PRESS DIGEST-Australian Business News - Nov 10

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)

Private equity firm Pacific Equity Partners (PEP) has settled a dispute with marketing services group WPP, and is believed to have agreed to pay the London-based company A$10 million. PEP sold its stake in Sydney-based marketing company The Communications Group to WPP in 2006. WPP claims that PEP made secret payment to executives of the Sydney group to ensure they stayed with the company until the sale had been completed. Page 14.

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Private equity firm TPG yesterday conceded that its float of department store Myer (MYR.AX) as testing the reputation of the firm. However, the group's head of Australian and New Zealand operations, Ben Gray, defended the poorly received float, saying "I think it will take a bit of time unfortunately for the stock to recover above issue price – but there is no question in my mind that it will recover." Page 14.

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The introduction of a new pricing model for telecommunications companies to access Telstra's (TLS.AX) copper network may be delayed. Industry commentators say the Australian Competition and Consumer Commission has indicated that it will instead retain the current prices until the end of next year. Telstra has been calling for a freeze on prices until negotiations with the Federal Government on selling parts of its operations to the national broadband network are complete. Page 14.

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Ryan Stokes has been re-elected to the board of media group Seven Network (SEV.AX) after companies owned by his father, Kerry Stokes, voted to support his retention. Almost 38 million votes were cast against the re-election of Ryan Stokes. Industry sources say the vote against him was due to concerns about a lack of independent directors on the group's board, rather than a judgement against the performance of Ryan Stokes. Page 15.

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

The board of Axa Asia Pacific Holdings (APH) (AXA.AX) yesterday rejected an A$11.7 billion takeover offer from insurance company AMP and French parent company Axa. The bid would see AMP take control of the Australian and New Zealand divisions of the company, with the fast-expanding Asian business sold to French insurer Axa for A$7.7 billion. Both the board of APH and institutional shareholders have criticised the offer as underpriced and opportunistic. Page 19.

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Explosives manufacturer Orica (ORI.AX) yesterday reported an annual net profit of A$541.8 million to September 30. Chief executive Graeme Liebelt said "this year, more than any other, all that strategic work we have done over the past decade or more is being played out in our results." The company also said it will go ahead with plans to spin-off its Dulux Group consumer products business during 2010 if debt markets improve. Page 20.

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Research and consultancy firm Chant West has found that retail superannuation funds outperformed industry funds over the seven months to the end of September. The median retail fund returned 24.1 percent during the period, compared to a 15.7 percent return from the median industry fund. Analysts say the retail superannuation sector suffered greater falls than the industry sector during the financial crisis due to greater exposure to listed assets. Page 20.

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