Ann: Trading Halt , page-83

.......Good read.......

Positive Market Reaction

Mr Jackman has been given the thumbs up from the market for selling his insurance business to QBE.

The Elders chief said it is the first step towards taking Australia's biggest rural services network back to its glory days.

"It takes some of the pressure off the balance sheet and gives me a little more time to divest other assets," said Mr Jackman, who became chief of Australia's largest rural services provider in October last year.

"Once we're through that, my financial services won't have the same capital requirements, so I can concentrate my investment in the core rural services business."

The Australian Prudential Regulation Authority requires all insurers to set aside sizable amounts of capital to cover sudden increases in claims.

Mr Jackman's first priority is to reduce the $1 billion of debt the company is carrying, with the QBE transaction allowing him to reduce that to about $700 million, a figure he describes as about half-way.

That will give him more time to sell automotive and forestry assets to reduce the debt further.

He then wants to focus on strengthening the rural service activities of Elders.

"We need to invest in that business," he said.

Mr Jackman said Elders is the world's largest wool broker, while it is also a huge player in livestock in Australia, and as an exporter.

"We are a big part of the bush and our staff are known as the pink shirts," he said.

"My sole ambition is to take this business back to its glory days.