alliance could provide further content for Telstra's new T-Box internet-enabled digital video recorder. Page 22.
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Don Voelte, chief executive of oil and gas group Woodside Petroleum, on the weekend downplayed the company's interest in acquiring assets from troubled oil company British Petroleum (BP). Speaking to the Australian American Leadership Dialogue in Washington, Mr Voelte said that although there were BP assets that would be attractive to Woodside, he believed BP would only sell assets that were no longer of strategic importance. Page 43.
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Logistics group Toll Holdings says it plans to use its purchase of two British freight forwarding companies to grow its presence in Asia, and reduce the company's reliance on Australia. Managing director Paul Little yesterday said 'we think our growth will be far more significant offshore than in Australia.' Toll paid A$150 million for the two companies earlier this month, and is aiming to increase revenues from its freight forwarding business to A$3 billion next year. Page 43.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Smaller mining companies may continue their campaign against the Federal Government's proposed new resource tax in the lead-up to the federal election on August 21. Opposition Leader Tony Abbott yesterday rejected the tax, saying that the current system of state royalties was effective. Prime Minister Julia Gillard negotiated the new tax with major mining companies BHP Billiton, Rio Tinto, and Xstrata, and smaller companies say their interests and concerns were not considered. Page 23.
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The Australian Institute of Company Directors has criticised a proposal to require all 2192 companies listed on the Australian Securities Exchange (ASX) to establish audit committees.
Currently, only the 500 companies in the S&P-ASX All Ordinaries Index are obliged to set up audit committees. The proposal was included in a discussion paper on audit quality released by Treasury in March. Page 25.
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Explosives and chemicals manufacturer Orica last week told analysts that a US$550 million ammonium nitrate plant in Indonesia was on schedule for completion in the second half of next year, while plans for an ammonium and ammonium nitrate plant on Kooragang Island off New South Wales are also progressing.
Orica, which recently spun off its Dulux paints business, said it was also looking at capacity expansion opportunities in South America. Page 25.
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Jeremy Cooper, the head of the Federal Government's recent review into Australia's superannuation system, yesterday said improvements to administration within the system could increase retirement savings by up to A$1 billion a year. Mr Cooper said the SuperStream proposal contained in the review would help cut costs through greater use of electronic records, while further consolidation within the sector would generate economy of scale efficiencies. Page 25.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Andrew Forrest, chief executive of mining company Fortescue Metals Group, has agreed to invest A$3 million in biotechnology group Coridon through his unlisted public company Allied Health. Brisbane-based Coridon is chaired by Professor Ian Frazer - the co-creator of the cervical cancer vaccine - and aims to develop DNA-based vaccines for the prevention and treatment of viral infections. Page 1.
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Finance provider GE Capital's head of Australian operations, Skander Malcolm, yesterday said smaller lenders remain at a disadvantage when obtaining funds compared to major banks. Mr Malcolm said major banks are able to use their much larger deposit bases to fund their lending, while second-tier lenders such as GE Money are far more reliant on accessing capital markets. 'It's not exactly a liquid market, so there are certainly still challenges out there,' Mr Malcolm said. Page 2.
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Australian Property Monitors (APM) yesterday said that auction clearance rates in Sydney on the weekend rose to 61 percent, after last weekend's poor result of 49 percent. The rate is still below that of the same period last year, although last year's clearance rates were buoyed by the Federal Government's economic stimulus package and lower interest rates.
APM analyst Yvonne Chan said there are signs that auction rates are rising due to increased investor confidence. Page 3.
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Telecommunications companies such as Optus and Vodafone stand to benefit from lower fees when the Federal Government's USO Company takes over the universal services obligation (USO) now provided by former monopoly Telstra. Companies currently pay a portion of their annual revenue to Telstra as a universal services levy. Rivals to Telstra have previously complained that the cost of providing the USO is minimal, while Telstra gains a 'huge brand benefit.' Page 6.
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THE AGE (www.theage.com.au)
The Department of Health and Ageing has said it is 'closely monitoring' nursing home group Japara Holdings, following allegations that the aged-care provider had broken regulations regarding the amount of cash providers must have available. The allegations are contained in an affidavit by former chief executive Arnan Rouse.
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Drug manufacturer Sigma Pharmaceuticals yesterday said it had received three bids for each of the two assets it is attempting to sell. The company has put consumer health business Herron and drug maker Orphan Australia up for sale as part of efforts address debt levels and to stave off a takeover bid from South Africa's Aspen Pharmacare. Sigma said the bids come from both local and overseas groups, and follow the completion of a due diligence process on the businesses. Page B3.
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Tests of bore water from sites around Cougar Energy's underground coal gasification project in Queensland's Kingaroy have found them to be within drinking water guideline standards.
The Queensland Government last week ordered the plant to remain closed until it could be assured that groundwater resources were protected. The results announced on Saturday were from five of eight sample sites, with Cougar yesterday saying that it would inform the market of the remaining results as soon as they were available. Page B5.
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The Real Estate Institute of Victoria on the weekend released June-quarter median property prices for the state, showing that the median house price in Melbourne increased by 8.5 percent to A$559,000. The increase was driven by rises in affordable suburbs, with high-end suburbs such as Brighton, Prahran and Toorak recording falls in median prices. Analysts said prices were helped by a return of investors to the property market during the quarter. Page 11.
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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)
Hospital and pathology services group Healthscope is today expected to announce its support for a takeover offer from private equity groups TPG and Carlyle. The winning consortium beat a rival bid from Kohlberg, Kravis & Roberts with a deal worth A$2.7 billion. The deal is expected to be completed by the end of the year, but requires approval both from investors holding 75 percent of Healthscope shares, and the Foreign Investment Review Board. Page 22.
