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 Australian Securities and Investments Commission has received a letter alleging that Leighton Holdings of problems with the Airport Link tunnel project before it announced a profit downgrade last month. The claim was made by the Kalinga Wooloowin Residents Association, which is also seeking to make public the minutes of City North Infrastructure board meetings, the government body which approved the construction tender. Page 14.
Federal Treasurer Wayne Swan was called on over the weekend to 'do the right thing by local cane growers' and act to prevent a Chinese company acquiring sugar maker Tully Sugar. Independent MP Bob Katter said the A$126.7 million takeover bid by Chinese government-backed food maker COFCO was 'extremely serious.' A COFCO spokesperson was confident the bid would be accepted by the Foreign Investment Review Board. Page 14.
A A$1.5 billion native title agreement that will allow Woodside Petroleum to process liquefied natural gas at James Price Point was hailed as a break through yesterday, but concerns lingered over other aspects of the Browse development, such as a disagreement between the project partners over the processing site and cost overruns. The native title agreement was deemed to be highly significant by West Australian Premier Colin Barnett. Page 14.
Witchery Group chief executive Iain Nairn was optimistic for the future of the fashion retailer yesterday, despite reduced levels of discretionary spending and heavy discounting to start the year. Mr Nairn said the business had 'a list of at least 60 sites still available', and that the label's owner was looking to expand overseas after some success in South Africa. 'It's all about consumer confidence. Hardly anyone has said they are doing well,' he said. Page 16.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Australia and New Zealand Banking Group chief executive Mike Smith yesterday said he expected the Australian dollar to continue its rise against the United States (US) dollar, despite its fall in value last week. Mr Smith said the local currency's strength was being highlighted by the weakness of the US dollar. Currency analyst Savvas Savouri from hedge fund Toscafund said the Australian dollar could reach US$1.70 by 2014. Page 23.
Analysts from investment bank Macquarie Group last week upgraded their recommendation on Atlas Iron to 'outperform' following the mining company's presentation at a Macquarie conference. Macquarie analyst Martin Stulpner said, 'Atlas Iron's management has shown flexibility and innovativeness in progressing the ramp-up to 6 million tonnes per annum capacity by end 2010, and positioning the business for growth.' Page 24.
Explosives and fertiliser group Incitec Pivot is expected to announce a delay to first production at its new ammonium nitrate facility in Queensland. The A$935 million plant at Moranbah was scheduled to begin production in March next year, but the impact of continuing excessive wet weather in the region is likely to force the company to announce a delay when it releases first-half results today. Page 25.
Gaming and casino group Crown Ltd is expected to soon announce plans for a A$100 million expansion of gaming operations at Melbourne's Crown Casino. The proposed expansion is understood to have received board approval last week and is part of a move to broaden the casino's appeal to mass-market gamblers. The latest proposal is part of more than A$1.5 billion in capital expenditure by Crown on its Australian casinos between 2009 and 2013. Page 25.
THE SYDNEY MORNING HERALD (www.smh.com.au)
An inquiry by the Productivity Commission last week heard a submission from the nation's biggest retail union that the goods and services tax (GST) should apply to all online purchases. The Shop, Distributive and Allied Employees Association said the tax exemption was damaging to 'bricks and mortar' retailers. Prime Minister Julia Gillard has said collecting GST on online purchases under A$1000 would cost more than it would generate. Page B1.
A termination payout to Boart Longyear chief executive Craig Kipp may come under scrutiny at the mining services firm's annual meeting this week. Shareholders have been advised by advisers ISS Governance to reject the payout because it is based on an 'excise tax gross up.' This form of payout was opposed because 'the excise tax is calculated based on the benefits you get, including from listing on a change of control,' a source said. Page B3.
The Australian Taxation Office's multi-agency tax evasion taskforce is investigating two insolvency advisers in relation to the liquidation of two businesses, it was revealed yesterday. Project Wickenby alleged that liquidators Paul Vartelas and Barry Taylor conducted an 'inadequate' audit of two collapsed firms owned by Paul Rennie. Mr Rennie, who has already had A$40 million worth of assets frozen by the tax office, is expected to be charged with tax evasion. Page B3.
