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)
Australian wheat exporter AWB could become the centre of a bidding war after a shock A$856 million bid from GrainCorp. AWB last week agreed to be consumed by GrainCorp rather than break up its monopoly and sell part of its business to United States-based Gavilon. AWB managing director Gordon Davis said the company received interest from several parties after allowing an exclusivity clause on its negotiations with Gavilon to lapse. GrainCorp's bid for AWB will create Australia's biggest diversified agricultural company. Page 16.
Western Australia faces a 30 percent drop in crop production due to a lack of rain in core growing regions, according to CBH Group. The state accounts for about half of the country's wheat exports, and a below average crop would strain CBH, Australia's biggest grains handler. The company has already shed 10 percent of its workforce in order to remain competitive in the sector.
General manager of CBH Colin Tutt, warned that if dry conditions continue the crop could be as low as 8 million tonnes. Page 16.
The chairman of Teys Bros, the largest Australian-owned beef processor in the country, says he is optimistic about prospects of exporting to China despite a high Australian dollar. Chairman Allan Teys highlighted the A$20 million expansion in 2009 as an example of how the private company is 'keeping ahead of the game.' 'We have a strong balance sheet so we can afford to do it,' Mr Teys said. Page 17.
The owner of Brisbane's Clem Jones tunnel is expected to run out of cash in early 2012 unless discounted toll fares boost traffic flows. It was revealed on Friday that traffic flows in the RiverCity Motorway-owned tunnel were significantly lower than those predicted. RiverCity forecast motorists would make about 60,000 daily trips through the tunnel in the first month after opening in March, but in June, only 22,000 daily trips were made.
RiverCity has now slashed toll fares from $4.28 to $2 to boost traffic flows. Page 17.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Securities & Investments Commission (ASIC) has seen an increase of 40 per cent in the number of suspected company breaches of the Corporations Act. The number of notices sent to ASIC by auditors increased to 341 in the year to June 30, compared with only 238 for the year before. The breaches related to potential insolvent trading, late and incomplete financial reports, and non compliance with accounting standards. Page 21.
Companies are becoming increasingly frugal due to slow economic growth. Diversified manufacturer GUD Holdings is one of the many companies that now rely on cost savings and revenue growth to drive earnings. GUD sends mail via express post instead of courier, and sends two representatives, instead of seven, to showcase new products at the Canton Fair. Retailers Woolworths and Myer have also tightened their belts. Woolworths saved 1300km of paper by ordering a smaller font on dockets, and Myer now uses double sided printing. Page 21.
The Australian Bankers Association (ABA) last week agreed to set up a telephone hotline for chief executives to use when a major financial services industry announcement is made by the Federal Government or Opposition. ABA chief executive Steven Munchenberg said the ABA would not comment on discussions at council meetings. 'Not surprisingly, though, we have put in place a number of procedures to deal with any significant announcements during an election campaign,' Mr Munchenberg said.
Page 23.
Australia's largest investment bank Macquarie Group announced a profit downgrade on Friday, warning that three of its key businesses were struggling. The group said it was unlikely to meet earnings expectations, and planned to use its balance sheet for more corporate lending deals. Macquarie Group's A$29 billion cash management trust was transferred to its balance sheet on the weekend to provide more working capital. Page 23.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Companies are set to reveal how their profits fared in the six months to June as reporting season kicks off this week, but analysts warn that many businesses have experienced tough economic conditions. Mining giant Rio Tinto, media company News Corporation, and financial services company AXA Asia-Pacific are among those to report this week. UBS strategist David Cassidy expects results for the media sector to be well placed. Mr Cassidy forecast earnings-per-share growth of 6 percent across the market for the 2010 fiscal year. Page B3.
Linc Energy, Australia's self proclaimed 'leader in clean coal technology,' will tomorrow sign a A$1 billion deal with India's Adani Enterprises for control of its Queensland coal asset. Adani chairman Guatam Adani, met Linc chief executive Peter Bond at the weekend where they reached an agreement on the sale of Linc's Galilee coal tenement. Linc has been trying to offload the non-core assets for sometime, after twice failing to sell them to separate Chinese parties. Page B3.
Gas supply and transmission company Epic Energy has an A$100 million pipeline expansion in sight, as the market awaits the findings of a strategic review that could put Epic up for sale.
