PRESS DIGEST-Australian Business News - Nov 17
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)
Shareholders in troubled investment company Babcock & Brown Infrastructure (BBI) BBI.AX yesterday voted to accept a A$1.8 billion recapitalisation proposal from Canada's Brookfield Asset Management. More than 80 percent of shareholders voted to approve the plan, however, many expressed frustration at their losses. BBI currently has A$9.2 billion of debt, and a market value of A$91 million. Page 18.
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Gas exploration company MEO Australia (MEO.AX) yesterday said it had secured a 'major international petroleum and energy company' as a partner for its Artemis project off the West Australian coast. MEO did not identify the company but said its partner is not currently involved in the Australian industry. The Artemis gas field is thought to contain up to 12 trillion cubic feet of natural gas, enough to support a processing plant by itself. Page 18.
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Rural services group Elders (ELD.AX) yesterday released results, revealing a loss of A$466.4 million over the past 15 months as the company was hit by A$414.7 million of one-off items. However, chief executive Malcolm Jackman says Elders remains on track to return a profit of A$55.7 million for the coming year, as previously forecast. Mr Jackman said the company would benefit from improving consumer and farmer confidence. Page 45.
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Fund manager Evy Hambro, of investment management firm BlackRock, yesterday told Australian investors that prospects for resource investments remain strong, driven by growth in China, India and other emerging economies. Mr Hambro said that despite the rally in mining stocks, 'shares are not expensive even on what we would argue are overly conservative commodity price forecasts.' Page 46.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Mining company Rio Tinto (RIO.AX)(RIO.L) is expected to gain around US$491 million this week from the sale of 30.6 million shares in United States thermal coal company Cloud Peak Energy. Rio will retain a 48 percent stake in Cloud, which is expected to list on the New York Stock Exchange this week. The sale will help Rio reduce its debt, which stands at around US$40 billion after the acquisition of Alcan in 2007. Page 21.
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Manufacturing and marketing company GUD Holdings' (GUD.AX) takeover offer for small appliances distributor Breville (BRG.AX) has been rejected unanimously. The offer of A$320 million for Breville was not sufficient, according to an independent expert and the company's board. 'Breville has significant strategic value to GUD and the potential synergies are very large. The board believes that GUD can pay significantly more for Breville,' said chairman John Schmoll. Page 21.
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Fertiliser and explosives manufacturer Incitec Pivot (IPL.AX) yesterday posted a 46 percent fall in full-year profit to A$347.8 million. The company reported a net loss of A$179.9 million for the year ended September 30. 'Trading conditions in 2009 were the toughest I've seen in my 20 years in the chemical industry, with unprecedented reductions in global fertiliser demand and the consequent volatility in global fertiliser prices,' said Chief Executive James Fazzino. Page 21. Continued...
