PRESS DIGEST-Australian Business News - April 11
06:48, Monday, 11 April 2005
(Compiled for Reuters by Media Monitors)
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
The Australian Petroleum Production and Exploration
Association (APPEA) has warned that high global oil prices are
making it difficult for the Australian petroleum industry to
secure policy reforms necessary to stimulate new exploration and
more rapid development of known oil and gas fields. APPEA
chairman, Reg Nelson, said rising retail petrol prices had
generated 'negative perceptions' of oil and gas companies and
made it hard for the industry to gain support for exploration and
development incentives. Page 11.
--
Virgin Bluehas awarded its A$100 million heavy
maintenance contract to Air New Zealand, dashing
expectations it would establish a 500 employee-strong base in
Australia. Virgin Blue is understood to have signed a three-year
deal with AirNZ for all major maintenance work, including its
regular 18-month C checks and the more intensive five-year D
checks, which cost approximately A$1 million per plane. Page 11.
--
A parliamentary inquiry in the United Kingdom (UK) has
criticised the structure of Macquarie Infrastructure Group'sUK toll road investment and dampened expectations for
another privately owned and operated road. The House of Commons'
transport committee raised concerns about the lack of control the
British Government had over the pricing of the M6 Toll. The
committee findings echoed the concerns of Canada's Ontario
provincial government, which unsuccessfully pursued MIG through
the Canadian court system in a bid to gain the right to dictate
tolls on Highway 407. Page 12.
--
The Fonterra board will meet tomorrow to finalise the
strategy for its takeover battle with San Miguel Corp.
for National Foods. Fonterra is expected to announce an
extension of its bid today to give itself more time to consider
whether to try and beat San Miguel's A$6.40-a-share cash offer.
National Foods chairman, David Crawford, announced on Friday
that all of the directors of the company intended to accept the
San Miguel offer in the absence of a superior proposal. Page 12.
--
Hancock Prospecting, the private company of Australia's
richest woman, Gina Rinehart, is believed to be in negotiations
with China's largest steel maker, Baosteel <600019.SS>, to gain
its support for the A$2 billion Hope Downs iron ore project in
Western Australia. Baosteel is understood to be acting as lead
negotiator in the discussion on behalf of a number of Chinese
steel mills and trading houses. Page 13.
--
THE AUSTRALIAN (www.theaustralian.news.com.au)
The mining industry has outlined a A$3.2 billion proposal for
improving infrastructure at the coal port of Dalrymple Bay,
Queensland, in order to increase exports from the port by 60 per
cent. Macarthur Coalmanaging director, Ken Talbot,
said about 50 ships were currently waiting out at sea in
Dalrymple Bay due to blockages at the port. Mr Talbot said most
miners were convinced there would be long-term demand for
Australian coal and that prices would remain at current high
levels. Page 25.
--
Federal Resources Minister, Ian Macfarlane, will this week
meet his West Australian counterpart, Alan Carpenter, to resolve
a dispute between Korean woodchip exporter, Hansol PI, and the WA
Government over coal shipments from Bunbury Port. A spokeswoman
for Mr Macfarlane said the Federal Government had been forced to
intervene in the dispute because it was putting in doubt elements
of Australia's trade relationships with South Korea. Page 25.
--
Westpac Bankchief executive, David Morgan, has
revealed a shake-up in the retail side of the bank following a
fall-off in home loans. Mr Morgan said Westpac had instituted
'some management changes and some restructuring in retail' to
gain a better focus on its mortgages businesses. Mr Morgan also
indicated Westpac intended to largely avoid the riskier
low-documentation loan market. Page 26.
--
Ray Williams and Rodney Adler could become the first
directors of HIH Insurance to go to jail this week, with both
facing sentencing decisions in the New South Wales Supreme Court.
Mr Adler will receive his sentence on Thursday, with Mr Williams
to be sentenced on Friday. Former senior HIH executive, William
Howard, received a three-year jail term in 2003 on two counts of
criminal misconduct, but had his sentence suspended after
agreeing to assist the investigation into the collapse of HIH.
Page 27.
--
THE SYDNEY MORNING HERALD (www.smh.com.au)
There is increasing speculation Coles Myeris
building a stake in Foodland Associatedin readiness for
an attempt to take over the Perth-based supermarket chain's New
Zealand business. Analysts said UBS, which has assisted Coles
Myer in previous acquisitions, has been accumulating stock in
Foodland for a number of weeks. FW Holst retail analyst, David
Spry, said Foodland controlled around 40 per cent of the New
Zealand market and would be a strategic acquisition for Coles
Myer or rival retailer, Woolworths. Page 32.
--
AMP Capital Investors chief economist, Shane Oliver,
yesterday predicted the Australian sharemarket would continue to
move higher after the correction in March, with the valuation of
Australian stocks remaining favourable and the grossed-up
dividend yield attractive compared with other investment
alternatives. Dr Oliver said the rise would be slower than last
year, but 'the China story supporting our resources shares is not
going to go away.' Page 33.
--
Hardman Resources chief executive, Simon Potter, yesterday
announced the company had initiated legal action against its
Mauritania offshore oil joint venture partner, Woodside
Petroleum, in relation to the recovery of costs. Mr Potter said
Hardman had taken the action 'reluctantly' to 'break a deadlock,'
but that the action was 'a one-off situation' that would not
affect the 'good' working relationship Hardman 'will continue to
enjoy' with Woodside. Page 34.
--
Organisation of Petroleum Exporting Countries (OPEC) acting
general secretary, Adnan Shihab-Eldin, yesterday told the
Australian Broadcasting Corporation's Inside Business program
that OPEC believed a 'fear factor' was driving up the price of
oil, with prices set to reach up to US$105-a-barrel. Mr
Shihab-Eldin said OPEC was increasing its spare production
capacity and wanted to bring prices down 'to a moderate level.'
Page 34.
--
THE AGE (www.theage.com.au)
Hardman Resourceshas launched legal action against
its partner Woodside Petroleum in the West Australian Supreme
Court over costs in their Mauritania offshore oil venture.
Hardman said its subsidiary, Hardman Chinguetti Production, had
not been able to reach agreement with Woodside Mauritania despite
'considerable discussion and correspondence' since late 2003.
Hardman is seeking A$23.5 million in a dispute over how costs
relating to the Mauritania venture should be recovered. Page 10.
--
A Victorian Government study has found up to A$300 million
was stripped from the state's automotive parts industry in
2003-04 due to pressure from carmakers to reduce prices, free
trade agreements and the strong Australian dollar. The amount is
equal to five per cent of the industry's A$6 billion revenue,
with the study indicating the figure will rise to 8.4 per cent
next year. Page 10.
--
Australian biotechnology companies are experiencing falling
shareprices as investors reduce their exposure to risky stocks
amid concerns about the nation's economic outlook. eG Capital
said Australian biotech companies had well underperformed on the
Australian Stock Exchange's Small Ordinaries Index in the past
six months. Australian Cancer Technology saw its shareprice fall
45 per cent in the first quarter, with Occupational Medical
Innovations' shareprice down 44 per cent and Clover Corporation's
stock down 40 per cent. Page 11.
--
The video game industry is expected to overtake the CD music
industry in Australia this year, with video game turnover
predicted to be worth A$850 million. Electronic Arts Australia
general manager, Ryan Jones, said the gaming market was starting
to mature, with women now accounting for 55 per cent of all game
buyers and the average consumer age reaching the 25-28 years
bracket. Page 11.
--
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
REUTER NEWS SERVICE
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