PRESS DIGEST-Australian Business News - Nov 17

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)

Shareholders in troubled investment company Babcock & Brown Infrastructure (BBI) BBI.AX yesterday voted to accept a A$1.8 billion recapitalisation proposal from Canada's Brookfield Asset Management. More than 80 percent of shareholders voted to approve the plan, however, many expressed frustration at their losses. BBI currently has A$9.2 billion of debt, and a market value of A$91 million. Page 18.

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Gas exploration company MEO Australia (MEO.AX) yesterday said it had secured a 'major international petroleum and energy company' as a partner for its Artemis project off the West Australian coast. MEO did not identify the company but said its partner is not currently involved in the Australian industry. The Artemis gas field is thought to contain up to 12 trillion cubic feet of natural gas, enough to support a processing plant by itself. Page 18.

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Rural services group Elders (ELD.AX) yesterday released results, revealing a loss of A$466.4 million over the past 15 months as the company was hit by A$414.7 million of one-off items. However, chief executive Malcolm Jackman says Elders remains on track to return a profit of A$55.7 million for the coming year, as previously forecast. Mr Jackman said the company would benefit from improving consumer and farmer confidence. Page 45.

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Fund manager Evy Hambro, of investment management firm BlackRock, yesterday told Australian investors that prospects for resource investments remain strong, driven by growth in China, India and other emerging economies. Mr Hambro said that despite the rally in mining stocks, 'shares are not expensive even on what we would argue are overly conservative commodity price forecasts.' Page 46.

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

Mining company Rio Tinto (RIO.AX)(RIO.L) is expected to gain around US$491 million this week from the sale of 30.6 million shares in United States thermal coal company Cloud Peak Energy. Rio will retain a 48 percent stake in Cloud, which is expected to list on the New York Stock Exchange this week. The sale will help Rio reduce its debt, which stands at around US$40 billion after the acquisition of Alcan in 2007. Page 21.

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Manufacturing and marketing company GUD Holdings' (GUD.AX) takeover offer for small appliances distributor Breville (BRG.AX) has been rejected unanimously. The offer of A$320 million for Breville was not sufficient, according to an independent expert and the company's board. 'Breville has significant strategic value to GUD and the potential synergies are very large. The board believes that GUD can pay significantly more for Breville,' said chairman John Schmoll. Page 21.

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Fertiliser and explosives manufacturer Incitec Pivot (IPL.AX) yesterday posted a 46 percent fall in full-year profit to A$347.8 million. The company reported a net loss of A$179.9 million for the year ended September 30. 'Trading conditions in 2009 were the toughest I've seen in my 20 years in the chemical industry, with unprecedented reductions in global fertiliser demand and the consequent volatility in global fertiliser prices,' said Chief Executive James Fazzino. Page 21.

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Steel maker OneSteel (OST.AX) told shareholders at its annual general meeting yesterday that it aims to lift production as demand starts to improve. Chief executive Geoff Plummer told investors that OneSteel expects to lift second-half output by 100,000 tonnes. 'To date we have seen a small but steady increase in demand across most products and geographies, and we have increased production levels in accordance with our full-year guidance at August,' Mr Plummer said. Page 24.

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

Tiger Airways Australia would not comment yesterday on the company's performance, after news that its parent company had posted a loss for the year to March. The Singapore Airlines-supported (SIAL.SI) Tiger Aviation is believed to have recorded a loss of around A$22 million for the period, after making a profit the previous year. Tiger Australia yesterday said it would be announcing its results soon. Page 3.

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Proposed changes to the use of poker machines in New South Wales would raise concerns about the viability of gaming-focused venues in the state, according to industry consultants. The Productivity Commission last month released draft recommendations for the sector, including lowering maximum bets on machines and shutting down machines at times. The Commission's proposals follow evidence that almost half of all machine revenues comes from 'problem gamblers'. Page 3.

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Wind farm operator Infigen Energy (IFN.AX), previously known as Babcock & Brown Wind Partners, says it is considering acquisitions of troubled renewable energy companies, 'but it has to be at the right price relative to our own portfolio.' The company had A$405 million of cash at the end of the financial year, and is currently selling wind farm assets in the United States valued at around A$1.3 billion. Page 4.

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Despite a A$2 million cut in remuneration, Australia and New Zealand Banking Group (ANZ.AX) Chief Executive Mike Smith is the nation's highest paid bank head. Mr Smith was paid A$10.9 million in cash, bonuses and shares, eclipsing the take home pay of National Australia Bank (NAB.AX) chief executive Cameron Clyne, whose financial package came in at A$5.2 million in cash and shares. The Australian Prudential Regulation Authority is considering ways to force banks to reduce short-term bonuses for executives. Page 5.

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THE AGE (www.theage.com.au)

National Australia Bank will challenge the Australian Taxation Office (ATO) in the Federal Court over deductions between 2000 and 2003 which saved the bank almost half a billion dollars. The tax bill is comprised of A$309 million in primary tax and penalties, and A$170 million in interest. The ATO issued the six amended assessments to the bank between May 2005 and December last year. Page 1.

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Centro Retail Trust CRT.AX, which owns more than 400 shopping centres in Australia and the United States, will seek to change its present ownership structure. The trust is currently managed by Centro Properties (CNP.AX), but hopes to stand alone and may undertake an initial public offer. Chairman Peter Day yesterday said that while the trust had benefited from Centro's expertise, the current arrangements had presented some difficulties. Page 3.

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Perth company Perseus Mining (PRU.AX) yesterday saw its share price rise 15.6 percent after it released exploration results for its Tengrela gold project in the Ivory Coast. The miner saw its shares close at A$1.85, as analysts believe the project has the potential to produce between 350,000 and 400,000 ounces of gold annually within three years. Perseus has a current market capitalisation of A$590 million. Page 5.

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Property funds manager Becton (BEC.AX) is hoping to convince existing investors to give its unlisted funds more flexibility, as the manager tries to recover from the financial crisis. The increased flexibility would enable the funds to be more easily recapitalised or restructured and increase restructuring options, said Becton spokesman Matthew Chun. Analysts say Becton may float the unlisted funds, valued at around A$500 million. Page 11. --