The world's largest uranium producer, Cameco, has warned that demand for atomic energy has decreased since the Fukushima nuclear accident. The news comes as mining giant BHP Billiton prepares to embark on a A$30 billion expansion of the Olympic Dam uranium mine in South Australia. 'Almost every country with a nuclear program or contemplating a nuclear program has said it will take time to review existing and new plant designs,' Cameco said. Page B4.
THE AGE (www.theage.com.au)
The demerger tomorrow of Foster's Group's wine and beer divisions will see the revival of the century-old Carlton & United Breweries (CUB) brand. 'We have the opportunity to once again make CUB Australia's best-loved beer company,' Foster's managing director John Pollaers said. The A$11 billion demerger will see Foster's wine division, Treasury Wine Estates, floated on the Australian Securities Exchange this week. Page B3.
The Federal Court dismissed an attempt on Friday to have Equititrust Income Fund wound up, with the judge awarding costs against the applicant, Rural Security Holdings. Unit holders, who have lost A$2 for every A$3 invested, are awaiting the findings of a review into the remaining A$260 million in assets held by the troubled mortgage fund. Law firm Piper Alderman said it has sourced financing for a potential class action. Page B4.
A takeover bid by investment firms Macquarie and Carlyle Group for Redflex is expected to be voted down today by shareholders. The A$305 million bid for the red light camera company is seen as unsatisfactory by former chairman Chris Cooper and possibly other investors, including Cheng Man Oy and Investec. 'I have to vote against it,' Mr Cooper said. 'I suspect there are a number of other shareholders who share my view.' Page B5.
Retail sales grew 3.7 percent in Victoria last year, bucking a trend towards conservative consumption, according to data from CB Richard Ellis (CBRE). The Melbourne Central Business District (CBD) Retail Viewpoint report also noted that rents for super prime retail locations rose for the third consecutive quarter. 'The Melbourne CBD retail market is expected to remain a strong performer in 2011,' CBRE researcher Erin Obliubek said. Page B8.
Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1816; sydney.newsroom@allreleases.net) COPYRIGHT Copyright Thomson Reuters 2011. 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 Australian Securities and Investments Commission has received a letter alleging that Leighton Holdings of problems with the Airport Link tunnel project before it announced a profit downgrade last month. The claim was made by the Kalinga Wooloowin Residents Association, which is also seeking to make public the minutes of City North Infrastructure board meetings, the government body which approved the construction tender. Page 14.
Federal Treasurer Wayne Swan was called on over the weekend to 'do the right thing by local cane growers' and act to prevent a Chinese company acquiring sugar maker Tully Sugar. Independent MP Bob Katter said the A$126.7 million takeover bid by Chinese government-backed food maker COFCO was 'extremely serious.' A COFCO spokesperson was confident the bid would be accepted by the Foreign Investment Review Board. Page 14.
A A$1.5 billion native title agreement that will allow Woodside Petroleum to process liquefied natural gas at James Price Point was hailed as a break through yesterday, but concerns lingered over other aspects of the Browse development, such as a disagreement between the project partners over the processing site and cost overruns. The native title agreement was deemed to be highly significant by West Australian Premier Colin Barnett. Page 14.
Witchery Group chief executive Iain Nairn was optimistic for the future of the fashion retailer yesterday, despite reduced levels of discretionary spending and heavy discounting to start the year. Mr Nairn said the business had 'a list of at least 60 sites still available', and that the label's owner was looking to expand overseas after some success in South Africa. 'It's all about consumer confidence. Hardly anyone has said they are doing well,' he said. Page 16.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Australia and New Zealand Banking Group chief executive Mike Smith yesterday said he expected the Australian dollar to continue its rise against the United States (US) dollar, despite its fall in value last week. Mr Smith said the local currency's strength was being highlighted by the weakness of the US dollar. Currency analyst Savvas Savouri from hedge fund Toscafund said the Australian dollar could reach US$1.70 by 2014. Page 23.
Analysts from investment bank Macquarie Group last week upgraded their recommendation on Atlas Iron to 'outperform' following the mining company's presentation at a Macquarie conference. Macquarie analyst Martin Stulpner said, 'Atlas Iron's management has shown flexibility and innovativeness in progressing the ramp-up to 6 million tonnes per annum capacity by end 2010, and positioning the business for growth.' Page 24.
