PRESS DIGEST-Australian Business News - Sep 2

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)

Nufarm (NUF.AX) has blamed later than expected product sales for causing a A$170 million debt blowout and 7 percent fall in the pesticide maker's share price. The increased debt has effectively breached the company's covenants. Chairman Donald McGauchie yesterday defended the competence of chief executive Doug Rathbone, describing him as an "outstanding executive" experiencing a difficult period. Page 19.

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Locomotive engineering company Coote Industrial CXG.AX has reported a A$124.6 million loss for fiscal 2010. Chairman Dale Elphinstone yesterday blamed most of the loss on non-cash items. Coote suffered a A$5.7 million operating loss, and charges of A$118.9 million for impairments on assets and goodwill. The company also lost A$16.2 million from the sale of the South Spur Rail Services business. Page 19.

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Hoyts has rejected rumours that private equity owner Pacific Equity Partners had cancelled a proposed initial public offering of the cinema company. Executive chairman David Kirk yesterday said that Hoyts was open to all options, including a float, trade sale, or a secondary sale involving another private equity firm. "We're doing the work. We're talking to people," he added. Page 19.

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Coking coal prices yesterday mirrored a decline in iron ore prices by dropping 18 percent in the December quarter compared with the previous quarter to US$147 a tonne. Nicole Hollows, chief executive of coal mining company Macarthur Coal MCC.AX, last week said that Pulverized Coal Injection (PCI) prices might return to around US$180 per tonne during the September quarter. Patersons Securities analyst Andrew Harrington said that PCI pricing was more volatile than that of hard coking coal. Page 20.

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

David Liddy, chief executive of the Bank of Queensland (BOQ.AX), yesterday told a roundtable organised by 'the deal' magazine that there needs to be consolidation between regional banks. According to Mr Liddy, no regional bank has scale. The Bendigo and Adelaide Bank and BoQ later confirmed the meeting was a "fireside chat" about a potential A$5.5 billion merger between financial institutions. Page 23.

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Santos (STO.AX) is preparing for a A$2 billion rights issue. The oil and gas company is finalising deals to turn Korean state-owned KOGAS and China-based Sinopec into customers, investors and financiers of two proposed liquefied natural gas trains on Queensland's Curtis Island. Outgoing chief financial officer Peter Wasow last week said that Santos was confident that it would not be affected by capital availability "crunches." Page 23.

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The Australian Securities Exchange (ASX) has suspended the trading of shares in renewable energy company Advanced Energy Systems, haematology products business Arturus Capital, and China West International Holdings. The three companies yesterday missed their extended 10am reporting deadline. An ASX spokesperson said there were fewer suspensions this year compared to eight in 2009 and five in 2008. Page 24.

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Department of Foreign Affairs and Trade secretary Dennis Richardson yesterday told the African Down Under conference in Perth that Australian investment in the Africa's mining industry is predicted to be A$20 billion. He said Australian mining companies were involved in 500 projects in 40 African nations, adding the "growth of this investment has been impressive." Page 24.

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

Private investor Cyril Maloney is selling two commercial buildings in downtown Sydney's Martin Place for a suggested A$170 million. Mr Maloney, who owns the C.G. Maloney Group, had acquired the buildings in mid-2006 for around the same price. Exclusive selling agents on the deal include real estate company CB Richard Ellis' Rob Sewell, Richard Butler and Josh Cullen. Page 1.

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Downtown Sydney's banking and financial hub, Martin Place, is being transformed into a retail, entertainment and leisure area. The former Reserve Bank of Australia headquarters has closed, while Westpac Banking Corporation and the Commonwealth Bank of Australia are departing tenants of the location. Upmarket fashion brands Zegna and Giorgio Armani have entered the space. Rob Sewell of real estate company CB Richard Ellis yesterday said the area's appeal to luxury is clear. Page 3.

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Clean coal technology company Linc Energy (LNC.AX) has criticised the Queensland Government's continued environmental order ban on rival Cougar's pilot underground coal gasification plant. Managing director Peter Bond yesterday said that water testing at Cougar's plant had already cleared the rival of contaminating groundwater. "The shareholders in Cougar have a class action case against the Queensland regulator on the basis of the way it was so mismanaged," Mr Bond added. Page 4.

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Research from the Bank of International Settlements has found the Australian dollar contributed to 7.6 percent of global currency turnover this year - a 6.6 percent increase on 2007 levels. The dollar has already overtaken the Swiss franc to become the fifth most-traded currency internationally. Only the yen, euro, British pound and United States dollar were traded more. Page 4.

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THE AGE (www.theage.com.au)

Information technology services company ASG Group (ASZ.AX) has appointed Trevor O'Hoy as a non-executive director. Group chairman Ron Baxter yesterday said the former Foster's Group FGL.AX president had "wide-ranging personal networks and [a] significant understanding of commercial and capital markets." ASG is planning to exploit new growth opportunities and capitalise on recent takeovers. Page B2.

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The price of stocks in Jetset Travelworld (JET.AX) yesterday rose by 16.8 percent to A80 cents a share, following an Australian Competition and Consumer Commission (ACCC) decision to approve the travel company's proposed acquisition of suitor Stella Travel Services. ACCC chairman Graeme Samuel said the competition regulator had undertaken a thorough review of the transaction to ensure it would not negatively affect Australian travellers. Investors will consider the merger at a shareholder meeting on September 6. Page B2.