PRESS DIGEST-Australian Business News - June 23
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)
Former Territory Resources board member Michael Kiernan will require approval from his former board members in order to acquire the gold assets of producer Monarch Gold from administration. Mr Kiernan's new venture Stirling Resources (SRE.AX) was placed into a trading halt yesterday pending an announcement over his recapitalisation plans for Monarch. In spite of discussions with Monarch Gold's administrators, Mr Kiernan said 'the people who are calling the shots are Territory Resources because they are the major shareholders in Monarch.' Page 20.
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Media analysts believe the Ten Network (TEN.AX) will post weak third-quarter results in spite of the televisions group's strong ratings since early May. Deutsche Bank analyst Andrew Anagnostellis has predicted a 52.3 percent decline in earnings on a 12 percent decline in revenue. 'Ten's ratings momentum has improved markedly following the launch of new programs...however, [it] will find it hard to monetise the ratings gains in the short term,' Mr Anagnostellis said. Page 20.
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Hastie Group (HST.AX) is seeking contracts and acquisitions following the building and maintenance service provider's A$77 million capital raising last month. According to managing director David Harris, the company is eager to add plumbing and fire services alongside its air-conditioning and electrical maintenance services which generated sales of A$923 million during the first half to December. 'Our main focus is organic growth but we are pursuing opportunities as they present themselves,' Mr Harris said yesterday. Page 45.
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Newly merged telecommunications company Vodafone Hutchison Australia (VHA) (HTA.AX) is seeking a new 10,000 square metre head office in Sydney. The search comes as staff at both Hutchison's 3 division and Vodafone were asked to reapply for their positions as the company seeks significant cost savings. Recently, VHA chief executive Nigel Dews said customer-facing staff would not be reduced, although the newly merged top team would be relocated to the new location. Page 45.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Brian McCarthy, the chief executive of Fairfax Media (FXJ.AX), has offloaded 350,000 shares, or 13 percent of his stake, to raise A$467,250. A spokesperson yesterday said the sale, which has reduced his personal holding to 777,163 shares, was for the purpose of 'personal debt reduction'. Page 17.
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Explosives, consumer products and industrial chemicals group Orica (ORI.AX) has said it is still looking to demerge its consumer products division, although it is unlikely to occur within the next year. Yesterday, an Orica spokesperson said the company was 'doing a lot of prepatory work and getting that little bit closer to being ready...but at this stage it's really a 'wait and see' on the market.' Last November, Orica scuttled plans to spin off its consumer products division due to the problems in the financial markets. Page 19.
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Australian Stock Exchange-listed industrial property company Goodman Group (GMG.AX) has had its long-term, unsecured credit rating reduced from Baa2 to Baa3 by ratings agency Moody's Investor Services. The downgrade was prompted by the group's high gearing and weak business outlook, and will result in the group's interest bill will rising by A$2 million a year, Goodman said. During April, fellow ratings agency Standard & Poor's reduced Goodman's long-term rating from BBB-plus to BBB, citing a weakened financial profile. Page 19. Continued...
