PRESS DIGEST-Australian Business News - Oct 7

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)

The Australian subsidiary of United States food group H J Heinz Company (HNZ.N) has made a A$288 million takeover offer for troubled fruit-and-vegetable processor Golden Circle. "We're buying it because of its fantastic brand," Heinz Australia managing director Peter Widdows said yesterday. The A$1.65-a-share cash bid has been backed by the target's 35 percent owner, Anchorage Capital, but will need the approval of the 800 grower shareholders who account for 60 percent of Golden Circle. Page 17.

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Representatives of major global iron ore exporters BHP Billiton (BHP.AX), Rio Tinto (RIO.AX) and Brazil's Vale (VALE5.SA) will not be present at a key conference organised by the China Iron and Steel Association (CISA) ahead of important price negotiations. CISA, China's peak steel industry body, said yesterday the big, established miners had not been invited as the forthcoming conference would focus on new miners. Observers said the snub highlighted the shift in bargaining power away from the big miners to the Chinese steelmakers as iron ore prices soften. Page 17.

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Oil and gas group Santos (STO.AX) has completed a A$300 million share buyback funded with the proceeds of the US$2 billion (A$2.6 billion) sale of coal-seam gas assets to Malaysia's Petronas earlier this year. Santos chief financial officer Peter Wasow said yesterday the buyback, carried out at A$16.23 per share, represented 3.1 percent of the South Australian company's issued capital. Analysts predicted Santos would see its earnings per share for calendar 2008 rise almost threefold to A$2.59, up from A89.2 cents a year earlier. Page 17.

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Renewable energy company CBD Energy (CBD.AX) is seeking to raise A$65 million through a secondary listing on the Toronto Stock Exchange. CBD Energy chairman Mark Vaile, a former deputy prime minister, said on Friday that CBD Energy would proceed with its plans "over the course of the next three months" despite the uncertain economic situation in North America. CBD Energy needs funding for its A$300 million in joint venture projects that are already in progress, including a project in partnership with Hydro Tasmania. Page 18.

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THE AUSTRALIAN

A report released yesterday by property firm Jones Lang LaSalle shows the global credit crisis forced a decline in the number of transactions by Australian real estate investment trusts (A-REITs) in the first half of 2008. The report, Global Real Estate Capital, says pressure to reduce gearing meant A-REITs were unable to buy property and become active sellers. "A number of highly geared A-REITs including Centro, MFS and Allco have experienced financing difficulties," the report says. Page 19.

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The head of strategy implementation at Centro Properties Group (CNP.AX) will step down from his position at the end of the month. Ross Johnston was brought in during March on an interim contract to reduce costs and improve financial reporting procedures and policies at the troubled shopping centre owner. According to a statement issued by Centro yesterday, "these initiatives will continue under the direction of senior Centro staff." It is understood Mr Johnston will be taking a chief executive role at a private equity-backed aged-care group. P19.

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Call centre operator UCMS has secured a three-year, A$9 million contract to provide services to a major Australian financial institution. The services will consist of contacting customers who have overdue balances on unsecured consumer-lending products. But UCMS said yesterday it has lost its sales support contract with Telstra. The sales support work for the telecommunications company will begin to wind down in mid-November, with completion expected during January 2009. P19.