PRESS DIGEST-Australian Business News - June 14
06:43, Tuesday, 14 June 2005
(Compiled for Reuters by Media Monitors)
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Stockmarket opportunist, David Tweed, has written to the
board of Tattersall's requesting a copy of its share register as
the retail offer for the gaming giant's A$2 billion float gathers
pace. Mr Tweed, who is known for making below-market value
offers for shares, is using a company called National Share
Purchasing Corp as the vehicle for his bid to acquire
Tattersall's stock. Page 14.
--
The A$2.16 billion Hope Downs iron ore project remains in
doubt after Consolidated Mineralsand Noble Resources failed to close a deal with Australia's richest woman,
Gina Rinehart, at the weekend. ConsMin has placed a formal
proposal before Ms Rinehart that might see it and Noble Resources
emerge with Kumba Resources' 49 percent stake in the proposed
Western Australian project, but is understood to be seeking a 50
per cent stake and joint project development. Page 14.
--
Outgoing British Airwayschief executive, Rod
Eddington, yesterday warned that the Australia-United States (US)
route was not a never-ending 'goldmine' for airlines. Sir Rod
said the Pacific route had been 'extremely difficult' in the
early 1990s, with a number of US airlines unable to make it
profitable. Page 15.
--
Fonterra is setting up a new milk-collection business in
Australia in a bid to lure more dairy farmers onto its books. The
New Zealand-based dairy group has formed Fonterra Milk Australia
(FMA) as part of a strategy to expand its share of the Australian
fresh milk market from 16 percent and pressure smaller rivals in
the A$9 billion sector. Page 18.
--
Lakes Oilis set to begin one of Victoria's most
significant onshore oil and gas exploration programs with a
four-well drilling program and new tests on its Wombat and Trifon
fields east of Melbourne. The Gippsland oil explorer is also
interested in fracturing a zone in the recent Wombat 3 well that
produced crude oil, the first onshore well in the region to
produce oil. To fund the exploration, Lakes Oil has issued 119.7
million shares to raise a total of A$2.6 million. Page 19.
--
THE AUSTRALIAN (www.theaustralian.news.com.au)
Commonwealth Bank of Australiachief executive,
David Murray, is expected to announce his retirement today after
13 years in the position and 40 years with the bank. Mr Murray
would walk away from the to job with at least A$25 million in
accumulated shares and options and possibly as much again in
retirement benefits. Mr Murray last renewed his contract in
2001, before new governance rules requiring chief executives'
retirement benefits to be fully disclosed. Page 17.
--
Krispy Kreme Australiahas slowed its expansion plans
as its U.S. parent deals with its failed Canadian business. Plans
by the doughnut maker to open 18 stores in Sydney and Melbourne
by the end of 2005 have been pushed back to 2006. Page 17.
--
The Western Australian Government is coming under increasing
pressure to repeal its ban on uranium mining, with Kalgoorlie
Boulder Resourcesjoining other mining groups in seeking
to acquire uranium exploration acreage in the state. Page 19.
--
Austrade chief economist, Tim Harcourt, yesterday said
Australia's new free trade agreement (FTA) with Thailand had led
to a 'booming' 70 percent increase in exports in the nine months
to March 2005. Mr Harcourt said the biggest gain was in mineral
exports, up 126 per cent. Page 19.
--
The Federal Government has urged businesses facing labour
shortages to hire more disabled people and take advantage of new
workplace benefits and Government assistance. Workplace
Relations Minister, Kevin Andrews, said businesses needed to work
with the Employer Roundtable for People with Disabilities to help
create more positions for the disabled. Page 21.
--
THE SYDNEY MORNING HERALD (www.smh.com.au)
Ferrier Hodgson partners, Peter Walker and Steve Sherman,
have begun court action over their payment for winding up
telephone company, One.Tel. The liquidators were paid A$10.3
million for the work from the collapse of One.Tel in May 2001
until September 2004, but have received nothing since due to
disputes with former One.Tel executive, Kevin Beck, and 18 minor
creditors. Page 19.
--
London's planned A$8.6 billion Stratford City development is
rumoured to be in disarray following a dispute between the
partners, including Westfield Holdingsand Multiplex
Group. London's Sunday Telegraph newspaper has reported
an 'acrimonious' dispute had broken out between the development
partners and quoted a senior consortium executive as saying the
situation was 'highly unstable.' Page 19.
--
A source close to St George Bankyesterday
downplayed speculation that the bank's chief executive, Gail
Kelly, was a hot favourite to replace Commonwealth Bank of
Australia chief executive, David Murray. Ms Kelly is
well-regarded by CBA's new chairman, John Schubert, and
previously spent five years in CBA's retail bank. Page 19.
--
Market analysts are expecting shares in agricultural
companies to rise this week, with rains at the weekend allowing
east coast farmers to plant winter crops. Agricultural shares
have fallen sharply in recent months after a number of major
grain and rural services businesses issued profit downgrades due
to the drought. Commonwealth Securities analyst, Craig James,
said the rain was a welcome development for the national economy,
but warned that the drought could still cut Australia's economic
growth by one percent. Page 20.
--
Jetstar Asiachief executive, Ken Ryan, yesterday
said the airline was being blocked from flying to key Asian
destinations, including Shanghai, Jakarta and Surabaya. Mr Ryan
rejected Singapore Government assertions that the budget carrier
had failed to take up services on four routes it had been granted
permission to fly, stating that the routes were 'developmental'
and 'anyone who flies there will lose money hand over fist.'
Page 20.
--
THE AGE (www.theage.com.au)
The Commonwealth Bank of Australia board is expected to make
a final decision on its next chief executive at a meeting today.
JPMorgan analysts believe CBA will choose from a number of
internal and external candidates, with a strong chance a
non-Australian will be selected. Page B1.
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The Singapore Government has rejected Jetstar Asia's
complaints about a lack of access into key Asian markets,
questioning why the Qantas Airways subsidiary is not flying to
the four extra destinations for which it has been granted
permission. Page B1.
--
St James Ethics Centre's Simon Longstaff yesterday said
Australian companies engaged in business in China faced tough
ethical dilemmas and not all were up to the challenge. Professor
Longstaff said a number of companies were failing to meet their
ethical responsibilities when confronted with corruption, poor
labour conditions and political pressure within China. Page B2.
--
Boom Logisticsis continuing to expand through
acquisitions, with the crane operator taking over Cameron Cranes
and Carrington Steel. The two firms are expected to have A$5
million in combined revenue in the financial year to June 30.
Page B2.
--
Looking for more information from local sources? Factiva.com
has 112 Australian sources including the Australian Financial
Review.
((Reuters Sydney Newsroom, 61-2 9373 1800,
[email protected]))
(c) Reuters Limited 2005
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