PRESS DIGEST-Australian Business News - Nov 30

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)

Yesterday, telecommunications company PIPE Networks major investors expressed concern over a A$373 million takeover proposal from rival SP Telemedia (SPT) SOT.AX. The shareholders say that a recent jump in SPTs stocks shows its A$6.30 per share offer in fact undervalued PIPE and particularly its new undersea cable between Sydney and Guam. Selling now is a little bit like pulling a flower out of the ground just as the shoot comes out, said Fisher Funds Managements Frank Fisher, who holds a 7 percent stake in PIPE. Page 15.

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Television networks Seven SEV.AX and Ten (TEN.AX) have finalised advertising rates and deals for next year, leaving Nine Network trailing behind. Nine chief executive David Gyngell and Peter Wiltshire, head of sales and marketing, have commenced talks with media buyers, but no deals were made. Ten chief executive Grant Blackey yesterday said it has agreements with Mitchell Communication Group, Australian Media Exchange and Universal McCann. Sevens chief of sales, James Warburton, said 2010 deals will close by Christmas. Page 15.

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Airport operator MAp Airports MAP.AX has indicated that it might contemplate supporting an acquisition of Qantas Terminal 3 (T3) at Sydney Airport, if the asset was up for sale. MAp chief executive Kerrie Mather yesterday said that if there were the right parameters, T3 would be considered. However, a Qantas spokesman said the carrier had no plans to sell T3. Macquarie analyst Ian Myles said that airports attempt to generate revenue at terminals, while airlines focus on helping people arrive at the terminal on time. Page 15.

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Department store Myers (MYR.AX) sales are outperforming rival competitors, but Myer stocks are still trailing behind. In the September quarter, Myer shares were 11.5 percent down from its A$4.10 listing price, while David Jones (DJs) observed a 8.4 percent rise. The S&P/ASX 200 retail sector index was up 8.8 percent, with retailer JB Hi-fi stocks enjoying a 13.6 percent increase. DJs is a proven business and Myerisnt, MF Global hedge fund and institutional sales leader Nick Burmester said yesterday. Page 16.

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

Hardware retailer Mitre 10 has attracted two potential takeover bids that may put pressure on Woolworths plans to break into the hardware sector. On Friday, listed grocery wholesaler Metcash and an unnamed private equity group made bids for the hardware retailer, it is understood that both parties were in talk with Mitre 10 for several months. Metcash has since unveiled its A$55 million bid to acquire half of Mitre 10. Details on a second bid will disclosed today. Page 25.

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Listed financial company Reco will test the market with a A$15 million capital raising that sees the company reinvent itself as a coal explorer. The company recently released a 122-page prospectus, after receiving shareholder approval for a reverse takeover of Singaporean mining company Blackcairn Resources. The company has appointed Lodge Partners Troy Graham to advise on the deal. Reco will rebrand itself as Blackcrest Resources, after operating as insolvency and administration practise. Page 25.

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Miner Territory Resources TTY.AX hopes to trounce a disappointing year and push forward a new acquisition plan, with backing from major shareholder Noble Resources. At todays annual meeting, chairman Andrew Simpson will reveal acquisition plans to shareholders. In October, Noble rescued the company from its financial woes by assuming responsibility for Territorys debt. The company will now focus on its future growth plans and financial restructure ambitions. Page 26.

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Falling gold production in the United States and South Africa has seen Australia become the worlds number two producer behind China. According to a quarterly survey from industry consultancy Surbiton Associates, Australia produced 112 tonnes of gold in the first six months of 2009. By comparison, China produced 147 tonnes, the US 105 tonnes and South Africa 103 tonnes in the same period. Australias gold production is currently worth around A$7.5 billion annually, which equates to the export value of wool, wine and diary products combined. Page 26.

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

Market shareholders are likely to be thankful that ammonia producer Burrup Holdings failed after two attempts to list last year. Burrup reported a A$190.5 million net loss before tax for the year, and the Varanus Island gas explosion in mid-2009 led to Burrups ammonia plant being temporarily shutdown. The float promoter at the time, UBS, had proposed a market valuation of up to A$3 billion underpinned by a forecasted A$187.5 million net profit. Page 1.

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Directors from property companies Goodman Group (GMG.AX) and Valad Property VPG.AX will face shareholders at todays final annual general meetings for the year. Both companies were scrutinised by investors in recent weeks over their remuneration reports and asset sales. Proposed resolutions at Goodman included the re-election of chairman Ian Ferrier and director Jim Sloman. Advisory firm RiskMetrics recently issued a report asking investors to vote against Mr Ferriers reappointment. Page 3.

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Mining company OZ Minerals (OZL.AX) will hold a strategic briefing today, with chief executive Terry Burgess expected to outline future plans. OZ has A$800 million of cash, no debt apart from US$105 million of convertible notes, and one producing asset: the Prominent Hill copper-gold mine in South Australia. The companys success shows there is room for small to mid-tier miners; BHP Billiton seems to be interested in operations that produce at least US$500 million of earnings before interest, taxes, depreciation and amortisation. Page 5.

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National Rugby League (NRL) club chairmen and chief executives will meet today for a season review. Expansion is unlikely to be on the agenda, despite moves from three other football codes to increase teams. NRL chief executive David Gallop yesterday defended his decision not to expand teams, saying his focus was quality, not quantity. The NRLs disbursement to clubs is now A$750,000 short of the A$4.1 million annual salary cap, while News Limiteds Brisbane Broncos has a A$26 million turnover. Page 6

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THE AGE (www.theage.com.au)

Australian investors are expected to switch to defensive stocks, as Dubais debt crisis continues to burden offshore shareholders. More details regarding the crisis are expected to be revealed this week, when Emirates chairman Shiekh Ahmed Bin Saeed Al-Maktoum arrives in Sydney to open the airlines Blue Mountains-based resort. The Australian sharemarket recorded one of its biggest falls in five months on Friday a 3 percent decline yet some investors believe the sell-off was an overreaction. Page B1.

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Technology is making a big impact on the retail industry, particularly those specialised in fashion. According to Sportsgirl chief executive Elle Roseby, a website is not enough to have the required online presence to engage with ones client base, and must be extended through social networks and blogs. The site has made things easier for her (client); it takes the guesswork out and she can follow the trends through the opinions of others posting on the forum, Ms Roseby said yesterday. Page B1.

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Nearly one month before the anticipated Henry review report into Australias taxation system is due to be released, the review has indicated its support for a national road congestion tax. Infrastructure Partnership Australias (IPA) 75-page report recommends state governments take action against congestion by using a variable tolling model. The IPA acknowledged that implementing a congestion tax is complex and could take years to complete. Page B1.

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Canadian Pension Plan Investment Board (CPPIB) chief executive David Denison yesterday said the unsolicited bid for tollroad operator Transurban (TCL.AX) met its target investment returns, as it sits comfortably below the existing offer. A few weeks ago, CPPIB and the Ontario Teachers Pension Plan jointly made a unsolicited A$6.8 billion bid for Transurban, whose operations include Melbournes CityLink and Sydneys Westlink M7. Transurban declined the offer, describing it as incomplete. Page B3.

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