PRESS DIGEST-Australian Business News - Mar 27
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)
Melbourne-based group Acacia (ACTG.O), which has bid for the Federal Government's national broadband network tender, has assembled a group of advisers for the project including Australia and New Zealand Banking Group (ANZ.AX) and Deutsche Bank. Analysts say Acacia is increasingly seen as a likely winner of the tender for the A$10 billion project. Communications Minister Stephen Conroy is expected to make an announcement on the project next month. Page 43.
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Peter Goode was yesterday appointed chief executive of engineering services provider Transfield Services, replacing Peter Watson, who resigned last November. Mr Goode acknowledged the company's recent problems, saying 'we need to admit there has been a bit of a loss of investor confidence recently.' Mr Good said he would concentrate on the company's future and 'try to use the strong balance sheet to move the company ahead.' Page 43.
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Mining company BHP Billiton (BLT.L) yesterday raised a further A$4.36 billion on the bond market, increasing the amount the company has raised during the past week to A$9 billion. The moves have increased speculation that the miner is preparing to make an acquisition, despite the company saying the funds are for general corporate purposes. Analysts had expected BHP to buy assets from its rivals hit by the economic downturn, however, the company may have to alter its plans following the emergence of Chinese investors interested in the sector. Page 44.
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Warwick Syphers, the chief executive of regional television and radio network Prime Media Group (PRT.AX), says the company's current cost management program will not lead to job losses. Mr Syphers said cost-cutting via such measures is 'not our style,' but admitted that the issue may be re-examined if the advertising market remains weak. The comments were made as Prime revealed plans to raise A$110 million through a capital raising and a share placement with metropolitan television broadcaster Seven Network. Page 45.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Securities and Investments Commission has succeeded in its bid to have collapsed financial planning firm Storm Financial liquidated. The Federal Court yesterday ruled that placing Storm into liquidation would provide creditors a better outcome than the deed of company arrangement proposed by Storm's founders, Emmanuel and Julie Cassimatis. The firm's creditors are collectively owed A$78 million, and around 1300 former clients are pursuing legal action against the firm. Page 17.
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Diversified funds management group AMP (AMP.AX) has put in place a pay freeze for its senior staff and directors. Chairman Peter Mason announced the pay freeze in the company's annual report, saying 'we believe this action is prudent in the current environment.' Meanwhile, AMP director David Clarke will face a challenge to his re-election this year, with shareholder groups preparing to vote against him. Mr Clarke is a former chief executive of Allco Finance Group, and has been blamed for transactions which led to Allco's collapse. Page 17.
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Guy Elliot, the chief financial officer of mining company Rio Tinto, (RIO.AX) yesterday acknowledged that the miner has been working on an alternative plan for addressing its debt burden, should the proposed US$19.5 billion investment deal from China's Chinalco fail to eventuate. Mr Elliott said the deal with Chinalco was the preferred option, but the proposal is yet to be approved by both the Foreign Investment Review Board and Rio's shareholders. Page 17. Continued...
