press digest: australian business news: sept. 22

PRESS DIGEST: Australian Business News: Sept. 22
06:53, Friday, 22 September 2006

(Compiled for Reuters by Media Monitors)

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Mayne Pharma yesterday received a
higher-than-expected A$2.6 billion takeover offer from United
States industry giant, Hospira, which has been conducting due
diligence on the cancer-drug manufacturer over the past week. The
A$4.10-a-share bid is a substantial premium to Mayne's closing
shareprice before a trading halt earlier in the week.
Nevertheless, analysts have not ruled out the possibility of a
counter-bid, given Mayne's portfolio of specialist drugs and
access to European and North American markets. Page 58.

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Visy Industries will use a court statement by former Amcor
executive, James Hodgson, to corroborate its defence
against a cartel prosecution by the Australian Competition and
Consumer Commission. Mr Hodgson, who is suing Amcor for unfair
dismissal, claims Visy tendered below price floors in the
corrugated box market to steal customers from its rival.
According to Visy, this proves its case that the alleged cartel
was actually a price war between the two companies. It may also
call Mr Hodgson as witness. Page 58.

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The proposed sale of Primary Health Care's pathology
business to Symbion Health is in doubt, after negotiations broke
down over price. It is understood Symbion baulked at the A$425
million asking price for SDS Pathology, offering A$300 million.
In a statement to the Australian Stock Exchange last night,
Primary said such a sale would have led to a reduction in the
synergies management had built. SDS has an 11 per cent market
share in the New South Wales pathology sector, and 4.5 per cent
nationally. Page 58.

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Australia's largest gaming group, Tabcorp Holdings ,
has not ruled out making an offer for New Zealand's Sky City
Entertainment , whose shares soared almost three per cent
yesterday on speculation of a bid. While Tabcorp was focused on
improving its existing business, chief executive, Matthew
Slatter, said 'we scan all the markets' for acquisitions. Sky
City owns five casinos, including its flagship Auckland property,
as well as operations in Adelaide and Darwin. It is worth an
estimated A$1.9 billion. Page 59.

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

Leading financial advisory, Professional Investment Services,
is being sued for placing its clients in failed West Australian
property developer, Westpoint. Law firm, Slater & Gordon, is
taking action on behalf of 22 investors who lost A$100,000 each
when Westpoint collapsed in February. 'We believe there was
misleading conduct by the advisers because they at no time
appropriately disclosed that Westpoint was a high-risk product,'
said Slater & Gordon director, Ken Fowlie. PIS said the group
would 'vigorously defend' the action. Page 19.

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Mayne Pharma shares soared 35 per cent on resuming
from a trading halt yesterday, as the board recommended a A$2.63
billion takeover bid from United States healthcare group,
Hospira. Opening at A$3.10, Mayne's shareprice reached an
intra-day high of A$4.26 before closing at A$4.16. Chairman,
Peter Willcox, said a takeover by Hospira was subject to no
superior offer being received. Mayne, which makes generic cancer
treatments, recorded a A$31.34 million loss in 2005-06. It moved
to Britain last year. Page 19.

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Macquarie Infrastructure Group chief executive,
Stephen Allen, says 'less salubrious' Wall Street investment
banks may try to incite resentment against foreign operators as
they compete for United States toll-road opportunities. Mr Allen
told an Australian investment conference in New York yesterday
that xenophobia was 'alive and well in the US today.' In a A$5.1
billion joint venture with Spain's Cintra, MIG holds a 75-year
lease on an Indiana toll-road in the state's north. It collects
all toll revenues on the route. Page 21.

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SvitzerWijsmuller has effectively increased its
offer for Australian tugboat operator, Adsteam Marine ,
to A$704 million by allowing shareholders to keep an interim cash
dividend of 4.1 cents. The Danish shipping group launched a
A$693 million friendly takeover for Adsteam at A$2.54 a share in
July. With the dividend payout, the offer is now worth A$2.58 a
share. The takeover is yet to be approved by British regulators,
with the Office of Fair Trading concerned about a potential loss
of competition at local ports. Page 21.

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

Business information provider, Baycorp Advantage ,
will re-launch itself as 'Veda Advantage' early next year. The
new name, derived from a Sanskrit word meaning knowledge, follows
the sale of Baycorp's debt collection agency to Trans-Tasman
Collections in June. The cost of changing the brand is estimated
at A$2-$3 million, with A$1 million already put aside from the
proceeds of the Baycorp sale. Page 21.

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Amcor has denied knowledge of an impending A$6.6
billion offer for the packaging group, after the Australian Stock
Exchange queried the company over the issue yesterday. Amcor
shares surged A31 cents in early trade on speculation of a
takeover, before the company declared it had not received a
'proposal indicating an intention to make a takeover bid.'
However, sources reveal New Zealand billionaire, Graeme Hart,
has indicated his interest in the Melbourne company. Page 21.

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Three Australian football codes have joined a push by
pay-television (pay-TV) operators to reform the Federal
Government's anti-siphoning regime, which gives free-to-air
networks the first right to sporting events. The chief
executives of the Australian Football League, National Rugby
League and Football Federation Australia would rather negotiate
directly with pay-TV for broadcast rights. Lobby group, Free TV
Australia, which represents Channels Seven , Nine
and Ten , criticised the move as a 'gang tackle'
on Australian viewers. Page 21.

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News Ltd yesterday refuted Seven Network's
claim that it conspired to 'kill' pay-television arm, C7, through
winning the Australian Football League (AFL) broadcasting rights.
News's barrister, Noel Hutley, SC, told the Federal Court there
had been no stifling of competition when the AFL awarded the
2002-06 rights to a News Ltd consortium. Mr Hutley said Seven's
assumption the AFL would treat C7 as 'a protected species' had
led to the channel's demise. Page 21.

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THE AGE (www.theage.com.au)

United Kingdom-based consultancy, Blue Marlin Brand Design,
has poached an executive from its main rival in Australia,
Landor, to head its Melbourne business. Dominic Walsh, 37,
assumed the role of Melbourne general manager this week.
'There's a huge continued demand for somebody who is very strong
as a...strategic leader, and that's why we've put Dom in to play
that role,' said Australian managing director, Brian Mansfield.
Blue Marlin opened its first Australian branch in Melbourne in
1999. Page B2.

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Feltex Carpets is on the brink of collapse after
negotiations with its banker, ANZ Banking Group , over a
'fully funded' rescue offer broke down. New Zealand's Turner
brothers, owners of the Sleepyhead furniture group, have been
locked in talks with ANZ for almost two weeks since making the
offer. However, it is understood the deal only covers half of
ANZ's outstanding debt of A$118 million. In a press release
yesterday, the Turners claimed the delay 'is leading to the
gradual demise of Feltex.' Page B3.

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A landmark ruling by the Victorian Civil and Administrative
Tribunal has given BP Australia permission to target older
workers for special recruitment. BP Australia subsidiary, Elite
Solutions, applied for the exemptions from the Equal Opportunity
Act to meet a skills shortage and reduce a 17 per cent workforce
turnover rate. Elite runs a call centre and provides BP
Australia with accounting and financial services. The exemptions
will be in place for two years. Page B3.

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Economists have warned a recent drop in oil prices is only
temporary, attributing the fall to 'seasonal weakness' at the
year's end. Despite current prices of US$60 a barrel, Bell
Commodities researcher, Peter Quinton, predicts an average price
of US$68 for the full year. Mr Quinton highlighted a lack of
global spending on exploration and refinery upgrades, saying this
would elevate demand for oil until the end of the decade. Page
B3.
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has 112 Australian sources including the Australian Financial
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