PRESS DIGEST-Australian Business News - June 1

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)

--A consortium bid involving the Newsagents Association of New South Wales (NSW) and Australian Capital Territory (NANA) has emerged as a potential buyer for the NSW Lotteries business being sold by the State Government. NANA president Stan Cousins said yesterday that lotteries products bring "a lot of foot traffic" and are "very important to the bottom-line" for newsagents. Around 80 percent of NSW Lottery sales are made through newsagents. Page 12.

--The Australian Competition and Consumer Commission has approved the merger of Australia's third and fourth largest mobile carriers, Vodafone (VOD.L) and Hutchison Telecoms (HTA.AX). The regulatory approval was obtained on Friday and enables Nigel Dews, the new chief executive of the soon-to-be merged carrier, to commence the consolidation process. Mr Dews said yesterday that there were no immediate plans to close stores, but rather "the vast amount of synergies will be in the back office in the first few years." Page 12.

--The chairman of mining company Rio Tinto (RIO.L)(RIO.AX) has been forced to postpone his Sydney-based shareholders meetings planned for this week. Jan du Plessis was called back to London on the weekend due to an urgent family related issue, but a Rio spokeswoman said yesterday that the meetings would be attempted to be rescheduled in the future. Mr du Plessis has already met investors in London and Melbourne in a bid to sell the company's proposed sale of a minority stake to Chinese company Chinalco. Page 12.

--Brewer Foster's Group (FGL.AX) has continued to dismantle its multi-beverage sales person strategy that was found to be extremely unpopular with its customers. New managing director of the Carlton and United Breweries division, Alex Stevens, told analysts last Thursday that the number of specialist beer sales representatives has been increased by 25 percent, and South Australia, Western Australia and the Northern Territory has been restructured away from the multi-beverage approach. Victoria will commence its restructure this week Mr Stevens said. Page 12.

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

--The chief executive of oil and gas explorer Santos (STO.AX) has backed the Federal Government's proposed carbon pollution reduction scheme. David Knox said yesterday the legislation was needed if Australia is serious about confronting climate change and meeting its goal of cutting carbon emissions 60 percent by 2050. However, Mr Knox said natural gas needed a level playing field with other fuel sources and the development of long-term, low-emission technological improvements needed to be encouraged. Page 19.

--The former chairman of failed insurer HIH has agreed with the Australian Prudential Regulation Authority to remain out of the insurance industry until 2015. The announcement made last Friday means that Geoffrey Cohen will be aged 79 before he will be able to consider any return, essentially bringing an end to his insurance career. The HIH business failed in March 2001 owing A$5.2 billion, the largest corporate collapse in Australia's history. Page 20.

--The chief executive of investment manager Perpetual (PPT.AX) has called on the Federal Government to end the bank deposit guarantee scheme. David Deverall said the guarantee had resulted in a massive in-flow of capital to the Big Four banks at the expense of other finance sector companies, with investors in Perpetual's own mortgage funds pulling out A$150 million in the past two quarters alone. The guarantee on bank deposits of up to A$1 million was introduced last September by the Government in response to the global financial crisis. Page 21.

--Renewable energy group Pacific Hydro has won its bid for the A$560 million Chacayes hydro project in Chile, the company's largest financing deal-to-date. The project will be developed in partnership with Italian group Astaldi (AST.MI), and brings Pacific Hydro's total investment in the country to more than A$1.5 billion in the past four years. The development will create more than 4000 jobs and intends to sell generated carbon credits through the United Nations Clean Development Mechanism. Page 25.

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

--Dozens of branches of community bank Bendigo and Adelaide Bank (BEN.AX) have experienced growing losses over the past six months, primarily as a consequence of increased funding costs. "The past six or 12 months, as it has been for us and for most financial institutions here and around the world, has been a challenging period," said Russell Jenkins, Bendigo's general manager of retail and distribution. Mr Jenkins said the overwhelming majority of the bank's 234 branches remain profitable. Page 17.

--Shareholders of embattled developer and real estate investor Goodman Group (GMG.AX) are expected to be asked later this month to approve a deal to reunite with Macquarie Bank (MQG.AX). If the Macquarie deal is approved A$330 million of capital will be raised. Regardless of the shareholders decision, market speculation has increased that the New Zealand based Goodman Property Trust, estimated to have a market value of A$554 million, will be sold. Page 18.

--Toll-road operator BrisConnections BCSCA.AX has issued a formal demand for payment to internet entrepreneur Nicholas Bolton relating to A$1.3 million of partly-paid shares. Mr Bolton recently led a shareholder revolt to wind-up BrisConnections ahead of the due date for payment of the second of three payment instalments. Mr Bolton's case will be handed to debt collectors and court action will follow unless Mr Bolton meets his instalment payment. Page 19.

--The consumer satisfaction rating of Australia's Big Four banks compared to their smaller rivals has narrowed to its lowest level since 1996, according Morgan research. The findings show a gap of just five percent between the Big Four and others, where the gap having been as high as 17 percent at other times over the past decade. The narrowing has been in part as a result of increasing satisfaction with the Big Four and decreasing satisfaction with smaller lenders. Page 19.