PRESS DIGEST-Australian Business News - March 25

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)

Department store Myer yesterday announced that company earnings before interest and tax for the six months to the end of January had risen by 6.6 percent, despite sales falling 3.7 percent to A$1.76 billion. Chief executive Bernie Brookes said the retailer's strategy to target customers from a wider demographic range than upmarket rival David Jones has helped Myer to better withstand the economic downturn. Despite the positive result, Mr Brookes said the company was preparing for a difficult July quarter. Page 48.

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Premium retailer Oroton Group (ORL.AX) yesterday reported results for the six months to January 24, with net profit increasing by 20.4 percent to A$12.5 million. Chief executive Sally Macdonald said that although the retailer was hoping for strong sales over the Easter period, "we are prepared for any situation." Oroton Group holds the licences for brands such as Oroton and Polo Ralph Lauren, although the company is negotiations about renewing the Polo licence which expires in 2010. Page 48.

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Gaming and wagering group Tabcorp Holdings (TAH.AX) yesterday announced plans to raise around A$200 million via an issue of new Tabcorp corporate bonds. The raising follows an institutional share placement and a share purchase plan that raised a total of A$379 million earlier this year. Chief executive Elmer Funke Kupper said that the company had chosen to use a bond issue to "diversify our funding and also to lengthen our maturity profile." Page 49.

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Coal seam gas company Arrow Energy (AOE.AX) has accepted British energy company BG Group's (BG.L) offer for its 20.31 percent stake in Queensland coal seam gas explorer Pure Energy (PES.AX). The acceptance of the bid will lift BG's stake in Pure to over 90 percent, allowing BG to compulsorily acquire all remaining shares in Pure. BG will now also pay an extra A25 cents for all Pure shares, raising the price to A$8.25 a share. Arrow will receive more than A$215 million for its stake, after originally acquiring the shares for around A$12 million. Page 49.

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

The Australian Securities and Investments Commission (ASIC) yesterday asked the Federal Court in Brisbane to wind up the troubled financial planning firm Storm Financial. ASIC has asked the court to wind up the company before creditors are able to vote on a deed of company arrangement proposed by the firm's founders, Emmanuel and Julie Cassimatis. The regulator says the deed would let the founders off the hook, as it provides immunity for Storm directors from financial demands. Page 19.

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Queensland coal mining company New Hope Corporation (NHC.AX) yesterday released its first-half results, reporting a net profit of A$1.82 billion following the sale of its New Saraji coal project in Queensland. Underlying profit increased by 261 percent compared with the same period last year to A$132.4 million, helped by higher coal prices and a fall in the Australian dollar during the period. Chairman Rob Millner reaffirmed the miner's full-year profit guidance and said "we have an exceptionally strong balance sheet and are very well positioned for future opportunities." Page 20.

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Australia and New Zealand Banking Group (ANZ) (ANZ.AX) has confirmed it will cut 100 jobs from its Melbourne call centre, with the bank's call centre in New Zealand's Wellington gaining the jobs. Although the reduction in jobs at the Melbourne centre will take place through natural attrition, the Financial Sector Union has criticised the move, saying that ANZ has pocketed billions of dollars in profits off the backs of Australian taxpayers, but is still moving jobs offshore. Page 21.