PRESS DIGEST-Australian Business News - March 24
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)
Mining company OZ Minerals (OZL.AX) will have to wait another 90 days before finding out if the proposed A$2.6 billion takeover by China Minmetals has been approved. OZ was last night told by the Foreign Investment Review Board that the extra time is required to examine the proposal. OZ is now in talks with its lenders over the refinancing of A$1.1 billion of debt which is due by March 31, with the miner seeking an extension until September to avoid having receivers called in before the takeover can be completed. Page 16.
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Lawyers for the Queensland Government yesterday asked the Victorian Supreme Court to disallow a shareholder meeting which has been called to wind up the funding vehicle for toll road company BrisConnections BCSCA.AX. The meeting has been called by BrisConnections' largest shareholder, Nick Bolton. Counsel for the Government said the company's project was 'of vital importance for the state of Queensland,' but admitted that it does not 'have authority for a case of this kind'. Page 16.
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Perth-based mining company Straits Resources (SRL.AX) has agreed to a proposed deal with Thailand's PTT Group PTT.BK which would provide the company with $335 million. The deal would see PTT, a diversified energy group which is 51.7 percent owned by the Thai Government, purchase 60 percent of Straits' coal assets along with its Yannarie salt project. The deal requires approval from the Foreign Investment Review Board. Straits said it would use the funds to make acquisitions in the mining sector. Page 16.
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Carrier Qantas Airways (QAN.AX) is expected to soon announce the results of a review of its management structure, which is expected to call for 100 senior executive jobs to be slashed. The job cuts are believed to be restricted to the senior management level, although further job losses have not been ruled out if the downturn in the airline industry worsens. The airline has seen a changing of the guard in its senior ranks since the appointment of Alan Joyce as chief executive last year, and Leigh Clifford as chairman a year earlier. Page 17.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Securities and Investments Commission has banned a Sydney broker for 18 months after finding that he spread false and misleading information about investment bank Macquarie Group (MQG.AX) and the Macquarie Cash Management Trust. The broker, John Macphillamy, sent emails to 32 traders in Australia and overseas on September 17, claiming there was a run on the cash management trust which would lead to Macquarie's share price falling dramatically. Page 17.
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Regional television broadcaster Prime Media Group (PRT.AX) is expected to announce details of a capital raising today, after entering a trading halt yesterday. It is thought the raising will be in two parts, a A$70 million entitlement issue and the issuing of new shares to media group the Seven Network (SEV.AX). Seven, which is owned by Kerry Stokes, is restricted from taking more than a 15 percent stake in Prime, which is expected to cost less than A$25 million. The funds are to be used to reduce Prime's A$270 million of debt. Page 17.
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Airline Virgin Blue (VBA.AX) yesterday announced that it has signed an agreement with United States carrier Delta Air Lines to allow each airline to carry passengers from each other's networks. The agreement will allow passengers to buy a ticket on Virgin's international airline, V Australia, to Los Angeles and then continue on to another destination within the US via Delta. News of the agreement saw Virgin's share price rise more than 13 percent yesterday. Page 19. Continued...
