PRESS DIGEST-Australian Business News - Jan 16

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)

Canadian media conglomerate Canwest CGSa.TO has signalled it may have to sell all or part of its 56.6 percent holding in struggling Australian television company Ten Network (TEN.AX). Canwest made the admission yesterday, following a slump in its share price prompted by revelations the media company may be in danger of breaching some of its banking covenants related to a A$364 million credit facility. Canwest last attempted a sale of its stake in Ten in 2007, asking A$3.10-a-share, compared with yesterday's closing price of A$1.04. Page 45.

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Shareholders in manganese miner OM Holdings (OMH.AX) yesterday approved a move to amend its constitution to adopt takeover protection provisions. The Singapore-based miner is listed on the Australian Securities Exchange but domiciled in Bermuda, making it ineligible for Australian takeover protection laws. The constitutional amendment was proposed following revelations that rival company Consolidated Minerals had purchased an 11 percent stake in the OM Holdings last year. Page 45.

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Full-year dividend forecasts for West Australian conglomerate Wesfarmers (WES.AX) have been slashed, following the company's profit downgrade yesterday. Analysts' predictions for the dividend range from A$1.70-a-share down to A$1-a-share, compared with the previous dividend guidance of A$2-a-share. Wesfarmers has warned that its interim profit could be 10 percent below expectations. 'It makes sense to cut the dividend and repay debt,' said Deutsche Bank analyst Kristan Walker. Page 45.

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The decision by British gas company BG Group (BG.L) to scrap a proposed A$750 million power plant in the Hunter Valley region has hampered the New South Wales Government's plans to reduce the state's dependence on coal-fired power generation. BG inherited the planned 400 megawatt to 600 megawatt gas-fired power station, which was expected to supply electricity for up to 500,000 homes, from its recent A$5 billion takeover of Queensland Gas Co. Page 48.

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

BHP Billiton (BHP.AX) (BLT.L) and Japanese group Pan Pacific Copper made an agreement on Wednesday under which BHP agreed to pay higher Japanese smelter charges to process copper from its Escondida project in Chile.

The higher fee means that the BHP's copper prices have been effectively lowered. Pan Pacific, which is the biggest Japanese copper refinery, said yesterday that it had won increases in annual treatment and refining charges of 'about 70 percent' for copper from Escondida, the world's largest copper project. Page 16.

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Shopping centre owner Westfield Group (WDC.AX) was issued with a query from the Australian Securities Exchange yesterday following a 12 percent plunge in its share price. The group's response to the query was that it was not aware of any reason behind the share price's sharp fall since Tuesday. Westfield, which has 119 shopping centres worth A$60 billion across the United States, Britain and Australasia, will release its full-year results next month. Page 17.

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