PRESS DIGEST-Australian Business News - Sep 29

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) -- Media group PBL Media has dismissed speculation that it plans to offload assets in order to settle its A$4.2 billion debt. Chief executive Ian Law yesterday described questions about PBL Media's ability to meet its A$450 million annual interest payment on its debt as 'background noise.' Mr Law said PBL Media, which is 75 percent owned by private equity group CVC Asia Pacific and 25 percent by James Packer's Consolidated Media Holdings (CMJ.AX) , would not sell any assets 'for less than their long-term value.' Page 16. --The Australian and South African competition regulators are this week expected to rule on whether BHP Billiton's (BHP.AX) US$170 billion (A$205 billion) takeover offer for Rio Tinto (RIO.AX) breaches competition regulations. The bid is also being investigated by the European Commission, which is understood to be working closely with the Australian Competition and Consumer Commission (ACCC). The ACCC said last month that 'steel makers in Australia and overseas could face significantly higher prices for iron ore' if the merger proceeded. Page 16. --Hydro-electric scheme Snowy Hydro yesterday posted a fiscal 2008 underlying profit of A$139 million, up from A$113 million a year earlier. Revenue rose 9.7 percent to A$652 million. In keeping with a previous warning by chief executive Terry Charlton, Snowy Hydro, which is jointly owned by the Federal, Victorian and New South Wales Governments, did not pay any dividends. Observers expect Snowy Hydro, a clean power producer, to be a beneficiary of the Federal Government's renewable energy targets. Page 16. --Television (TV) programming group FremantleMedia is understood to have sought clearance from the competition regulator for buying TV production house Southern Star, a division of Fairfax Media (FXJ.AX). Southern Star chief executive Hugh Marks said yesterday that FremantleMedia was one of 'several interested parties conducting due diligence…but there is no favoured buyer.' Southern Star's profits are expected to be hit after TV show Big Brother, which accounted for 20 percent of its earnings, was axed by Ten Network. Page 17.

THE AUSTRALIAN (www.theaustralian.news.com.au) 'New economies' including India, China and Australia, will assist other countries in the current economic uncertainty by maintaining a reasonable growth rate, says secretary general of the Boao Forum for Asia, Long Yongtu. The former trade negotiator believes emerging economies will offset the global fallout from the financial crisis which began in the United States. Mr Long also supports Prime Minister Kevin Rudd's proposal to strengthen Asia-Pacific co-ordination through the creation of a new Asia-Pacific union. Page 21. --Floundering childcare group ABC Learning (ABS.AX), after missing the Australian Securities Exchange deadline requirements for the filing of its full-year accounts, has promised to release the figures tomorrow. Ernst & Young's full audit of ABC Learning's asset valuations and accounting policies is expected to lead to a restatement of earnings for previous years and write-downs for the 2007-08 year of more than A$213 million. Page 22. --Perpetual (PPT.AX) and Wesfarmers (WES.AX) are the latest companies to be targeted by share predators, with schemes under the names of Share Buying Group and Hassle Free Share Sales making unsolicited proposals to buy shares. Hassle Free has also targeted Ruralco Holdings, Woodside Petroleum and Fortescue Metals, offering prices far below the shares' market value. Perpetual company secretary Joanne Hawkins told investors yesterday they were under no compulsion to accept if they received unsolicited offers from Hassle Free. Page 23. --Funds manager Perpetual has agreed to buy Smartsuper, an administration provider for self-managed superannuation funds (SMSFs), for A$16 million. Perpetual structured products group executive Eric Wang said the acquisition, which will be part of the fund manager's SMFs and small, regulated business, would lift the funds under management in its SMSF portfolio to A$3.5 billion. Perpetual expects the acquisition to make a profit in the current financial year. Page 23. THE SYDNEY MORNING HERALD (www.smh.com.au) -- Melbourne-based Lands Kirwan Tong is set to become the first brokerage to close its operations since the Australian Securities Exchange flagged higher minimum capital requirements. 'We've taken a decision earlier, rather than being caught out,' Lands Kirwan Tong managing director Trevor Lands said yesterday. The ASX said in July that it planned to raise minimum capital requirements for clearing house participants to A$2 million from A$100,000 by the end of this year, and further to A$10 million by the end of next year. Page 17. --The competition regulator has sued Chris Corrigan, the former managing director of stevedoring company Patrick Corporation - now part of Toll Holdings (TOL.AX) - and senior executives of rival P&O for alleged anti-competitive behaviour. The Australian Competition and Consumer Commission says the two companies suddenly abandoned their intense rivalry in 2001, and that their joint venture company, Australian Amalgamated Terminals, is still contravening competition laws. The case will be heard starting in August next year. Page 17. --Recruitment companies are reporting an increase in the number of expatriates seeking employment back in Australia in the wake of a financial sector job market squeeze in New York and London. Finance recruitment firm Michael Page has reported a 27 percent rise for August in the number of Australian job applicants currently working overseas compared with the same month a year earlier. The number of United States-based applicants accessing its local employment site jumped threefold in that time. Page 18. --Advertising spending in Australia is set to decline as the effect of the global financial market crisis takes hold, according to Credit Suisse media analyst Finola Burke. In a research note late last week, Ms Burke said while overall domestic advertising spending will fall 2.4 percent next year, old media will see spending decline by almost 5 percent. She said Ten Network (TEN.AX) and James Packer's Consolidated Media Holdings would be among the stocks most affected by the slowdown. Page 19. THE AGE (www.theage.com.au) -- The Victorian Government has set back by a year the scheduled A$2 billion roll-out of smart electricity meters to 2.7 million homes. Acting Energy Minister Joe Helper will today announce that the roll-out will commence in the middle of 2009, with a target completion date of end-2013. The new meters are designed to allow consumers to better monitor their power usage and its cost, and to get updates on greenhouse gas emissions produced. Page B2. --Energy retailer and generator TRUenergy (0002.HK) has called on the Federal Government to provide incentives to encourage renewable energy investment. In its submission to the Government's emissions trading green paper, TRUenergy has pushed for a moderate emissions reduction trajectory similar to the 10 percent cut in emissions by 2020 proposed by climate change adviser Ross Garnaut. The Government has committed to launching its carbon pollution reduction scheme in 2010. Page B2. --Honey producer Capilano Honey has posted a A$7.4 million loss for the 2008 financial year, compared with a A$1.9 million profit last year. Sales declined by A$5 million to A$64 million. Chairman Trevor Morgan yesterday blamed 'unfavourable exchange rates and reduced return in the local market created by increased competition,' and higher fuel costs. Industry experts said they expect honey exports to be boosted this year because of the weaker Australian dollar. Page B2. --Television network Sky Channel, owned by gaming and wagering group Tabcorp (TAH.AX) , will be launched on the Optus 3G mobile phone network in time for the spring horseracing carnival. While the technology will not feature video, punters will be able to hear audio from racing channel ThoroughVisioN and use a mobile site offering 'odds, tips and fields,' Tabcorp said yesterday. However, customers will still need to use a telephone or the existing TAB Racing website to place bets. Sky Channel already has a similar deal with 3 Mobile. Page B2. --