PRESS DIGEST-Australian Business News - March 19

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)

Mark Rowsthorn, the chief executive of transport infrastructure group Asciano (AIO.AX), has rejected investor criticism that the company's asset sale process, started in August, has taken too long and destroyed shareholder value. Mr Rowsthorn, who is also Asciano's largest shareholder with a stake of nearly 11 percent, yesterday said "the right result is more important than the time it takes." The company's share price has fallen 85 percent since the asset sale process was started seven months ago. Page 15.

--

Department store retailer David Jones (DJS.AX) yesterday revealed first-half results, with net profit rising by 2.4 percent to A$91.2 million, despite earnings from its stores falling by 3.5 percent. The fall in earnings was offset by cost savings and increased earnings from financial services. Chief executive Mark McInnes said sales have weakened further during the first seven weeks of the current half-year, but he was confident the retailer would be achieve between zero and 5 percent growth for the full-year. Page 15.

--

Telecommunications company Telstra (TLS.AX) >has warned that bidders for the Federal Government's national broadband network (NBN) cannot assume that Telstra will use the network. Telstra has said it should be allowed to build competing infrastructure to the NBN. However, analysts say that without assurances that Telstra will use the infrastructure, the project will struggle to attract funding. Communications Minister Stephen Conroy last week said the Government would use its regulatory powers to ensure the success of the project. Page 16.

--

Nicholas Bolton's Australian Style Investments, which owns 18.7 percent of toll-road operator BrisConnections, was questioned in court yesterday by lawyers for BrisConnections. Mr Bolton, a 26-year-old internet entrepreneur, owns 76 million partly paid units, with a further A$152 million owing on them, and has called an extraordinary general meeting to have BrisConnections wound-up. BrisConnections has responded by seeking to have Mr Bolton's company wound up. Page 16.

--

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

Australia and New Zealand Banking Group (ANZ) (ANZ.AX) subsidiary Esanda is to become a division of the bank in order to give the A$13 billion asset finance company access to the Federal Government's deposit guarantee. Esanda managing director Moray McDonald yesterday maintained the move was voluntary, saying that "we could have continued to use debenture funding, but our customers want the guarantee." The move will not change ANZ's capital ratios or affect the bank's balance sheet. Page 17.

--

The Takeovers Panel has said it considers the proposed A$800 million merger between mining companies Whitehaven Coal (WHC.AX) and Gloucester Coal (GCL.AX) "unacceptable,' and is expected to issue orders this week. Takeover Panel director Allan Bullman said the deal was unacceptable as it did not give shareholders the right to vote on the merger, which would have an effect on the control of Gloucester. The decision means shareholders will be able to vote on a rival A$396 million cash bid for Gloucester from Hong Kong's Noble Group (NOBG.SI). Page 18.

--

Ian Smith, the chief executive of gold producer Newcrest Mining (NCM.AX), has warned that the Federal Government's proposed emissions trading scheme will worsen job losses in the resources sector. Mr Smith said yesterday that "a lot of mining companies will stop exploring and expanding their activities in Australia as a result of this." The criticism of the proposed scheme echoes similar concerns from Federal Opposition Leader Malcolm Turnbull, who this week said the scheme would lead to thousands of job losses. Page 18.