PRESS DIGEST-Australian Business News - March 16

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)

-- Australasian casino operator Sky City Entertainment (SKC.NZ) has signalled it may purchase some of the smaller casinos owned by lotteries operator Tabcorp Holdings (TAH.AX), according to Sky City managing director Nigel Morrison. 'Tabcorp has some interesting assets and probably something could happen with Tabcorp and we would certainly be interested in looking at one or two if its smaller casinos,' Mr Morrison told investors on Friday. Analysts believe Sky City and Tabcorp had previously held talks about a possible merger. Page 12. -- Integrated media company Seven Media Group (SEV.AX) will cut costs in response to the downturn in advertising markets over the past year, according to its corporate development director Simon Francis. 'The economic climate isn't strong and we're working on managing our business and ensuring we build on our leadership,' Mr Francis said Friday. According to Media executives yesterday, Seven was in a stronger position than its rivals Ten Network (TEN.AX) and PBL Media, the owner of the east-coast Nine Network television stations and ACP Magazines. Page 13. -- Renewable energy electricity producer B&B Wind BBW.AX may bundle its wind farms and development sites into separate assets, according to chief executive Miles George. Stressing the company has sufficient cash and no immediate need to raise capital, Mr Miles says the reorganisation of its asset ownership would only be necessary if debt markets remain frozen. 'We're hoping debt markets are more normal in 18 months, when we might want to make an investment,' Mr George said. Page 14. -- Drilling services provider Boart Longyear (BLY.AX) says it is getting positive responses from its banking syndicate about refinancing or extending the repayment date on its debt due in April 2010. Chief financial officer Joe Ragan says the company had spoken to the majority of its 16 bankers about its US$585 million debt and has not received any negative responses. Due to its depressed share price, Boart is considered by analysts to be ripe for consolidation with either a merger partner in private equity or in the industry. Page 15.

THE AUSTRALIAN (www.theaustralian.news.com.au) --The Australia and New Zealand Banking Group (ANZ.AX) has announced a new regional strategy for its institutional division which will achieve a lasting turnaround, according to acting divisional chief Alex Thursby. Additional changes include a A$340 million investment program over the next four to five years, and the appointment of Shayne Elliott from Citigroup, as permanent head of the institutional division. ANZ has set the target of being the most profitable institutional banking business in the Asia-Pacific region. Page 21. -- The Foreign Investment Review board is expected today to take a routine 90-day extension in its evaluation of the proposed A$30 billion alliance between mining company Rio Tinto (RIO.AX) and Chinese resources company Chinalco. The board will make a recommendation to Federal Treasurer Wayne Swan, who has the final decision on the matter. Rio Tinto shareholders are then expected to meet mid-year to vote on the deal that would give Chinalco up to 18 percent share of the company. Page 21. --The shares in multimedia company APN News & Media (APN.AX) are expected to recover today following last Friday's announcement of a truce between the two largest shareholders of its parent company, Ireland's Independent News & Media (INME.I), according to analysts. In Ireland, the INM share price recovered 67 percent following the news that the O'Reilly family and Denis O'Brien had reached an agreement. Under the deal INM chief executive Tony O'Reilly will be replaced by his son Gavin, and the board will be reduced from 17 to 10. Page 21. -- Telecommunications company Telstra's (TEL.AX) chief executive Sol Trujillo's links to a United States (US) bank and one of Telstra's suppliers has been called into question. Analysts have queried why Mr Trujillo's board seat on US bank Promerica (PMRA.OB) had not been revealed to Telstra shareholders, despite a US$5 million deposit made to Promerica last year in the midst of the US sub-prime crisis. Mobile phone wholesaler Brightstar, which won an exclusive contract shortly after Mr Trujillo's appointment, made the deposit. Page 19.

THE SYDNEY MORNING HERALD (www.smh.com.au) --Queensland regional carrier SkyAirWorld collapsed last week after GE Capital Aviation Services repossessed all of its aircraft. Administrator Peter Lucas has been voluntarily appointed, and it is believed tens of millions of dollars are owed to more than 100 creditors of the airline. Following the closure two months ago of another Queensland carrier, MacAir, links to towns in regional and rural Australia have now been placed in doubt because remaining airlines do not believe they make economic sense . Page 1. -- A landmark trial relating to the collapse of Victorian-based broker Opes Prime has the potential to prompt fresh claims against brokers, according to industry analysts. Commencing in the Federal Court in Perth today, millionaire car dealer Bruce Drummond is pursuing stockbroker Euroz over allegations Mr Drummond was inadequately advised about the risks of investing with Opes. Investors lost millions when Opes collapsed in March last year, and law firms believe if Mr Drummond is successful some investors will take action against other brokers. Page 20. -- Major airline Qantas Airways (QAN.AX) may be required to make a multimillion-dollar contribution to its defined superannuation scheme, funds that would come direct from profit and loss according to industry sources. Qantas Super's chief executive Janet Torney refused to comment on whether the airline will need to fund any contribution from its earnings. 'It is something we are cognisant of to make sure that we have the appropriate funding from the company. We continue to manage it with their ongoing support,' Ms Torney said on Friday. Page 21.

THE AGE (www.theage.com.au) -- National Australia Bank (NAB.AX), one of Australia's big four banks, is set to reduce staff as part of the overhaul of its lending division, according to analysts. The overhaul was revealed by chief executive Cameron Clyne last week, and while Mr Clyne stressed that NAB had no targets for job losses, insiders say the rationalisation of its two risk assessment departments into one operation could result in a reduction of risk and credit officers. Page B1. -- LED Technologies, a Melbourne based producer of high-tech truck lights, has successfully won a court case to ban the sale of overseas copies of its products. Seen as a key win for Australia's manufacturing sector, LED owner Tony Ottobre sued importers and distributors under new design laws for selling copycat products of light emitting diode rear lights for trucks and trailers. Mr Ottobre said on Friday that many in the industry believed that if a new product varied by at least 10 percent, it was permissible to copy someone else's product. Page B1. -- The Australian Securities and Investments Commission (ASIC) is to decide today on whether to wind up failed financial advisor Storm Financial. ASIC has been waiting for the administrators of Storm to release their report, which is expected today. 'ASIC will not be making any further comment about the matter until it receives a copy of the administrator's report to creditors,' the corporate regulator said on Friday. Creditors could make the decision themselves later in the week to put Storm into liquidation. Page B3. -- Casino and gaming operator Crown Limited (CWN.AX) may be looking for further acquisitions during the market downturn says Credit Suisse analyst Larry Gandler. Not proceeding with the acquisition of three United States casinos from the Cannery casino group has saved Crown around US$1.4 billion Mr Gandler said. The Australian market may be most attractive for expansion, and although the acquisition of wagering and gaming company Tabcorp Holdings may be too large for Crown to fund solely, it could seek a partner says Gandler. Page B3.