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)
Queensland Treasurer Andrew Fraser and QR National chief executive Lance Hockridge yesterday launched the rail network's initial public offering. Mr Fraser said 'mum and dad investors' would receive a number of incentives, including lower pricing than that received by institutional investors, and bonus shares for retaining stakes for a specified length of time. The float's prospectus will be released on October 10. Page 15.
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Coalminers exporting through Queensland's Dalrymple Bay Coal Terminal are expected to fall short of the port's 86 million tonnes of annual capacity this year due to coal production problems, poor weather and rail infrastructure issues. The miners, including companies such as BHP Billiton, Rio Tinto and Anglo Coal, are also paying millions each week in demurrage fees for cargo vessels left idle off the coast.
Page 15.
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Internet service provider iiNet has written to the Federal Communications Minister, Stephen Conroy, urging the Government to conduct a cost-benefit analysis on the A$43 billion national broadband network (NBN). Steve Dalby, iiNet's chief regulatory officer, yesterday said that iiNet was a supporter of the NBN, and that such a study would silence many of its critics.
Page 16.
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Ian Kadish, chief executive of private hospital operator Pulse Health, on Friday announced that he was stepping down to take up a role with Primary Health Care. Mr Kadish said he had helped to turnaround Pulse - which last year reported a loss of A$6.16 million but has just recorded two consecutive months of profit - and that he hoped to produce similar changes through his role with Primary's Laverty Pathology business. Page 17
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Despite reports over the weekend that Australia and New Zealand Banking Group (ANZ) had completed due diligence on its proposed purchase of a US$4 billion controlling stake in Korean Exchange Bank, a finalised deal could take until November, according to observers. Although ANZ would be able to fund the purchase from existing reserves and debt, the bank is thought to be considering an equity issue in order to maintain its strong tier-one capital ratio. Page 21.
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Mining company BHP Billiton has attracted strong interest for its US$45 billion issue of syndicated debt, with the loan's lead managers on the weekend announcing that 25 global banks would share equally in providing the facility. Among the institutions are Australia's four major banks, which have each agreed to US$1.8 billion of potential funding. The loan will help finance BHP's proposed takeover of Potash Corp of Saskatchewan. Page 21.
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Charity clothing retailer St Vincent de Paul has been experiencing a boom over the two years since the global financial crisis. Sales increased by around 20 percent during 2009, and the charity says even as the economy has started to recover, it has retained around half of that increase. The retailer this month launched an advertising campaign, 'Styled by Vinnies' which aims to attract shoppers seeking vintage clothing and other items not found in mainstream stores. Page 22.
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Jonathan Coppel, an economic advisor to the Organisation for Economic Co-operation and Development's secretary general, has called for Australia to address its infrastructure deficit, which is 'impacting on the productivity performance of the whole economy.' Speaking at a conference in Sydney last week, Mr Coppel said that unless Australia's 'low productivity performance' is addressed, the country's future prosperity is under threat. Page 22.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Talks between power generation business Alinta Energy and creditors, who are owed about A$2.7 billion, continued last night. The company is expected to make an announcement by tomorrow, however if a deal cannot be reached, Alinta is most likely to be put into administration. Corporate raider Sir Ron Brierley's company GPG, which has a 19.9 per cent stake in the company, will be better off if Alinta - formerly known as Babcock & Brown Power - is put in to administration. Page B1.
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Insurance, motoring and travel company NRMA reported an A$80 million turnaround and posted a profit after tax of A$19.3 million, after a A$62 million loss in 2008/09. Despite almost flat revenue growth from operations and a growth of less than 1 percent in membership subscriptions, the turnaround was mostly driven by cost cutting in staff expenses and improved values in its investment portfolio. NRMA chief Tony Stuart said: 'This is a strong turnaround for the business in just 12 months.' Page B3.
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Chemical company Sinochem Group has reportedly asked the Chinese Government to back a bid for Potash Corp of Saskatchewan . The company will need between US$40 billion and US$60 billion to trump a hostile offer by the Australian-listed BHP Billiton for Potash Corp. According to a report in the Beijing-based Economic Observer yesterday, Sinochem argued that the Government should back a bid for the firm because potash is key to China's national food security. Page B3.
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The demerger of Australia's largest brewer Foster's Group is being watched closely by global brewing and bottling company SABMiller, after chief executive Graham Mackay yesterday admitted that he had done due diligence on the business. SABMiller owns the Foster's brand in India as well as its US brewing rights, and the company was considered the leading candidate to make a bid for Foster's beer division. Mr Mackay said he looked at all major acquisition opportunities, although he remained cautious about any takeover. Page B3.
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THE AGE (www.theage.com.au)
A report due to be released today on class actions in Australia dispels the myth that there are too many class actions being filed in the Federal Court and Victorian Supreme Court.
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Technology giant Google says that its foray into the A$800 million display advertising market is paying off. The company announced that 40 percent of the ads it serves on Australian websites, including on YouTube, are display ads.
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Melbourne's auction clearance rate slumped to 61 percent for the weekend ending September 12. According to Australian Property Monitors, it was the first week in 2010 where Sydney's clearance rate exceeded that of Melbourne's. If the difference in clearance rates continues for the rest of this month, Melbourne could lose its title as the auction capital; a result that has only been seen once in the last 10 years. Page B11.
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Research and analysis firm BIS Shrapnel yesterday released data on Australia's A$32 billion maintenance industry. Maintenance spending declined during the global financial crisis, but activity is expected to recover. BIS Shrapnel predicts that the sector is on the brink of a turnaround, and has forecast strong growth in mining, manufacturing and railways. Page B6
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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)
Queensland Treasurer Andrew Fraser and QR National chief executive Lance Hockridge yesterday launched the rail network's initial public offering. Mr Fraser said 'mum and dad investors' would receive a number of incentives, including lower pricing than that received by institutional investors, and bonus shares for retaining stakes for a specified length of time. The float's prospectus will be released on October 10. Page 15.
