press digest: australian business news: aug 29

PRESS DIGEST: Australian Business News: Aug 29
06:49, Tuesday, 29 August 2006

(Compiled for Reuters by Media Monitors)
--

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Telstra chief executive, Sol Trujillo, says he will
appeal against the competition regulator's ruling that rivals
should be charged less to use the phone company's copper-wire
network, arguing it will 'destroy value for shareholders.' Media
analysts fear the ruling will test Telstra's agreement not to use
the Federal Government's A$8 billion share sale to agitate for
regulatory reform. Opposition Leader, Kim Beazley, agreed with
Mr Trujillo that the dispute was hampering negotiations over
investment in faster broadband services. Page 1.

-- Federal Opposition revenue spokesman, Joel Fitzgibbon,
says revelations about retailer, Coles Myer , becoming a
foreign takeover target vindicate Australian Labor Party concerns
about proposed capital gains tax changes for foreign investors.
The Opposition believes foreign shareholders should not be
permitted tax concessions when exiting their investment after
three to five years. A takeover bid for Coles is now likely
after American private equity firms indicated they were preparing
an enlarged group offer. Page 12.

-- Tote operator, Tabcorp , has compensated for a
failed takeover bid for rival, UniTab, by negotiating a
multi-layered deal with the New Zealand Racing Board. 'Australia
and New Zealand have some of the best racing in the world [so]
there is an opportunity to take it to more markets,' said Tabcorp
chief executive, Matthew Slatter. Mr Slatter said a two-hour
time difference between the t countries would help the
distribution of Australia's racing product throughout the
Asia-Pacific. Page 12.

-- Australia's largest private hospital operator, Ramsay
Health Care , may spend up to A$400 million on expanding
capacity at its key domestic facilities and accelerate offshore
expansion, after posting a 177 per cent rise in full-year profit.
'We believe returns at big hospitals in good socio-economic
areas will be super,' said Ramsay chief executive, Pat Grier. Mr
Grier added acquisitions in Indonesia were performing well and
provided a solid base for further expansion into Asia. Page 13.



-- THE AUSTRALIAN (www.theaustralian.news.com.au)

Shares in telecommunications provider, Telstra, closed steady
yesterday, despite concern a five-week delay on this year's
dividend announcement and an ongoing regulatory dispute with the
Federal Government would impact on Telstra's value. 'In the
absence of further detail...we would not be buyers of the stock,'
investment bank, Citigroup, advised. Cabinet is seeking to
ensure Telstra does not overcharge rivals for use of its copper
wire-network, ahead of the upcoming float of 18 per cent of the
Government's holding. Page 21.

-- A profit announcement well above guidance from childcare
provider, ABC Learning , failed to prevent a 4.5 per cent
drop in ABC's shareprice yesterday. Analysts attributed the fall
to ABC's failure to indicate the company's prospects for the
current year. While reaffirming long-term targets for opening
new centres, ABC also failed to give firm guidance on its
American operations, amid claims it is still in the process of
increasing acquisitions in that country. Page 23.

-- Gold miner, Newmont , and Tasmanian
Government-owned utility, Aurora Energy, have agreed to forgive
debts owed by Allstate Explorations in a bid to improve chances
the Beaconsfield gold mine, the scene of a mining accident in
April, will be reopened. Beaconsfield Gold, the junior partner
in management of the mine, is believed to have secured equity for
a bid to purchase Allstate's 31 per cent majority share. Page
23.

-- Domestic carrier, Virgin Blue , is hopeful a
partnership with Malaysia Airlines (MAS) will gain its passengers
access to 47 MAS flights per week into five Australian cities.
Virgin Blue chief executive, Brett Godrey, said upgrades of
reservations and other systems were improving the carrier's
capacity to negotiate partnerships with other airlines. Virgin
Blue currently has a small code-sharing alliance with United
Airlines and an agreement with Virgin Atlantic on flights into
Sydney. Page 23.

-- THE SYDNEY MORNING HERALD (www.smh.com.au)

The acquisition of wine producer, Southcorp, and a global
wine glut may have left Australian brewer, Foster's Group
, open to takeover bids from the world's two largest
brewers, InBev and SABMiller. InBev and SABMiller
have both expressed interest in expanding into the
Asia-Pacific region, with SABMiller having already formed a joint
venture with Coca-Cola Amatil Australia earlier this
month. Foster's is expected to announce a revamp of its wine
operations during its full-year profit announcement today. Page
17.

-- Specialist entertainment asset investor, Macquarie Leisure
Trust , has initiated expansion into the United States by
purchasing Texan tenpin bowling operator, Main Event
Entertainment Holdings. 'Main Event enjoys a good spread of
visitors and activities from kids' parties to upmarket corporate
events,' said Macquarie Leisure chief executive, Greg Shaw. Mr
Shaw said Main Event would complement Macquarie Leisure's
ownership of AMF bowling alleys across Australia. Page 18.

-- Shares in Austereo closed 3.42 per cent higher
after the commercial radio broadcaster posted a 3.1 per cent rise
in profit for the year to June 2006, and forecast a two per cent
rise in capital-city advertising revenue growth for the first
half of 2006-07. Page 19.

-- Allco Finance Group, which invests in aviation, shipping,
rail and property assets, reported a 57 per cent boost in annual
profit yesterday. Allco said further expansion into the global
aviation market would provide opportunities for additional
growth. 'We see the aviation market growing [and] deal flow
remains very strong,' said managing director, David Coe. Mr Coe
believes that increased passenger travel in China, and orders by
airlines for new planes in Asia, are signs the adverse effects of
higher petrol prices are easing. Page 19.

-- THE AGE (www.theage.com.au)

Australia's largest banks may adopt a new model for
reorganising their assets into 'non-operating holding companies'
(NOHC) in response to recent changes to the way in which
households save or spend their money. In 1997, the Federal
Government-commissioned Wallis Inquiry recommended NOHCs be
allowed, to help banks manage their investment risks and to
foster greater banking industry competition. National Australia
Bank , Commonwealth Bank and Macquarie Bank
will be the first to adopt the new model. Page B1.

-- Corporate and investment bank, Rabobank, says its rural
confidence survey for the previous quarter shows that farmers
remain worried about the economic future, as dry conditions and
high petrol prices continue to raise input costs. 'Rain in
spring will be critical to the winter cropping season, pasture
and water supplies for livestock,' said Rabobank rural banking
head, Neil Dobbin. Fears are mounting that many farmers will
leave rural industries unless the weather outlook becomes more
favourable. Page B2.

-- Car parts and accessories distributor, Repco , has
cancelled its final dividend after second-half earnings slumped.
'We are pausing new store openings so we can focus on improving
our trade business and our retail offering,' said Repco chief
executive, Graeme Yeomans. Mr Yeomans attributed the
'disappointing' result to the cost of expanding its store network
as well as higher petrol prices, which were prompting car owners
to defer repairs. Repco will put A$14.4 million in surplus
capital towards paying off debt. Page B2.

-- American pharmaceutical companies have seized on a
commitment to the United States (US) free trade agreement (FTA)
by new United States ambassador, Robert McCallum, to renew their
push for better access to the Australian medicine market. 'We
don't view this as being a dead issue,' Mr McCallum said
yesterday, despite the collapse of the recent Doha round of trade
talks. Critics of the FTA say US drug companies seek to
dismantle the Pharmaceutical Benefits Scheme, under which the
Federal Government subsidises drugs. Page B2.