Colin Atkin, chief operating officer of Epic's parent, the Hastings Diversified Utilities Fund, said demand for gas created options to pursue Epic's pipeline business. Mr Atkin said Epic was now considering the A$100 million investment to upgrade its Queensland pipeline, which connects core gas fields with customers in south east Australia. Page B5.
Speculation is rife that a report on the insolvency industry will make two 'bombshell' recommendations on the business and corporate regulator when it is released later this month. A Senate inquiry into the insolvency industry will release the report, which is expected to recommend that the Australian Securities and Investments Commission be stripped of its powers, and establish a new industry-specific regulator. It is also suspected to recommend that the insolvency industry's monopoly be open to competition. Page 8.
THE AGE (www.theage.com.au)
Prime Minister Julia Gillard has watered down core recommendations to overhaul the superannuation industry. Ms Gillard has endorsed MySuper, which industry funds hope will drive retail funds out of the market. But her policy differs from the recommendations in the Cooper review of superannuation by allowing super funds increased flexibility. This means that fund managers would invest younger workers' money in higher risk, higher return assets. Page 1.
The competition regulator has raised concerns about Qantas and South Africa Airways' monopoly on the Australia-Africa route. The two airliners are seeking to extend their code-sharing agreement for a further two years, but the Australian Competition and Consumer Commission said an increase in flights over the last 12 months raised questions about the continued need for code-sharing. Qantas and South Africa Airways were the only carriers to offer the direct route until V Australia entered the market in March. Page 3.
Healthcare operator Sigma Pharmaceuticals has received a new offer for its embattled generics business, valued at an estimated A$600 million. United States-based healthcare company Watson Pharmaceuticals, has run its eye over the business and is yet to make a formal takeover offer to purchase Sigma's generic drug assets. Sigma's drug business has been at the centre of three profit warnings and has been affected by heavy discounting and increased competition. Page 3.
Property information group BCI Australia has estimated that construction levels in Victoria and Tasmania will peak at A$4.56 million this year, and reach a similar level in 2011. A BCI report shows that the residential sectors in the two states were resilient in the wake of the economic downturn, with deferrals and abandoned projects at only between 5 and 10 percent. Page 7. --
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)
Australian wheat exporter AWB could become the centre of a bidding war after a shock A$856 million bid from GrainCorp. AWB last week agreed to be consumed by GrainCorp rather than break up its monopoly and sell part of its business to United States-based Gavilon. AWB managing director Gordon Davis said the company received interest from several parties after allowing an exclusivity clause on its negotiations with Gavilon to lapse. GrainCorp's bid for AWB will create Australia's biggest diversified agricultural company. Page 16.
Western Australia faces a 30 percent drop in crop production due to a lack of rain in core growing regions, according to CBH Group. The state accounts for about half of the country's wheat exports, and a below average crop would strain CBH, Australia's biggest grains handler. The company has already shed 10 percent of its workforce in order to remain competitive in the sector.
General manager of CBH Colin Tutt, warned that if dry conditions continue the crop could be as low as 8 million tonnes. Page 16.
The chairman of Teys Bros, the largest Australian-owned beef processor in the country, says he is optimistic about prospects of exporting to China despite a high Australian dollar. Chairman Allan Teys highlighted the A$20 million expansion in 2009 as an example of how the private company is 'keeping ahead of the game.' 'We have a strong balance sheet so we can afford to do it,' Mr Teys said. Page 17.
The owner of Brisbane's Clem Jones tunnel is expected to run out of cash in early 2012 unless discounted toll fares boost traffic flows. It was revealed on Friday that traffic flows in the RiverCity Motorway-owned tunnel were significantly lower than those predicted. RiverCity forecast motorists would make about 60,000 daily trips through the tunnel in the first month after opening in March, but in June, only 22,000 daily trips were made.
RiverCity has now slashed toll fares from $4.28 to $2 to boost traffic flows. Page 17.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Securities & Investments Commission (ASIC) has seen an increase of 40 per cent in the number of suspected company breaches of the Corporations Act. The number of notices sent to ASIC by auditors increased to 341 in the year to June 30, compared with only 238 for the year before. The breaches related to potential insolvent trading, late and incomplete financial reports, and non compliance with accounting standards. Page 21.
