press digest australian business news june 22

PRESS DIGEST Australian Business News June 22
07:13, Friday, June 22, 2007

(Compiled for Reuters by Media Monitors)

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Brambles has defended its capital returns and
acquisitions strategies, saying they are a result of extensive
consultation and a desire to make careful decisions. The global
pallet supplier?s chief executive, David Turner, said it was
difficult to acquire businesses that could be as successful as
its CHEP pallet business and document management business,
Recall, so an on-market share buyback was considered the best
means of returning surplus cash. Shareholders expressed their
disappointment with Brambles? position as shares closed A55 cents
lower to A$12.08 yesterday. Page 66.

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Telstra is preparing to relaunch its mobile
retailing strategy after creating a new executive role and
signing new dealer contracts. The telecommunications carrier has
appointed Andy Ellis, former European head for operations at
British home entertainment retailer, Dixons, as chief executive
retail, and signed contracts with two new resellers, music and
electrical retailer, JB Hi-Fi , and Victorian-based
dealer, Mr Digital. Mr Ellis, who will oversee Telstra shop
refurbishments and new store openings, will begin with Telstra on
August 6. Page 66.

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Ramsay Health Care may consider buying parts of
Symbion Health if the competition regulator rules current bidder
for the target, Healthscope, will be required to divest parts of
the health products and services provider if the deal proceeds.
Under the current proposal, Healthscope will keep
Symbion's pathology and diagnostics division, but sell
the consumer and pharmacy divisions to two private equity firms.
However, if conditions placed on the deal cause the transaction
to be terminated, Ramsay could partner Sigma Pharmaceuticals
on an alternative bid. Page 66.

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Packaging company, Amcor , will see its presence in
Asia grow if shareholders in Hong Hong affiliate, AMVIG, approve
the purchases of several businesses in China totalling HK$1.55
billion (A$235 million). Amcor chief executive, Ken MacKenzie,
said tobacco packaging provided strategic growth opportunities in
Asia and other developing markets such as Eastern Europe, where
the company is already market leader. Although ratings agency,
Moody?s Investor Services, downgraded the company's credit rating
yesterday, Amcor shares rose A2 cents to A$7.40. Page 66.

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

Private equity group, Newbridge Capital, could reap A$300
million from the sale of its Myer department store property in
central Melbourne, which will be redeveloped over the next two
years and reopened after a A$1.2 billion renovation. The trophy
site, in the Bourke Street Mall shopping precinct, was bought by
the Commonwealth Bank's retail property trust and Singapore
investor, GIC, for almost A$600 million. Two years ago, Newbridge
is thought to have paid A$300 million for the site, which was
unsuccessfully offered for sale last year. Page 19.

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IOOF yesterday announced it expects underlying net
profit to rise by more than 20 percent this financial year to
A$30 million. The funds management company's chief executive,
Tony Robinson, said despite superannuation reforms not reflecting
"a tidal wave of funds people talked about" and short-term costs
arising from acquisition of the remaining minority interest in
fund manager, Perennial, "strong cost control, strong fund
inflows and above budgeted investment market performance" were
underpinning confidence. Shares in IOOF rose A6 cents to A$9.85
yesterday. Page 20.

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The Sydney Chamber of Commerce yesterday said regional areas
in New South Wales are hoping to attract Sydney tourists during
the Asia-Pacific Economic Cooperation meeting. The industry group
said wine region, the Hunter Valley, was already offering
attractive three-day holiday packages to cater for central Sydney
workers given a public holiday on the first day of the event,
Friday, September 7. The chamber added commercial centres outside
central Sydney should expect "bumper" trading over the period as
affected workers planned to shop closer to home. Page 20.

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The Bank of Queensland (BoQ) says a merger with
Bendigo Bank will no longer be pursued after the
northern suitor's revised proposal was rejected by its Victorian
rival. "We're disappointed, but we're now going to move on and
concentrate on our existing business," said BoQ chief executive,
David Liddy. Analysts say discussions over the past few weeks
led BoQ to make a cash bid that exceeded the A$17.92 a share
equivalent of its unsuccessful mixed cash and scrip offer in
March, but this was also rejected by Bendigo Bank. Page 20.

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