PRESS DIGEST-Australian Business News - Jan 9
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)
Telstra (TLS.AX) chief executive Sol Trujillo yesterday told a media and telecommunications conference in the United States that the company risks losing up to A$2 billion in revenue if the tender for the Federal Government's national broadband network goes to another group. However, Mr Trujillo said such losses would be over an extended period of time, and assured investors that there would be no change to Telstra's financial guidance due to its exclusion from the tender process. Page 37.
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The Tasmanian Government yesterday announced it intends to sell its wagering business TOTE Tasmania by the end of June this year, with an expected price of A$300 million or more. Tatts Group and Tabcorp are considered the most likely bidders, but observers said the business could also attract interest from Betfair and a number of overseas companies. Australia's wagering industry is currently dominated by Tatts and Tabcorp, and the sale of TOTE Tasmania is likely to put further pressure on the three remaining state-owned totes. Page 37.
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Falling global demand for steelmaking material, which has already led to a downturn in Western Australia's iron ore sector, is now affecting Queensland's coking coal industry. Rio Tinto (RIO.AX) yesterday told staff at its Kestrel mine in Queensland that production would be cut by 15 percent from this month, with the reduction to remain in place until coal sales from the mine improve. Peabody Energy (BTU.AX) also plans to cut production from its Queensland mines, while Xstrata is expected to soon close its Oaky No. 1 coalmine. Page 38.
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GrainCorp <GNC.AX. says it has received about 7.4 million tonnes of grain since the start of October, putting the grain handler on track to achieve its target of between 7.5 million and 10 million tonnes of grain for the 2009 financial year. Last year, total deliveries to the company were only 6.5 million tonnes. The figures are seen by analysts as a positive sign that GrainCorp will be able to become profitable this year, after the company made a loss of almost A$20 million in 2007-08. Page 39.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The board of financial services company Babcock & Brown (BNB.AX) (B&B) was last night considering an initial response from its banking syndicate to the business plan proposed by the troubled group as it seeks to avoid collapse. B&B is believed to have proposed a debt-for-equity swap with its lenders that would give the company access to cash and reduce its debt. The banking syndicate's full response, as well as B&B's business plan, is expected to be publicly released on Monday. Page 15.
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Litigation funder IMF has warned the liquidator of Opes Prime that it does not have the right to reach a settlement with the collapsed firm's financiers, Australia and New Zealand Banking Group (ANZ) and Merrill Lynch, on behalf of IMF's clients. IMF, which is acting on behalf of around 85 Opes creditors, has questioned how such a settlement could be reached when 'no investors or their representatives have a seat at the mediation table.' ANZ is also facing a class action from investors in the United States over the collapse of Opes Prime. Page 15.
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Shareholders in zinc miner Perilya (PEM.AX) are to be asked to decide whether to agree to a proposal from Chinese steelmaker Shenzen Zhongjin to inject A$45.5 million in cash in return for a 50.1 percent stake on February 5. If approved, the proposal would end a rival takeover bid from CBH Resources (CBH.AX). However, CBH says the February 5 meeting should be delayed until both Perilya and CBH have reported their results for the December half-year, claiming that shareholders require the information to make an informed decision. Page 16. Continued...
