PRESS DIGEST-Australian Business News - Nov 11

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)

Diversified corporation Wesfarmers' (WES.AX) chief executive, Richard Goyder, yesterday expressed caution over rising interest rates and the new workplace regulator, Fair Work Australia.

Mr Goyder - who oversees Coles supermarkets, Bunnings hardware, and chemical and insurance businesses - yesterday said these two factors may hinder the economic recovery. 'I for one am concerned that increasing interest rates, coupled with people working less hours, may impede the pace of recovery,' Mr Goyder added. Page 49.

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The global financial crisis continues to affect media group Fairfax Media's (FXJ.AX) earnings, with chief executive Brian McCarthy yesterday reporting that underlying earnings were down 15 percent in the four months to the end of October. Mr McCarthy announced the figure at the company's annual general meeting, which was chaired by the newly appointed Roger Corbett. Outgoing chairman Ron Walker and director Julia King both stepped down from their roles at yesterday's meeting. Page 49.

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Department store David Jones (DJS.AX) has bolstered staff working hours by 10 percent, and part-time and casual staff numbers by 1700, ahead of the Christmas and New Year trading period. DJs chief executive Mark McInnes yesterday said that trading continues to be volatile, and that the store has no plans to lift fixed costs. 'Consumers are still fragile and whilst we're building momentum it's still susceptible to shocks,' Mr McInnes added. Page 50.

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Television broadcasters Ten Network (TEN.AX) and Foxtel have decided to collaboratively sell sponsorship for their coverage of the Delhi Commonwealth Games in October 2010. The sponsorships will be sold on Ten's main channel and sports digital channel, as well as six channels that Foxtel will establish for the games. Foxtel chief executive Kim Williams says the combined effort came in response to advertiser demand for more comprehensive, consistent and seamless coverage. Page 50.

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

German construction company Bilfinger Berger <GBFG.DE announced yesterday that it is considering floating its Australian business for A$1.5 billion.

The initial public offering would include brands Abigroup and Baulderstone and allow the company to reduce its exposure to the building and civil construction market. A decision on the offering is expected to be announced early next year, as German senior executives are expected to arrive in Australia next week to meet with institutions and banks. Page 35.

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According to Arthur Kroeber, managing director of search firm Dragonomics, China wants to foster an environment where businesses can invest with confidence.

The statements relate to the downgrading of charges against Rio Tinto (RIO.AX) executive Stern Hu, who was initially charged with stealing state secrets, but those charges have now being downgraded to theft of business secrets. Mr Krober said the Chinese authorities are aware of the negative sentiment such incidents create with foreign investors. Page 36.

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The Australian dollar yesterday remained firm despite coming under pressure from profit-taking and weaker commodity prices. The local currency has been hovering around the US92.5c mark, to close slightly higher from Monday's close at US92.59c. According to CMC foreign exchange dealer Tim Waterer, levels began to drop once the dollar reached the US93.20c profit-taking. Weaker commodity prices saw gold close at US$1098.20 an ounce. Page 41.

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Small appliance and electrical company Breville (BRG.AX) has announced a full-year earnings rise, despite tougher trading conditions. The company has upgraded its full-year earnings to A$19 million from its previous estimate of A$17.8 million. Earnings before interest, tax, depreciation and amortisation has lifted to around A$38 million, and above broker consensus estimates of A$35.2 million. Breville owns brands, including Kambrook, Ronson and Goldair. Page 41

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THE SYDNEY MORNING HERALD (www.smh.com.au)

Investment and financial group Axa Asia Pacific (AXA.AX) has rejected an A$11 billion-plus takeover bid from France-based Axa Group and AMP. Axa Asia Pacific chairman Rick Allert yesterday said the offer had undervalued the group. 'If they come back we will look at what they come back with,' Mr Allert added.

ABN Amro analyst John Heagerty says that a second offer is the most likely outcome. Page 1.

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Airline Qantas Airways' (QAN.AX) air-freight joint venture with Australia Post was barely profitable even this year due to a slump in parcel volumes. According to the carrier's corporate filings, Australian Air Express' (AAE) profit was A$119,000 for fiscal 2009, which was A$17.5 million down on the previous period. AAE chief executive Wayne Dunne yesterday said that last year's trading conditions were the most difficult since the joint venture was established in 1992. Page 3.

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Creditors of the collapsed telecommunications company One.Tel have passed a no-confidence motion in liquidator Paul Weston. The creditors have criticised Mr Weston, who was appointed by the New South Wales Supreme Court in 2003, for spending A$9 million on professional fees. Mr Weston has indicated that he would 'absolutely' like to remain in office. Page 3.

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Insurance Australia Group (IAG.AX) chairman James Strong yesterday announced that he intends to step down from his role at the insurer, and continue serving his full term as chairman of Woolworths supermarkets. Mr Strong, formerly Qantas Airways' chief executive officer, has delayed his resignation plans due to a management revamp that came after a failed takeover bid from rival QBE Insurance last year. Mike Wilkins has been chosen to succeed Mr Strong. Page 5.

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THE AGE (www.theage.com.au)

Collapsed Gold Coast property financier City Pacific's liquidator, Armstrong Wily's Andrew Wily, has obtained records that may help the company's unsecured creditors recover amounts owed. Further legal actions are likely over City Pacific's lending practices, and handling of the A$1 billion First Mortgage Fund. 'Our investigations are still ongoing,' fellow liquidator David Hurst yesterday said. B9.

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The Australian Securities Exchange (ASX) has voiced opposition over the Productivity Commission's proposed 'two strikes' policy on executive remuneration. In a submission that was publicised yesterday, the ASX warned that the proposal may give 'undue influence' to minority shareholders. The ASX proposed that the threshold for both strikes be raised from 25 percent to 50 percent of shareholder votes. B4.

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Stephen Green, banking group HSBC's (HSBA.L) chairman, has asked governments not to withdraw their economic stimulus, and supported Federal Treasurer Wayne Swan's view that early removal could risk the global recovery. Mr Green, who is currently in Australia on a short visit, said that an early economic stimulus withdrawal could prolong the recovery or result in an economic collapse. He praised government efforts to tackle the worst of the financial crisis early, and prevent the economy from slipping into a recession. B5.

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