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.
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The A$2.16 billion Hope Downs iron ore project remains in doubt after Consolidated Minerals and 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.
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Outgoing British Airways chief 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.
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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.
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Lakes Oil is 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.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Commonwealth Bank of Australia chief 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.
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Krispy Kreme Australia has 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.
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The Western Australian Government is coming under increasing pressure to repeal its ban on uranium mining, with Kalgoorlie Boulder Resources joining other mining groups in seeking to acquire uranium exploration acreage in the state. Page 19.
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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.
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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.
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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.
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London's planned A$8.6 billion Stratford City development is rumoured to be in disarray following a dispute between the partners, including Westfield Holdings and 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.
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A source close to St George Bank yesterday 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.
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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.
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Jetstar Asia chief 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.
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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.
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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.
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Boom Logistics is 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.
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