PRESS DIGEST-Australian Business News - Oct 20
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)
Oil and gas company Oil Search (OSH.AX) yesterday announced it would undertake an A$895 million share placement after being forced to abandon a deal with Abu Dhabi-based International Petroleum Investment Corp (IPIC). Managing director Peter Botten said that the deal, to sell IPIC a 3.5 percent stake in the company's liquefied natural gas project in Papua New Guinea, was rejected by the Australian Securities Exchange as a related party-transaction, as IPIC also owns government bonds related to the project. Page 18.
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Outdoor wear and camping goods retailer Kathmandu yesterday launched its prospectus in preparation for a planned A$375 million initial public offering. Speaking at the launch, chief executive Peter Halkett said the company intends to open 70 new stores over the next three to five years, including 12 by the end of this financial year. The company, currently owned by Goldman Sachs JBWere's Hauraki Equity No.2 fund and Quadrant Private Equity, is scheduled to be dual-listed on the Australian and New Zealand exchanges on November 18. Page 18.
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Broadcaster Seven Media Group (SEV.AX) is expected to announce details of its standard definition digital channel this week. The broadcaster yesterday released a statement saying, 'It's time and it's coming soon to Seven,' however, executives from Seven would not comment on the statement. Industry sources say the new digital channel will be launched in November so that it can be included in negotiations with large media buyers over advertising rates and deals for next year. Page 18.
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Gaming company Tabcorp (TAH.AX) yesterday said it would increase spending on its Queensland casino properties in the next few years. Speaking at the company's annual general meeting, chief executive Elmer Funke Kupper said, 'Queensland is a tough economy right now but we think ultimately this is one of the growing states in the country.' Mr Funke Kupper said Sydney's Star City casino had benefited from increased spending on its refurbishment, with normalised revenue for the September quarter increasing 11.6 percent. Page 19.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Industry body The Retailers Association (TRA) has called for the Australian Competition and Consumer Commission to reject supermarket chain Woolworths' (WOW.AX) bid to acquire hardware distributor Danks. Danks currently supplies around 1400 independently owned hardware stores, and Woolworths plans to open its own chain of 'big box' format hardware stores. Page 21.
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Wayne McCrae, the executive chairman of copper mining company Cudeco (CDU.AX), has said he will update a resource statement for the Rocklands project in Queensland by the end of the year. The statement will be the first resource update since June 2006, when the company initially claimed a 59 million tonne copper resource, causing the company's share price to surge. However, the Australian Securities Exchange swiftly forced the company to reduce its resource claim to 25 million tonnes after the initial statement was examined by geologists. Page 21.
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Iron ore mining company Fortescue Metals Group's (FMG.AX) chief executive, Andrew Forrest, yesterday said the company is 'still open for talks with China,' despite the failure of recent talks aimed at securing US$6 billion in funding through Chinese sources. However, Mr Forrest said Fortescue had other possible sources of funding for the planned expansion of its operations in Western Australia's Pilbara region. Fortescue yesterday also said it intends to broaden its customer base and will target buyers in Japan and South Korea next year. Page 22. Continued...
