PRESS DIGEST-Australian Business News - Aug 19
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)
-- Building materials group Boral (BLD.AX) is recruiting a replacement for outgoing chief executive Rod Pearse. Possible candidates include chief financial officer Ken Barton, Australian construction materials executive general manager John Douglas, and Boral USA president Emery Severin. Boral is expected to report a decline in full-year net profit to $120 million today, but solid results from Fletcher Building (FBU.NZ), Leighton Holdings (LEI.AX) and James Hardie (JHX.AX) are boosting expectations. Page 49.
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Mining company Fortescue Metals Group (FMG) (FMG.AX) chief executive Andrew Forrest has invited steel mills in Japan and Korea to "put a deal," if interested in securing the same 35 percent iron ore discount that China-based Baosteel and China Iron and Steel Association have. FMG's deal has topped rival Rio Tinto's (RIO.AX) 33 percent discount to Asia-based mills. Mr Forrest believes his deal has made Australia's iron ore marketing more competitive, but several analysts disagree and warn it could negatively affect the industry. Page 48.
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Packaging company Amcor (AMC.AX) has made an A$2.4 billion offer to acquire Alcan's pharmaceutical, packaging and European/Asian food assets from Rio Tinto. Amcor chief executive Ken MacKenzie says the deal would bring $200 million in cost savings, and be funded via a fully underwritten A$1.6 billion four-for-nine rights issue and syndicated bank debt worth A$800 million. Rio Tinto says it will respond after consulting the European works council. Page 47.
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French energy company GDF Suez (GSZ.PA) is preparing to acquire a 60 percent stake in Northern Territory-based Petrel, Tern and Frigate gas fields for US$200 million (A$243 million). Suez will pay the stake owner, oil and gas explorer Santos (STO.AX), a further US$170 million (A$206.7 million) after reaching a final decision to proceed with the Bonaparte Basin-located liquefied natural gas project. Meanwhile, Royal Dutch Shell (RDSa.L) has proposed new technology for its West Australia-based Prelude and Concerto fields near Broome. Page 47.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
-- Australia Pacific LNG, the joint venture consisting of energy companies Origin Energy (ORG.AX) and ConocoPhillips (COP.N), has been cleared to develop an A$35 billion liquefied natural gas (LNG) project on Curtis Island's Laird Point, located in Queensland's Gladstone region. Deutsche Bank analysts say the companies had previously made an unsuccessful attempt to secure a site further south on Curtis Island. Australia Pacific LNG Project Director Todd Creeger says confirmation of the site alone demonstrates the project is on-track to sell its first LNG batch to the international markets in 2014. Page 20.
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New cost estimates for development of the former Melbourne city Myer department store site have raised the initially expected figure of A$1.2 billion to A$1.4 billion. Joint site owners Colonial First State Retail Trust (CFX.AX), Singapore Government-owned GIC Real Estate, and the Myer Family Company, had paid a record A$600 million purchase price during 2007. CFX Head of Development Tony Gilchrist says additional demolition costs and two laneway acquisitions were contributing factors. Page 21.
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Steel producer Onesteel (OST.AX) has announced plans to retrench 1,240 of its Australia-based staff. The move comes after the company posted a second-half profit of A$2 million, avoiding its first ever half-year loss since its 2000 spin off from mining company BHP Billiton (BHP.AX). OneSteel chief executive Geoff Plummer says the cuts would save A$160 million annually and affect all operations. Staff may be rehired if conditions improve, but an annual saving of A$100 million must still be made. Page 21. Continued...
