PRESS DIGEST-Australian Business News - Oct 2
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)
Troubled ports, electricity and rail asset owner Babcock & Brown Infrastructure (BBI) BBI.AX will revert to its original name of Prime Infrastructure and undertake a capital raising of up to A$650 million. The raising is part of a deal the company is believed to have reached with Canadian fund manager Brookfield Asset Management as it seeks to address it's A$8.4 billion of debt. News of the raising comes only days after BBI rejected an alternative proposal from Royal Bank of Scotland. Page 43.
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Private equity firm Archer Capital is considering floating Ascendia Retail, owner of sporting goods and fashion retailers Rebel Sports, Amart Allsports and Glue. The company will change its name to Rebel Group. Archer will today hear pitches from a number of investment banks seeking a role in the possible initial public offering. Fund managers say Rebel is one of four or five companies which may float before the end of the year, including retailers Myer and Kathmandu, and Macquarie Private Equity's Miclyn marine business. Page 43.
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Pulpwood Plantations Pty Ltd (PPPL) is sending notices to 11,000 grower investors in the collapsed forestry scheme provider Great Southern in a bid to change the firm's responsible entity. The change would allow a proposal for PPPL to acquire a number of Great Southern's pulpwood plantation projects to go ahead. Great Southern's timber assets are thought to be worth more than A$500 million, and receiver McGrathNicol has called for expressions of interest in acquiring all or part of the group. Page 44.
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Rupert Murdoch's News Corporation (NWSA.O) has announced a number of executive changes in its digital media division, as the media company continues to search for a profitable online business model for its media assets. Mr Murdoch recently said he would look at ways of charging for all of News Corporation's online news content. Jon Miller, the group's chief digital officer, said the revamped digital media division would provide a long-term vision for online product and online revenue generation across the entire group. Page 44.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Investment financier Macquarie Bank (MQG.AX) yesterday continued its recent spate of opportunistic acquisitions, announcing the purchase of assets both locally and overseas. Macquarie announced it has purchased United States and British investment bank Fox-Pitt Kelton Cochran Caronia Waller for US$130 million, and has also acquired A$1 billion of local leases and loans from Ford Motor Credit. Macquarie has now spent more than A$800 million this year on overseas assets as it seeks to take advantage of the downturn. Page 21.
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The Productivity Commission this week recommended the abolition of "no-vacancy' clauses in company constitutions, which allow boards to set the number of directors on their board at any particular time, and can be used to impede the election of candidates not endorsed by the board. Associate commissioner Allan Fels yesterday said the recommendation is likely to receive criticism once its implications become clear to directors, however, he said the commission believed shareholders should have a say on board numbers. Page 21.
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Steel manufacturer BlueScope Steel (BSL.AX) yesterday said the company would increase production at its Port Kembla steelworks to full capacity this quarter, following strong demand during the September quarter. Previously, BlueScope had said it would only ramp up production to 75 percent capacity due to uncertainty surrounding future demand. Analysts say BlueScope's move to increase production has occurred more quickly than expected, with rival OneSteel last week signalling a slower recovery. Page 22.
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Fast food retailer Domino's Pizza Enterprises yesterday said it plans to open new stores in at least 20 areas in Australia and New Zealand over the next twelve months, as it aims to secure a 60 percent share of the national pizza market within five years. Chief executive Don Meij said the company would concentrate on Sydney and Melbourne, where the company is under-represented. Mr Meij also said that the downturn has had little effect on Domino's, saying "pizza is a staple, during good or bad times people afford pizza.' Page 22.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
The national president of the Communications, Electrical and Plumbing Union, Ed Husic, has called for the Federal Government and telecommunications company Telstra (TLS.AX) to outline how the proposed separation of Telstra's wholesale and retail divisions will affect its workers. Telstra has long had a combative relationship with unions, and Mr Husic yesterday said "frankly, it doesn't take much for Telstra to justify cutting jobs and conditions.' Page 3.
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Hotel property owner Hedley Leisure and Gaming (HLG) this week filed its company accounts, revealing that all but one of its pubs in New South Wales (NSW) are now worth less than their cost price. The accounts also show that HLG has written-down the value of it's A$962 million hotel portfolio by A$93 million, A$90 million of which came from its NSW portfolio. Analysts say it is still unclear whether the valuations are now at market level, or whether they will require further cuts. Page 4.
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Power utility AGL Energy (AGK.AX) yesterday announced the sale of its Hallett 4 wind farm in South Australia. AGL, which will continue to run the wind farm and retain the rights to all electricity output and renewable energy certifications from the farm until 2036, will make A$88 million in development fees from the sale. The wind farm has been purchased by the Energy Infrastructure Investments consortium, which includes APA Group and Japan's Marubeni Corporation and Osaka Gas. Page 4.
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THE AGE (www.theage.com.au)
The Commonwealth Bank of Australia (CBA.AX) yesterday published notice of its annual meeting, including details of the bank's overhauled long-term incentive scheme. The scheme could provide chief executive Ralph Norris with up to A$7.86 million in shares over the next five years, however, the bank's board said Mr Norris would have to surpass a number of performance hurdles, and it is more likely that Mr Norris will receive around A$4.93 million in shares. Shareholders will vote on the scheme next month. Page B1.
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Figures from the Australian Industry Group (AiG) show that Australia's manufacturing sector saw increased activity for the second consecutive month in September, reaching its highest level since December 2007. AiG chief executive Heather Ridout said that despite the growth, the manufacturing sector recovery remains only "nascent,' and could collapse if the Reserve Bank of Australia starts increasing interest rates. The Reserve Bank will hold its monthly board meeting next Tuesday. Page B1.
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The video game industry in Australia is already grossing more than the cinema box office and DVD sales, and the in-game advertising market is starting to develop strongly. In recent months, companies such as Coca-Cola, Wrigley, Telstra, Kia, Mitsubishi, Nokia and Intel have booked campaigns on Xbox 360 and Playstation 3 platforms. However, the largest spender on in-game advertising is the public sector, with government agencies such as the Victorian Transport Accident Commission running ads in a range of games. Page B1.
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The National Breast Cancer Foundation, whose Pink Ribbon marketing campaign last year raised over A$5 million by allowing brands such as Mount Franklin water and Dove soap to use its trademark, is trying to prevent a company using the pink ribbon logo to market online weight-loss products. The charity has hired private investigators but has not yet identified the company behind the scam. However, Canadian company JDW Media LLC is thought to be linked to the scam. Page 2.
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