PRESS DIGEST-Australian Business News - July 24
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)
Billionaire James Packer's Crown Ltd (CWN.AX) yesterday abandoned a planned involvement in a US$1.5 billion (A$1.55 billion) casino in the Philippines. Crown had said on June 16 that it would have minimal equity participation in the Manila Bay project. This is the second overseas project that Crown has walked out of in six weeks amid rising debt-funding costs because of the global credit crisis. Investors approved of the announcement, pushing up Crown's share price by 4.2 percent to A$8.33. Page 14.
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United Group (UGL.AX) may participate in a train manufacturing joint venture in India, the engineering services company announced yesterday. United said it was conducting a feasibility study for the project together with Texmaco, a subsidiary of Indian conglomerate Aditya Birla Group. "We are attracted by the size and potential of the market," said United chief executive Richard Leupen. The company already has a presence in India with its property management company, which operates in four major cities. Page 14.
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Utility group AGL Energy (AGK.AX) has paid the embattled Allco Finance Group (AFG.AX) A$12.5 million for a suite of seven wind farm sites in New South Wales, Queensland and South Australia. The biggest project in the suite is the 180 megawatt World's End site at Burra in South Australia. AGL managing director Michael Fraser said yesterday that the purchase was part of the company's strategy to meet the requirements of the Federal Government's mandatory renewable energy target scheme. Page 16.
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Grains handler GrainCorp (GNC.AX) has signalled a conciliatory approach to stockfeed maker Ridley Group (RIC.AX) after conceding its hostile one-for-nine scrip takeover bid for the latter would be unsuccessful. The offer initially valued Ridley at A$1.39 a share, or A$415 million, but a 37 percent slide in GrainCorp shares since May whittled this down to A86 cents a share or A$260 million. GrainCorp managing director Mark Irwin said yesterday that Ridley was a valued customer, and both companies would benefit by working together. Page 16.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Diversified miner BHP Billiton (BHP.AX) has announced a major find near its Escondida copper mine in Chile. BHP said yesterday the resource may contain at least one billion metric tonnes of porphyry-style mineralisation. The company said it would spend US$327 million (A$337 million) on further drilling at the site and two other prospects in the vicinity. BHP owns 57.5 percent of Escondida, the world's largest copper mine, while Rio Tinto (RIO.AX) has a 30 percent stake and a Japanese-led consortium owns the rest. Page 22.
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Westpac Banking Corp's (WBC.AX) latest regional economic report has predicted that the prices of farm products will remain high for the next decade. Westpac senior agribusiness economist Justin Smirk said yesterday that farm prices, already at 20-year highs, were being propelled by demand from emerging economies including China, India and Brazil. He said while wheat prices were expected to decline over the next two years, a small dry season anywhere in the world would be enough to lift the price again. Page 22.
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Leading telecommunications group Telstra (TLS.AX) has cut about 120 staff at its Chinese real estate and home improvement online business, Soufun Holdings. The announcement came weeks after Telstra abandoned a planned mid-2008 initial public offering for Soufun, which it bought 51 percent of in 2006 for A$251 million. A spokeswoman for Telstra subsidiary Sensis China blamed slowing business activity linked to the Beijing Olympics for the staff cuts, as construction has halted and the number of cars has been reduced. Page 23. Continued...