- - - -
Coalminers exporting through Queensland's Dalrymple Bay Coal Terminal are expected to fall short of the port's 86 million tonnes of annual capacity this year due to coal production problems, poor weather and rail infrastructure issues. The miners, including companies such as BHP Billiton, Rio Tinto and Anglo Coal, are also paying millions each week in demurrage fees for cargo vessels left idle off the coast.
Page 15.
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Internet service provider iiNet has written to the Federal Communications Minister, Stephen Conroy, urging the Government to conduct a cost-benefit analysis on the A$43 billion national broadband network (NBN). Steve Dalby, iiNet's chief regulatory officer, yesterday said that iiNet was a supporter of the NBN, and that such a study would silence many of its critics.
Page 16.
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Ian Kadish, chief executive of private hospital operator Pulse Health, on Friday announced that he was stepping down to take up a role with Primary Health Care. Mr Kadish said he had helped to turnaround Pulse - which last year reported a loss of A$6.16 million but has just recorded two consecutive months of profit - and that he hoped to produce similar changes through his role with Primary's Laverty Pathology business. Page 17
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Despite reports over the weekend that Australia and New Zealand Banking Group (ANZ) had completed due diligence on its proposed purchase of a US$4 billion controlling stake in Korean Exchange Bank, a finalised deal could take until November, according to observers. Although ANZ would be able to fund the purchase from existing reserves and debt, the bank is thought to be considering an equity issue in order to maintain its strong tier-one capital ratio. Page 21.
- - - -
Mining company BHP Billiton has attracted strong interest for its US$45 billion issue of syndicated debt, with the loan's lead managers on the weekend announcing that 25 global banks would share equally in providing the facility. Among the institutions are Australia's four major banks, which have each agreed to US$1.8 billion of potential funding. The loan will help finance BHP's proposed takeover of Potash Corp of Saskatchewan. Page 21.
- - - -
Charity clothing retailer St Vincent de Paul has been experiencing a boom over the two years since the global financial crisis. Sales increased by around 20 percent during 2009, and the charity says even as the economy has started to recover, it has retained around half of that increase. The retailer this month launched an advertising campaign, 'Styled by Vinnies' which aims to attract shoppers seeking vintage clothing and other items not found in mainstream stores. Page 22.
- - - -
Jonathan Coppel, an economic advisor to the Organisation for Economic Co-operation and Development's secretary general, has called for Australia to address its infrastructure deficit, which is 'impacting on the productivity performance of the whole economy.' Speaking at a conference in Sydney last week, Mr Coppel said that unless Australia's 'low productivity performance' is addressed, the country's future prosperity is under threat. Page 22.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Talks between power generation business Alinta Energy and creditors, who are owed about A$2.7 billion, continued last night. The company is expected to make an announcement by tomorrow, however if a deal cannot be reached, Alinta is most likely to be put into administration. Corporate raider Sir Ron Brierley's company GPG, which has a 19.9 per cent stake in the company, will be better off if Alinta - formerly known as Babcock & Brown Power - is put in to administration. Page B1.
- - -
Insurance, motoring and travel company NRMA reported an A$80 million turnaround and posted a profit after tax of A$19.3 million, after a A$62 million loss in 2008/09. Despite almost flat revenue growth from operations and a growth of less than 1 percent in membership subscriptions, the turnaround was mostly driven by cost cutting in staff expenses and improved values in its investment portfolio. NRMA chief Tony Stuart said: 'This is a strong turnaround for the business in just 12 months.' Page B3.
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Chemical company Sinochem Group has reportedly asked the Chinese Government to back a bid for Potash Corp of Saskatchewan . The company will need between US$40 billion and US$60 billion to trump a hostile offer by the Australian-listed BHP Billiton for Potash Corp. According to a report in the Beijing-based Economic Observer yesterday, Sinochem argued that the Government should back a bid for the firm because potash is key to China's national food security. Page B3.
- - - -
The demerger of Australia's largest brewer Foster's Group is being watched closely by global brewing and bottling company SABMiller, after chief executive Graham Mackay yesterday admitted that he had done due diligence on the business. SABMiller owns the Foster's brand in India as well as its US brewing rights, and the company was considered the leading candidate to make a bid for Foster's beer division. Mr Mackay said he looked at all major acquisition opportunities, although he remained cautious about any takeover. Page B3.
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THE AGE (www.theage.com.au)
A report due to be released today on class actions in Australia dispels the myth that there are too many class actions being filed in the Federal Court and Victorian Supreme Court.
- - - -
Technology giant Google says that its foray into the A$800 million display advertising market is paying off. The company announced that 40 percent of the ads it serves on Australian websites, including on YouTube, are display ads.
- - - -
Melbourne's auction clearance rate slumped to 61 percent for the weekend ending September 12. According to Australian Property Monitors, it was the first week in 2010 where Sydney's clearance rate exceeded that of Melbourne's. If the difference in clearance rates continues for the rest of this month, Melbourne could lose its title as the auction capital; a result that has only been seen once in the last 10 years. Page B11.
- - - -
Research and analysis firm BIS Shrapnel yesterday released data on Australia's A$32 billion maintenance industry. Maintenance spending declined during the global financial crisis, but activity is expected to recover. BIS Shrapnel predicts that the sector is on the brink of a turnaround, and has forecast strong growth in mining, manufacturing and railways. Page B6
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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.