DIGEST-AUSTRALIA-BUSINESS =2 SYDNEY

Mon Jun 8, 2009 4:29pm EDT

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

Real estate agent Peter Taylor has been ordered by the New South Wales Supreme Court to pay 13 percent interest on the sale price of a A$3.3 million home in Sydney's Bellevue Hill he was purchasing. Mr Taylor had started the transaction in September last year before finding that he was unable to meet new, tougher lending requirements by his bank and could not proceed with the purchase. The interest charge covers the period between when he defaulted on the purchase contract and was finally able to proceed following the sale of his own home. Page 18.

The court case alleging Merrill Lynch executives participated in insider trading activity will commence today in Melbourne's High Court. Former Merrill Lynch client David Waterhouse, of the famous Sydney racing family, says that Merrill bank executives short sold blue-chip company shares last year while aware that the New York head office was about to report "awful' news concerning its sub-prime mortgage exposure. Page 18.

Western Australian (WA) Premier Colin Barnett has reinforced his opposition to the proposed joint-venture between mining companies BHP Billiton and Rio Tinto. Mr Barnett reminded the two companies that Pilbara iron belonged to the people of WA and he promised to extract a "new deal' and seek assurances on jobs, tax and the sharing of infrastructure. "The days of selling iron ore at basically half price to the two big companies, as far as I'm concerned, are finished,' Mr Barnett said yesterday. Page 19.

Brewer Lion Nathan LNN.AX will end its 25-year bid to build a market for its XXXX beer in Britain having conceded that the brand is not attractive there. British customers have been notified by the company that it will not renew its licensing agreement with distributor InBev when it expires on June 30. Lion Nathan spokesman James Tait said last week that "challenging market conditions' had dictated that there was insufficient profit "to justify continued distribution of the brand.' Page 19.

THE AGE (www.theage.com.au) Mining company Rio Tinto has been described as behaving like a "dishonourable woman' by Chinese news agency Xinhua, following Rio's decision to abandon its US$19.5 billion deal with Chinese steelmaker Chinalco in favour of a joint venture with rival BHP Billiton. Xinhua says that Chinese companies "should learn a lesson' from Rio's corporate plays and include more precautions in their dealings with foreign companies, which are motivated purely by "eternal profit.' Page B1.

The recent re-election of a Indian Prime Minister Manmohan Singh has improved Insurance Australia Group's (IAG.AX) (IAG) chances of increasing its 26 percent holding in a State Bank of India joint venture, according to political commentators. Mr Singh is expected to push for a relaxation of foreign ownership laws, allowing IAG to raise its stake in the A$170 million joint venture to 49 percent. The insurance joint venture is expected to become one of IAG's biggest overseas operations. Page B3.

Australia's liquid natural gas (LNG) reserves leave it well placed to profit from emerging markets looking for less-polluting energy supplies, according to global oil company Shell's outgoing chief executive. Jeroen van der Veer says that there is a "mismatch [between] where you find the gas and the markets,' which could benefit Australia. However, Mr van der Veer's comments run counter to many analysts who are concerned of an oversupply. Page B4.

The president of the Australian Council of Trade Unions (ACTU), Sharon Burrow, has stated that transforming social protection and social insurance is now "at the top of the union agenda.' Ms Burrow made the announcement last Tuesday at the council's congress, and the move is seen as a departure from the traditional focus of fair wages and conditions for those in work. According to analysts, this new focus to alleviating the hardship of those without work is a more akin to workers organisations in Europe. Page B6.