PRESS DIGEST-Australian Business News - June 2

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 Rio Tinto (RIO.AX)(RIO.L) and Chinese aluminium company Chinalco have agreed to delay a deadline on Chinalco's decision to help fund the US$1.8 billion expansion of Rio's Yarwun 2 alumina refinery in Queensland. The delay, which extends the deadline until June 15, is expected to allow time for the release of the Foreign Investment Review Board's recommendation on whether a US$19.5 billion deal between the two companies should be allowed in its current form. Page 17.

--

Energy infrastructure group Hastings Diversified Utilities Fund (HDF.AX) has rejected an offer from a United States energy investment company, Trust Company of the West, to pay A$300 million for its gas pipeline business, Epic Energy. The decision has been supported by Hastings' major shareholders, with one analyst describing the offer as "extremely opportunistic'. The sale of Epic Energy is thought to have attracted attention from at least 15 parties, with indicative bids due by the middle of next month. Page 18.

--

Melco Crown's (MPEL.O) City of Dreams casino complex in Macau was officially opened last night, with Australian businessman James Packer, whose company Crown Limited (CWN.AX) is believed to spent around US$500 million on the project over the last three years, in attendance. The project cost around US$2 billion in total, and the next few months are likely to decide whether the casino is capable of providing a return on that investment, according to analysts. Shares in Crown yesterday fell 3 cents to close at A$7.01 per share. Page 18.

--

Oil and gas producer Santos (STO.AX) yesterday lodged its submission to the Federal Government's energy review, arguing that replacing coal with gas in electricity generation could cut 20 percent of Australian greenhouse gas emissions by 2050. Santos chief executive David Knox said the rival coal industry had lobbied the Government very successfully, and that the gas sector needed to do a better job of 'talking about the gas story.' Mr Knox called for plans to give the coal sector a large amount of free carbon permits to be reconsidered. Page 16.

--

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

The board of the National Stock Exchange has resigned, following a decision by the Federal Court to allow a general meeting, called by two dissatisified former directors, to go ahead. The resigning directors released a statement saying they 'believe there is a sufficient expression of shareholders such to indicate that a change to the board will result at the meeting.' The former board has been criticised for using shareholder funds to try to prevent the general meeting from taking place. Page 19.

--

Gold Coast financier City Pacific (CIY.AX) has questioned the legality of a hostile takeover bid for its A$630 million First Mortgage Fund. City Pacific chief executive John Ellis yesterday said that 'preliminary legal advice' suggests the offer, by Trilogy Capital Group and Balmain Commercial, might contain 'legal defects'. Trilogy executive chairman Rodger Bacon dismissed the claims. Page 19.

--

Independently owned grocery chain Metcash (MTS.AX) has reported a 14 percent increase in annual profit, according to chief executive Andrew Reitzer. Mr Reitzer said the growth is set to continue, as consumers had become more cost conscious and this mapped well with the profile of the IGA supermarkets run by the company. 'We sell everyday consumer items; there is nothing in our basket that's subject to discretionary spending,' Mr Reitzer said yesterday. Page 19.