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Telecommunications group Telstra is in talks with thoroughbred racing broadcaster TVN about acquiring up to 25 percent of the television channel. Telstra and TVN are already joint venture partners, providing racing coverage to Telstra mobile and internet customers, and analysts say a formal alliance could provide further content for Telstra's new T-Box internet-enabled digital video recorder. Page 22.
- - - -
Don Voelte, chief executive of oil and gas group Woodside Petroleum, on the weekend downplayed the company's interest in acquiring assets from troubled oil company British Petroleum (BP). Speaking to the Australian American Leadership Dialogue in Washington, Mr Voelte said that although there were BP assets that would be attractive to Woodside, he believed BP would only sell assets that were no longer of strategic importance. Page 43.
- - - -
Logistics group Toll Holdings says it plans to use its purchase of two British freight forwarding companies to grow its presence in Asia, and reduce the company's reliance on Australia. Managing director Paul Little yesterday said 'we think our growth will be far more significant offshore than in Australia.' Toll paid A$150 million for the two companies earlier this month, and is aiming to increase revenues from its freight forwarding business to A$3 billion next year. Page 43.
- - - -
THE AUSTRALIAN (www.theaustralian.news.com.au)
Smaller mining companies may continue their campaign against the Federal Government's proposed new resource tax in the lead-up to the federal election on August 21. Opposition Leader Tony Abbott yesterday rejected the tax, saying that the current system of state royalties was effective. Prime Minister Julia Gillard negotiated the new tax with major mining companies BHP Billiton, Rio Tinto, and Xstrata, and smaller companies say their interests and concerns were not considered. Page 23.
- - - -
The Australian Institute of Company Directors has criticised a proposal to require all 2192 companies listed on the Australian Securities Exchange (ASX) to establish audit committees.
Currently, only the 500 companies in the S&P-ASX All Ordinaries Index are obliged to set up audit committees. The proposal was included in a discussion paper on audit quality released by Treasury in March. Page 25.
- - - -
Explosives and chemicals manufacturer Orica last week told analysts that a US$550 million ammonium nitrate plant in Indonesia was on schedule for completion in the second half of next year, while plans for an ammonium and ammonium nitrate plant on Kooragang Island off New South Wales are also progressing.
Orica, which recently spun off its Dulux paints business, said it was also looking at capacity expansion opportunities in South America. Page 25.
- - - -
Jeremy Cooper, the head of the Federal Government's recent review into Australia's superannuation system, yesterday said improvements to administration within the system could increase retirement savings by up to A$1 billion a year. Mr Cooper said the SuperStream proposal contained in the review would help cut costs through greater use of electronic records, while further consolidation within the sector would generate economy of scale efficiencies. Page 25.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Andrew Forrest, chief executive of mining company Fortescue Metals Group, has agreed to invest A$3 million in biotechnology group Coridon through his unlisted public company Allied Health. Brisbane-based Coridon is chaired by Professor Ian Frazer - the co-creator of the cervical cancer vaccine - and aims to develop DNA-based vaccines for the prevention and treatment of viral infections. Page 1.
- - - -
Finance provider GE Capital's head of Australian operations, Skander Malcolm, yesterday said smaller lenders remain at a disadvantage when obtaining funds compared to major banks. Mr Malcolm said major banks are able to use their much larger deposit bases to fund their lending, while second-tier lenders such as GE Money are far more reliant on accessing capital markets. 'It's not exactly a liquid market, so there are certainly still challenges out there,' Mr Malcolm said. Page 2.
- - - -
Australian Property Monitors (APM) yesterday said that auction clearance rates in Sydney on the weekend rose to 61 percent, after last weekend's poor result of 49 percent. The rate is still below that of the same period last year, although last year's clearance rates were buoyed by the Federal Government's economic stimulus package and lower interest rates.
APM analyst Yvonne Chan said there are signs that auction rates are rising due to increased investor confidence. Page 3.
- - - -
Telecommunications companies such as Optus and Vodafone stand to benefit from lower fees when the Federal Government's USO Company takes over the universal services obligation (USO) now provided by former monopoly Telstra. Companies currently pay a portion of their annual revenue to Telstra as a universal services levy. Rivals to Telstra have previously complained that the cost of providing the USO is minimal, while Telstra gains a 'huge brand benefit.' Page 6.
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THE AGE (www.theage.com.au)
The Department of Health and Ageing has said it is 'closely monitoring' nursing home group Japara Holdings, following allegations that the aged-care provider had broken regulations regarding the amount of cash providers must have available. The allegations are contained in an affidavit by former chief executive Arnan Rouse.
- - - -
Drug manufacturer Sigma Pharmaceuticals yesterday said it had received three bids for each of the two assets it is attempting to sell. The company has put consumer health business Herron and drug maker Orphan Australia up for sale as part of efforts address debt levels and to stave off a takeover bid from South Africa's Aspen Pharmacare. Sigma said the bids come from both local and overseas groups, and follow the completion of a due diligence process on the businesses. Page B3.
- - - -
Tests of bore water from sites around Cougar Energy's underground coal gasification project in Queensland's Kingaroy have found them to be within drinking water guideline standards.
The Queensland Government last week ordered the plant to remain closed until it could be assured that groundwater resources were protected. The results announced on Saturday were from five of eight sample sites, with Cougar yesterday saying that it would inform the market of the remaining results as soon as they were available. Page B5.
- - - -
The Real Estate Institute of Victoria on the weekend released June-quarter median property prices for the state, showing that the median house price in Melbourne increased by 8.5 percent to A$559,000. The increase was driven by rises in affordable suburbs, with high-end suburbs such as Brighton, Prahran and Toorak recording falls in median prices. Analysts said prices were helped by a return of investors to the property market during the quarter. Page 11.
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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.