PRESS DIGEST-Australian Business News - May 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)

Queensland toll-road operator BrisConnections (BCSCB.AX) will this week appoint a debt collection agency in an attempt to recover unmet second instalment payments on the company's units. BrisConnections has received A$111.7 million in payments, less than a third of the A$390.4 million due to be paid last month. The company's undewriting agreement with Macquarie Group (MQG.AX) and Deutsche Bank (DBKGn.DE) requires BrisConnections to use its 'best endeavours' to recover the money for six months after the due payment date. Page 17.

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Surfwear company Billabong International (BBG.AX) yesterday announced a profit downgrade, with net profit for the year to the end of June expected to be between A$160 million and A$165 million. Chief executive Derek O'Neill said it was difficult to predict future sales as retailers are cutting orders and focusing on the short-term. Billabong also announced that it is to undertake a capital raising which could provide the company with up to A$290 million, with the issue priced at a 29 percent discount. Page 17.

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Telecommunications company Optus (SGT.AX)(STEL.SI) will argue that its rival Telstra (TLS.AX) should be forced to demerge its retail and wholesale operations, and that the Australian Competition and Consumer Commission should be given greater powers to ensure a demerged retail arm of Telstra does not receive discounts from the wholesale arm. Optus's arguments are contained in a 100 page submission that the company will provide to the Federal Government's review of the telecommunications industry. Page 18.

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Grain exporter GrainCorp (GNC.AX) has announced a A$60 million capital raising, with the funds to be used to reduce gearing and take advantage of growth opportunities. The institutional offer is priced at A$6.25 a share, a 15.5 percent discount to the stock's last closing price, while a share purchase plan will be launched next month. The move comes as the company yesterday announced a first-half net profit of A$32.3 million, and reaffirmed its full-year earnings forecast of between A$37 million and A$42 million. Page 19.

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

Qantas Group (QAN.AX) yesterday announced the introduction of interline arrangements which will allow Qantas Airways and Jetstar Asia to offer integrated ticketing to all Jetstar Asia ports. The arrangements, which will be in place from the start of August, are intended to create a Singapore hub for the two airlines which will increase Jetstar Asia's global profile and provide Qantas with feeder routes for its flights to and from Singapore. Jetstar yesterday said it plans to introduce similar arrangements with a number of other carriers. Page 18.

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Metals and mineral trading company China Minmetals has gained approval from a key Chinese regulator for its proposed purchase of most of mining company OZ Minerals' (OZL.AX) assets for US$1.2 billion. However, Minmetals still requires a number of approvals from the Chinese government, as well as Australia's Foreign Investment Review Board and OZ shareholders, who are to vote on the deal at the company's annual general meeting on June 11. Page 18.

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A report by the Australian Farm Institute has recommended that the number of wool-selling centres be reduced due to a decline in wool production. Although around 90 percent of Australia's wool is sold through five wool centres, the amount of bales sold has dropped from almost 3.5 million in 2000 to around 2.5 million in 2008. Peter Morgan, of the Australian Wool Industries Secretariat, says that the decline 'has really precipitated the need for a bit of thinking about it.' Page 19.