PRESS DIGEST-Australian Business News - Jan 30

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)

-- Surfwear company, Quiksilver, has appointed investment bank, JPMorgan, to initiate a sale process for its ski and snowboard brand, Rossignol. Quiksilver acquired Rossignol, a French brand, in 2005, but the business has consistently underperformed ever since. The company wrote down the carrying value of Rossignol by US$166 million ($192 million) in the financial year ended October 31, 2007. Rossignol, along with Quiksilver's three other winter sports brands, represents 16 percent of its total revenue. Page 16.

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Manufacturer, GUD Holdings (GUD.AX), yesterday posted an 18 percent increase in net profit to A$17.5 million for the half-year to December 31. The company, which makes Victa lawnmowers and Sunbeam appliances, reported a 31 percent rise in earnings before interest and tax to A$38.3 million. However, managing director, Ian Campbell, warned that the possibility of a recession in the United States and rising interest rates in Australia created a more subdued outlook for the second half of this year. Page 16.

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A proposed merger between mining companies, Mineral Securities (MXX.AX) and CopperCo (CUO.AX), is set to be completed by the middle of this year. Robert Champion de Crespigny, the chairman of Mineral Securities, will take over as chairman of the merged group, which will have interests in Queensland, Europe, Asia and Africa. CopperCo managing director, Brian Rear, said yesterday that the A$530 million merger would help the company diversify beyond its "one commodity, one mine business" into platinum and gold and increase shareholder value. Page 16.

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West Australian conglomerate, Wesfarmers (WES.AX), is working to improve on-shelf availability at its Coles supermarkets. Wesfarmers, which completed its takeover of Coles Group last November, has been monitoring supplier performance and putting pressure on grocery suppliers that have been failing to deliver on time. Coles supermarkets' 9.5 percent slide in earnings to A$693.3 million last year was largely blamed on inadequate on-shelf availability. Wesfarmers shares were down A$1.37 yesterday at A$36.63. Page 16.

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

-- Troubled finance group, MFS MFS.AX, could be hit with millions of dollars worth of compensation claims linked to three New Zealand investment companies that have collapsed in recent months. Among the fixed interest debenture investments that an MFS New Zealand subsidiary, Vestar, promoted to investors were Bridgecorp, Property Finance Group and Capital + Merchant Finance, all of which have failed since July. Page 19.

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Beleaguered company, Centro Properties Group (CNP.AX), opened an Internet 'data room' yesterday as it launched its sell-off. Centro, which has seen its shareprice plummet after encountering a A$3.9 billion funding crisis late last year, is offering a 50 percent share in its A$4.8 billion Centro Australia Wholesale Fund and 45 percent of its A$1.2 billion Centro America Fund, but a sale of the entire group is also on the table. The wholesale fund is believed to have attracted bids of between A$1.8 and A$2 billion from the likes of Industry Superannuation Property Trust. Page 19.

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Iron ore miner, Mount Gibson Iron (MGX.AX), entered a trading halt before the sharemarket opened yesterday, saying it had been informed over the weekend of a 'potential transaction concerning a material shareholding.' Hong Kong-based APAC Resources is the largest shareholder in Mount Gibson with a 20 percent stake. Normally, a takeover offer is expected after the 19.9 percent threshold is crossed. Besides APAC, market observers have mentioned Oxiana Resources OXR.AX and Zinifex ZFX.AX as possible suitors of Mount Gibson. Page 20.