PRESS DIGEST-Australian Business News - March 13

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)

-- Telecommunications group Telstra (TLS.AX) will today release a report claiming that its approach to building the Federal Government's proposed national broadband network would provide greater economic benefits than rival proposals. Although Telstra was excluded from the bidding process for the tender to build the network in December, Communications Minister Stephen Conroy is still to announce the winner of the A$10 billion project. The release of the report is seen as part of a campaign for the project by Telstra. Page 42. --Supermarket chain Woolworths (WOW.AX) may receive up to NZ$6.4 million in dividends this year from its stake in New Zealand retailer The Warehouse Group. Despite a 24 percent fall in first-half profits, Warehouse has maintained its interim dividend and is expected to maintain full-year dividends. Woolworths has a 10 percent stake in Warehouse, and analysts believe the Australian company may again attempt to takeover Warehouse, after failing to receive approval for a takeover on competition grounds last year. Page 42. --Lawyers for troubled toll road operator BrisConnections BCS.AX have accused the company's largest shareholder, Nicholas Bolton's Australian Style Investment (ASI), of unconscionable conduct. BrisConnections' lawyers say that investors who made a gift of their units to Mr Bolton's company did so only to avoid the liabilities still owing on the units, and that ASI was helping these people to avoid legitimate debts. The toll-road operator is seeking to have ASI wound up. Page 43. --Troubled clothing and underwear supplier Pacific Brands (PBG.AX) is believed to have only been able to push through price rises of between 5 percent and 10 percent to retailers, despite seeking far higher increases during negotiations which started late last year. Pacific Brands sought the increases following the sharp fall in the value of the Australian dollar last year. The company, which has over A$800 million of debt, has been heavily criticised following a recent decision to close most of its local manufacturing and cut 1850 jobs. Page 43. THE AUSTRALIAN (www.theaustralian.news.com.au) -- Allco Finance Group (AFG.AX) administrator McGrathNicol is investigating transactions between the asset manager and some of its units and joint venture partners. One transaction in particular, in which Allco directors David Coe and Gordon Fell were paid A$63.7 million in cash by Allco for their stakes in property manager Rubicon, may be 'characterised as an uncommercial transaction,' according to McGrathNicol. The administrator has recommended Allco and its subsidiaries be wound up. Page 17. --Listed property trust GPT Group (GPT.AX) may be forced to pay up to A$600 million to its co-investor in Melbourne's Highpoint shopping centre. The Besen family in Melbourne has a put option on its stake in the shopping centre which would require GPT to buy the stake if the put is made before the end of this month. The payment would again push GPT close to breaching its debt covenants, after the company last year avoided a breach by undertaking a A$1.6 billion capital raising. Page 17. --The Minerals Council of Australia, which represents mining and exploration companies, yesterday said almost 11,000 mining jobs have been lost since June, reducing the number of mine workers in Australia to around 130,000. The cuts are blamed on falling global demand for commodities, as well as dramatically reduced prices. However, the council's education and training director, Chris Fraser, is predicting that the sector will require a further 80,000 people by 2020. Page 18. --An offtake agreement between mining companies BHP Billiton (BHP.AX) and Western Areas (WSA.AX) will see BHP purchase up to 10,000 tonnes of nickel concentrate a year from Western Areas' Forrestania project in Western Australia. BHP has also agreed inject A$45 million into the company, which will be used on expansion plans by Western, with repayment of the loan to start in July 2012. Western Areas' managing director Julian Hanna said of BHP as a customer, 'they are as good as it gets.' Page 18. THE SYDNEY MORNING HERALD (www.smh.com.au) -- Australia and New Zealand Banking Group (ANZ.AX) has appointed a former Citigroup banker, Shayne Elliott, as group managing director of the bank's institutional division. The role will see Mr Elliott take charge of ANZ's relationship banking, global markets, transaction banking and balance sheet management. Mr Elliott is the replacement for Peter Hodgson, who left the role following the bank's involvement in the collapse of Melbourne stockbroking firm Opes Prime. Page 21. --Further claims that printing and distribution group PMP (PMP.AX) failed to properly distribute advertising material while charging customers has emerged. Online DVD rental service Quickflix said it had confronted PMP around two years ago over its poor delivery service. Last June, PMP was warned by its lawyers, Makinson & d'Apice, that it could be exposed to 'action, both civil and criminal' due to delivery irregularities. PMP this week said the distribution issues have been 'appropriately dealt with.' Page 22. --The New South Wales Finance Minister, Joe Tripodi, yesterday started briefing possible buyers of the state's power retailers - Integral Energy, Energy Australia and Country Energy. Energy companies AGL Energy Ltd (AGK.AX) and Origin Energy (ORG.AX) are the two most likely buyers, with foreign buyers facing funding difficulties, and troubled investment bank Babcock & Brown Power (BBP.AX) no longer a viable proposition. With so few bidders, analysts say the state Government may break up the retail companies to encourage a more competitive auction of the assets. Page 23. --A report by economic forecaster BIS Shrapnel says a second phase of the economic downturn will emerge over the coming year as a collapse in business investment follows the first wave of lower household spending. Frank Gelber, the chief forecaster at BIS, notes that with large companies such as miner Rio Tinto struggling to find funding, projects from smaller companies have little chance of attracting funds. Mr Gelber says that although Australia would suffer a major downturn, 'overseas it's an absolute disaster.' Page 23. THE AGE (www.theage.com.au) --An inquiry by the Federal Government's Corporations and Markets Advisory Committee into 'aspects of market integrity,' has received 15 submissions already this week. The Law Council of Australia's submission calls for market manipulation laws to be reviewed to help the Australian Securities and Investments Commission's ability to investigate false rumours. The committee has also been asked to examine directors' margin loans, directors' trading during blackout periods, and corporate analysts' briefings. Page B1. --Wal King, the chief executive of project developer Leighton Holdings (LEI.AX), says the Federal Government needs to provide 'political courage and leadership,' if Australia's infrastructure needs are to be met. Mr King says the Government's infrastructure program could not be delivered using traditional methods, and raises the possibility of the reintroduction of infrastructure bonds. Mr King is also calling for the costs of tendering for government-backed infrastructure projects to be reduced. Page B3. --New South Wales coal seam gas (CSG) company Eastern Star Gas (ESG.AX) has raised the possibility of using its CSG assets to eventually create a liquefied natural gas (LNG) export project based in Newcastle. Managing director David Casey yesterday said 'we are not saying we are an LNG company. But we hope to be one, and there is no reason why we couldn't be.' Eastern Star recently successfully completed a A$50 million share placement, and A$16 billion of investment was made in Queensland's CSG market last year. Page B3. --In a submission to a Federal Government inquiry, the Australian Securities Exchange (ASX) has said the immediate need for increased regulation of margin loans on shares held by company directors has receded. The ASX said the practice should be addressed by companies themselves, in director's trading policies. The issue of directors' margin loans came under scrutiny last year after directors of several companies were forced to sell shares to meet margin-loan calls. Page B4.