Companies are becoming increasingly frugal due to slow economic growth. Diversified manufacturer GUD Holdings is one of the many companies that now rely on cost savings and revenue growth to drive earnings. GUD sends mail via express post instead of courier, and sends two representatives, instead of seven, to showcase new products at the Canton Fair. Retailers Woolworths and Myer have also tightened their belts. Woolworths saved 1300km of paper by ordering a smaller font on dockets, and Myer now uses double sided printing. Page 21.
The Australian Bankers Association (ABA) last week agreed to set up a telephone hotline for chief executives to use when a major financial services industry announcement is made by the Federal Government or Opposition. ABA chief executive Steven Munchenberg said the ABA would not comment on discussions at council meetings. 'Not surprisingly, though, we have put in place a number of procedures to deal with any significant announcements during an election campaign,' Mr Munchenberg said.
Page 23.
Australia's largest investment bank Macquarie Group announced a profit downgrade on Friday, warning that three of its key businesses were struggling. The group said it was unlikely to meet earnings expectations, and planned to use its balance sheet for more corporate lending deals. Macquarie Group's A$29 billion cash management trust was transferred to its balance sheet on the weekend to provide more working capital. Page 23.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Companies are set to reveal how their profits fared in the six months to June as reporting season kicks off this week, but analysts warn that many businesses have experienced tough economic conditions. Mining giant Rio Tinto, media company News Corporation, and financial services company AXA Asia-Pacific are among those to report this week. UBS strategist David Cassidy expects results for the media sector to be well placed. Mr Cassidy forecast earnings-per-share growth of 6 percent across the market for the 2010 fiscal year. Page B3.
Linc Energy, Australia's self proclaimed 'leader in clean coal technology,' will tomorrow sign a A$1 billion deal with India's Adani Enterprises for control of its Queensland coal asset. Adani chairman Guatam Adani, met Linc chief executive Peter Bond at the weekend where they reached an agreement on the sale of Linc's Galilee coal tenement. Linc has been trying to offload the non-core assets for sometime, after twice failing to sell them to separate Chinese parties. Page B3.
Gas supply and transmission company Epic Energy has an A$100 million pipeline expansion in sight, as the market awaits the findings of a strategic review that could put Epic up for sale.
Colin Atkin, chief operating officer of Epic's parent, the Hastings Diversified Utilities Fund, said demand for gas created options to pursue Epic's pipeline business. Mr Atkin said Epic was now considering the A$100 million investment to upgrade its Queensland pipeline, which connects core gas fields with customers in south east Australia. Page B5.
Speculation is rife that a report on the insolvency industry will make two 'bombshell' recommendations on the business and corporate regulator when it is released later this month. A Senate inquiry into the insolvency industry will release the report, which is expected to recommend that the Australian Securities and Investments Commission be stripped of its powers, and establish a new industry-specific regulator. It is also suspected to recommend that the insolvency industry's monopoly be open to competition. Page 8.
THE AGE (www.theage.com.au)
Prime Minister Julia Gillard has watered down core recommendations to overhaul the superannuation industry. Ms Gillard has endorsed MySuper, which industry funds hope will drive retail funds out of the market. But her policy differs from the recommendations in the Cooper review of superannuation by allowing super funds increased flexibility. This means that fund managers would invest younger workers' money in higher risk, higher return assets. Page 1.
The competition regulator has raised concerns about Qantas and South Africa Airways' monopoly on the Australia-Africa route. The two airliners are seeking to extend their code-sharing agreement for a further two years, but the Australian Competition and Consumer Commission said an increase in flights over the last 12 months raised questions about the continued need for code-sharing. Qantas and South Africa Airways were the only carriers to offer the direct route until V Australia entered the market in March. Page 3.
Healthcare operator Sigma Pharmaceuticals has received a new offer for its embattled generics business, valued at an estimated A$600 million. United States-based healthcare company Watson Pharmaceuticals, has run its eye over the business and is yet to make a formal takeover offer to purchase Sigma's generic drug assets. Sigma's drug business has been at the centre of three profit warnings and has been affected by heavy discounting and increased competition. Page 3.
Property information group BCI Australia has estimated that construction levels in Victoria and Tasmania will peak at A$4.56 million this year, and reach a similar level in 2011. A BCI report shows that the residential sectors in the two states were resilient in the wake of the economic downturn, with deferrals and abandoned projects at only between 5 and 10 percent. Page 7. --
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.