PRESS DIGEST-Australian Business News - Sept 25

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Upmarket department store retailer David Jones DJI.AX yesterday reported full year results, with net profit for the year to July 26 growing 14.2 percent to A$156.5 million. The result included a 36 percent increase in net profit during the second half of the year, and chief executive Mark McInnes said 'we are well positioned to fully leverage the next upturn in the economic cycle.' Despite Mr McInnes positive comments, the company retained its profit guidance of between zero and 5 percent, until October and January quarter results are apparent. Page 43.

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Building materials company CSR (CSR.AX) yesterday announced that managing director Jerry Maycock will step down from his role once the planned demerger of its sugar business is complete. Mr Maycock will be replaced by executive Rob Sindel, who will head the building materials business. The spun-off sugar business, which is yet to be named, will be led by Ian Glasson. Mr Maycock said he had completed his primary task at the company, which was 'to get a dissolution of this conglomerate structure.' Page 43.

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Two Macquarie Airports MAP.AX investors will today apply for an injunction against a planned shareholder meeting next week. The meeting has been called to vote on a deal which would see the investment company pay A$345 million to buy-out its management rights from investment bank Macquarie Group (MQG.AX). The two investors, one of whom is linked to rival management team Global Airports, claim the explanatory memorandum from MAp regarding the deal with Macquarie Group was inadequate. Page 44.

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A letter which was to be sent to telecommunications company Telstra's (TLS.AX) chairwoman, Catherine Livingstone, remains unsent after concerns among a number institutional shareholders, which the letter was to represent, that it is too strongly worded. The letter, drafted by Anton Tagliaferro of fund manager Investors Mutual, criticises Telstra for not taking a stronger stand against the Federal Government's proposal to have the company's retail and wholesale arms separated. Page 44.

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

The Queensland Government will today appoint former investment banker Peter Young as chairman of the Queensland Investment Corporation (QIC). Mr Young is also the chairman of investment bank RBS Amro and Transfield Services Infrastructure Fund, and a board member of newspaper publisher Fairfax Media. QIC, which is wholly owned by the Queensland Government, is one of Australia's largest fund managers with A$65 billion in funds under management. Page 21.

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Canadian media company CanWest Global Communications yesterday sold its majority stake in Australian television broadcaster Ten Network (TEN.AX) via a share placement that raised A$680 million. The sale ends long-term speculation over the future ownership of Ten, with chief executive Nick Falloon yesterday saying 'it frees up the people who were having to deal with those issues over the last few years.' Local institutional investors were quick to take up the shares, following strong stock price growth in the local media sector in recent months. Page 21.

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Shares in gas exploration company Karoon Gas Australia (KAR.AX) fell almost 20 percent yesterday after the company reported disappointing results from its Kontiki-1 exploration well in the Browse Basin off Western Australia. Shares in the company had surged in April after positive results from the first exploration well that Karoon had drilled in the area, part of its joint venture with United States company ConocoPhillips. The joint venture says it will drill a further two exploration wells, with the option of drilling four more. Page 22.

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A A$700,000 bid to take control of the Multiplex Prime Property Fund MAFCA.AX by unitholder Nicholas Bolton failed last night when the Takeovers Panel ruled that the bid had occurred under unacceptable circumstances and 'created uncertainty for unitholders.' The panel said unitholders had not been given sufficient time or information about the takeover attempt. Mr Bolton is best known for attempting to break up toll-road operator BrisConnections earlier this year before accepting A$4.5 million to not vote for his own wind-up motion. Page 23.

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

Patrick Colmer, a director on the Foreign Investment Review Board, yesterday told the Australia-China Investment Forum in Sydney that attempts to acquire large stakes in Australian mining assets by state-owned Chinese companies are likely to be rejected. Mr Colmer said 'we are much more comfortable when we see investments which are below 50 percent for greenfields projects and 15 percent for major producers.' The board has received 90 proposals for Chinese investment in Australian companies over the past 18 months, worth A$34 billion. Page 1.

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Australia and New Zealand Banking Group (ANZ.AX) chief executive, Mike Smith, yesterday arrived in Hong Kong to speak at a conference being run by investment group CLSA Asia-Pacific Markets. Mr Smith, whose speech followed that by United States politician Sarah Palin, used a record 100-slide Powerpoint presentation in his address. Mr Smith will fly to Chongqing on China's mainland later this week and will open a new ANZ rural bank in Liangping on Monday. Page 2.

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Private health insurance fund Medibank Private yesterday indicated it is considering further acquisitions in the health-care management sector. Medibank purchased Australian Health Management in December for A$367 million, and merged with Health Services Australia in April, but managing director George Savvides says the fund remains 'open-minded' about further opportunities. The preventive and management sectors are becoming increasingly important to all health insurers as they seek to reduce overall costs. Page 3.

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The Australian Securities and Investments Commission has approved a request by the liquidators to kitchen appliance company Kleenmaid for cash from the regulator's assetless administration fund. The fund is intended to help liquidators investigate companies that have collapsed with few if any assets, and which could lead to criminal charges. Thousands of customers who had paid in full or in part for appliances lost their money when the company entered voluntary administration in April. Page 4.

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THE AGE (www.theage.com.au)

First home buyers have taken out larger loans over the past year due to government stimulus incentives and low interest rates, creating a level of risk for lenders. The Reserve Bank of Australia yesterday warned that super-sized loans were an 'unusual outcome' given that loans to first home buyers were normally smaller than loans to other home buyers. Analysts predict that the current scenario could add risk to lenders as first home buyers do not have a constant track record with savings and are more vulnerable to economic instability. B1.

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Discount supermarket chain Aldi yesterday demonstrated that it has become a force in the grocery sector, posting a net profit of A$72.6 million for the 2008 calendar year. The German chain opened its first supermarket in Australia in 2001, and has been profitable for the past three years. Aldi will now have a greater ability to compete with major supermarket chains such as Woolworths and Coles, after the Australian Competition and Consumer Commission this week moved to end restrictive leases in shopping centres. B1.

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Considered one of the world's most conservative advertising agencies, Grey Worldwide has hired controversial creative identity Jay Furby to run its Sydney venture JayGrey. The move will allow Grey Worldwide to go after corporate clients that deal with smaller and more independent advertising agencies. Mr Furby will return to advertising after a two year absence, but he has not been idle during this time, producing online campaigns for Sara Lee and its brands Radox, Ambi Pur and White King bleach. B2.

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Brickmaking company Brickworks (BKW.AX) yesterday posted a profit of A$114 million for the last financial year, as revenue jumped 7 percent to A$594 million. Shares in the company surged 20 percent earlier in the day to close A$1.79 higher at A$15.75. Chief executive Lindsay Partridge said Federal Government infrastructure spending on schools, social housing and defence would assist the industry with continual building activity until the next financial year. Page

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