Explosives and fertiliser group Incitec Pivot is expected to announce a delay to first production at its new ammonium nitrate facility in Queensland. The A$935 million plant at Moranbah was scheduled to begin production in March next year, but the impact of continuing excessive wet weather in the region is likely to force the company to announce a delay when it releases first-half results today. Page 25.
Gaming and casino group Crown Ltd is expected to soon announce plans for a A$100 million expansion of gaming operations at Melbourne's Crown Casino. The proposed expansion is understood to have received board approval last week and is part of a move to broaden the casino's appeal to mass-market gamblers. The latest proposal is part of more than A$1.5 billion in capital expenditure by Crown on its Australian casinos between 2009 and 2013. Page 25.
THE SYDNEY MORNING HERALD (www.smh.com.au)
An inquiry by the Productivity Commission last week heard a submission from the nation's biggest retail union that the goods and services tax (GST) should apply to all online purchases. The Shop, Distributive and Allied Employees Association said the tax exemption was damaging to 'bricks and mortar' retailers. Prime Minister Julia Gillard has said collecting GST on online purchases under A$1000 would cost more than it would generate. Page B1.
A termination payout to Boart Longyear chief executive Craig Kipp may come under scrutiny at the mining services firm's annual meeting this week. Shareholders have been advised by advisers ISS Governance to reject the payout because it is based on an 'excise tax gross up.' This form of payout was opposed because 'the excise tax is calculated based on the benefits you get, including from listing on a change of control,' a source said. Page B3.
The Australian Taxation Office's multi-agency tax evasion taskforce is investigating two insolvency advisers in relation to the liquidation of two businesses, it was revealed yesterday. Project Wickenby alleged that liquidators Paul Vartelas and Barry Taylor conducted an 'inadequate' audit of two collapsed firms owned by Paul Rennie. Mr Rennie, who has already had A$40 million worth of assets frozen by the tax office, is expected to be charged with tax evasion. Page B3.
The world's largest uranium producer, Cameco, has warned that demand for atomic energy has decreased since the Fukushima nuclear accident. The news comes as mining giant BHP Billiton prepares to embark on a A$30 billion expansion of the Olympic Dam uranium mine in South Australia. 'Almost every country with a nuclear program or contemplating a nuclear program has said it will take time to review existing and new plant designs,' Cameco said. Page B4.
THE AGE (www.theage.com.au)
The demerger tomorrow of Foster's Group's wine and beer divisions will see the revival of the century-old Carlton & United Breweries (CUB) brand. 'We have the opportunity to once again make CUB Australia's best-loved beer company,' Foster's managing director John Pollaers said. The A$11 billion demerger will see Foster's wine division, Treasury Wine Estates, floated on the Australian Securities Exchange this week. Page B3.
The Federal Court dismissed an attempt on Friday to have Equititrust Income Fund wound up, with the judge awarding costs against the applicant, Rural Security Holdings. Unit holders, who have lost A$2 for every A$3 invested, are awaiting the findings of a review into the remaining A$260 million in assets held by the troubled mortgage fund. Law firm Piper Alderman said it has sourced financing for a potential class action. Page B4.
A takeover bid by investment firms Macquarie and Carlyle Group for Redflex is expected to be voted down today by shareholders. The A$305 million bid for the red light camera company is seen as unsatisfactory by former chairman Chris Cooper and possibly other investors, including Cheng Man Oy and Investec. 'I have to vote against it,' Mr Cooper said. 'I suspect there are a number of other shareholders who share my view.' Page B5.
Retail sales grew 3.7 percent in Victoria last year, bucking a trend towards conservative consumption, according to data from CB Richard Ellis (CBRE). The Melbourne Central Business District (CBD) Retail Viewpoint report also noted that rents for super prime retail locations rose for the third consecutive quarter. 'The Melbourne CBD retail market is expected to remain a strong performer in 2011,' CBRE researcher Erin Obliubek said. Page B8.
Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1816; sydney.newsroom@allreleases.net) COPYRIGHT Copyright Thomson Reuters 2011. 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.