PRESS DIGEST-Australian Business News - Nov 5
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 Xstrata Coal (XTA.L) yesterday filed a claim for A$120 million against steel maker BlueScope Steel (BSL.AX) in the Supreme Court of New South Wales. Xstrata has accused BlueScope of refusing to take delivery of coal shipments last year during the financial crisis, forcing the company to sell the coal to other buyers at a significant discount. BlueScope has denied that it had supply contracts with Xstrata. Page 16.
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Soft drink company Coca-Cola Amatil (CCL.AX) yesterday announced plans to spend between A$100 million and A$150 million installing bottle-making production units at its Australian plants. Two of the units, which produce PET resin bottles, will be installed next year at the company's Sydney plant at the cost of A$45 million. The company sold its bottle manufacturing operations to Visy Industries for A$157 million in 2002. Page 16.
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Perth-based company Quickstep Holdings (QHL.AX) yesterday said it has signed a preliminary agreement to make doors and panels for the Joint Strike Fighter military jet. Quickstep said the deal could be worth up to A$700 million over 20 years, causing the company's shares to rise 28 percent to A48.5 cents. Managing director Philippe Odouard said he expects a binding agreement with defence manufacturers Lockheed Martin and Northrop Grumman to be signed within three months. Page 16.
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Oil and gas company Woodside Petroleum (WPL.AX) yesterday issued US$700 million of bonds on United States bond markets. A company spokesperson said the funds will be used to repay short-term debt and for general corporate purposes, including capital expenditure. Analysts say the capital expenditure may refer to the addition of a second liquefied natural gas processing plant at its Pluto project off the West Australian coast. Page 17.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The chief financial officer of Westpac Banking Corp (WBC.AX), Phil Coffey, yesterday warned that overzealous regulation of the banking sector could lead to a global credit crunch. Australia's four major banks have been arguing against proposals to increase minimum bank liquidity levels contained in a discussion paper released by the Australian Prudential Regulation Authority in September. Page 19.
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Mining investment company Aston Resources yesterday agreed to purchase the Maules Creek coal project from mining company Rio Tinto (RIO.AX) for A$480 million. Aston is the private company of 33 year old Nathan Tinkler, a former electrician who sold his 10 percent stake in Macarthur Coal at the height of the boom last year for A$440 million. Mr Tinkler said Aston is seeking further coal assets before a possible float next year. Page 19.
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Treasury deputy secretary Jim Murphy is visiting Beijing this week to speak to Chinese officials on investing in Australia. Mr Murphy will seek to address concerns that the Foreign Investment Review Board has been inconsistent in its treatment of Chinese investment proposals. Mr Murphy said the Government's overriding principal was, and remains, the maintenance of a market-based system for investment. Page 20. Continued...
