Wednesday November 18, 07:57 PM
PRESS DIGEST-Australian Business News - Nov 19
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)
Gaming company Betfair yesterday started
a legal challenge to legislation in New South Wales that allows horse racing regulator Racing NSW to charge wagering operators a product fee. Betfair says the fee, 1.5 percent of total turnover, is unfair as it takes a larger proportion of the company's gross revenue than from rival Tabcorp. Racing NSW yesterday said Betfair should not receive special treatment because of a 'flawed' business model.
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The chief executive of mining company BHP Billiton (LSE: BLT.L - news) , Marius Kloppers, yesterday warned that Australia will face another skills shortage in the resources and infrastructure sector when global demand returns. Speaking at the Lowy Institute in Sydney last night, Mr Kloppers said Australia would have to improve its use of labour, through improved training and incentives for better allocation of skilled workers. Page 14.
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Grains export company AWB yesterday reported a net loss of A$250.8 million for the year to the end of September, in line with previous guidance. AWB recorded a 7.1 percent increase in revenue to A$6.69 billion. Managing director Gordon Davis yesterday acknowledged that the result was disappointing, but said the company expects to provide a before tax profit for the coming year of between A$95 million and A$115 million. Page 15.
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Coca-Cola Amatil chief executive Terry Davis yesterday defended the Australian company's expansion of its alcoholic beverage operations. Mr Davis said that integrating alcoholic and soft-drink manufacturing and distribution was appropriate in the Australian market, 'however, it has to be viewed very much on a market by market basis.' Mr Davis was responding to comments by Muhtar Kent, chief executive of United States parent company The Coca-Cola Company, who remains cautious of such integration. Page 15.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Mining company Macarthur Coal yesterday warned of a 70 percent decline in first-half profit due to a rising Australian dollar and increased demurrage charges. The miner, which last year posted a profit of A$170 million, this year expects profits of between A$30 million and A$38 million. Macarthur stated that profits could worsen if port and rail bottlenecks in Queensland's Goonyella coal chain are not fixed. Shares in the company fell A48 cents yesterday to close at A$9.70. Page 21.
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According to JPMorgan Chase analyst Ian Henderson, mining company Rio Tinto (LSE: RIO.L - news) appears less enthusiastic to complete its iron ore joint venture with BHP Billiton than it was five months ago when it agreed to the deal. Spokespeople for both companies have declined to comment on speculation that Rio is trying to wriggle out of the deal. The venture, in Western Australia's Pilbara region, is forecast to save both companies more than A$10 billion. Page 22.
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Rick Allert, chairman of AXA Asia Pacific (APH), has defended the board's decision to reject the A$11.7 billion takeover offer from AMP (Berlin: AMP.BE - news) . Mr Allert and the company's chief executive, Andy Penn, met with at least five investors in Sydney yesterday. 'The proposal was rejected because it was not in the best interest of Axa (Paris: FR0000120628 - news) 's minority shareholders as it significantly undervalued Axa,' the company said. APH shares yesterday rose A8 cents to close at A$5.92, while AMP also ended A8 cents higher at A$6.38. Page 23.
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A survey by the Australian National Retailers Association and credit card provider American Express (NYSE: AXP - news) has found that 38 percent of surveyed shoppers intend to spend less on presents this year. However, the result is an improvement from last year's survey, when 46 percent of respondents said they would be reducing Christmas spending. The survey found that 8 percent of people plan to do most of their shopping online, helped by the strength of the Australian dollar. Page 23.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
The Investment and Financial Services Association's chief executive, John Brogden, yesterday questioned the Federal Government's inquiry into the superannuation industry. Mr Brogden also questioned the integrity of inquiry chairman Jeremy Cooper, accusing him of delivering answers before all the questions have been asked. Last week, Mr Cooper rejected suggestions that the industry required only 'a tweak here or there.' Page 2.
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Taxi operations company Cabcharge held its annual meeting yesterday, with shareholders recording their displeasure with the company's remuneration policies. Around 40 percent of shareholder votes were cast against the company's remuneration report, which included a 10 percent increase in the pay received by executive chairman Reg Kermode. Mr Kermode, who last year received A$2.5 million, also raised the issue of his succession, saying that he would definitely be the company's last combined chief executive and chairman. Page 2.
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The New South Wales Treasury this week told a state parliamentary inquiry that A$120 million has been set aside to pay advisers to the Government on the privatisation of the state's power industry. Expressions of interest for the assets closed yesterday. While most advisers are being paid an hourly rate, investment banks Lazard and Credit Suisse will receive a percentage of the value of the final transaction. Page 3.
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Property Group Mirvac yesterday improved its takeover offer for Mirvac Real Estate Investment Trust, increasing the implied value of the offer from A54 cents per unit to A59.4 cents. Mirvac managing director Nick Collishaw said the proposal was highly attractive to bidders given the potential downside to the units. Independent expert Deloitte Corporate Finance had judged the initial offer as 'not fair but reasonable.'
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THE AGE (www.theage.com.au)
The latest Westpac-Melbourne Institute Leading Index indicates that Australia's annualised growth rate is trending above the average of 3.1 percent, with figures from September indicating an annualised growth rate of 5.8 percent. Bill Evans, chief economist at Westpac Banking Corporation, said the figures show the fastest turnaround in the growth rate of the leading index since the economy bounced out of recession in the mid-1970s. Page B2.
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The Victorian Employers Chamber of Commerce and Industry yesterday said its business-run sustainability program could cut Australian carbon emissions by 46 million tonnes a year if implemented nationally. The chamber says its program, 'Grow me the money,' is aimed at small and medium-sized businesses, and can help them become more sustainable as well as more profitable.
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Reserve Bank of Australia assistant governor Guy Debelle yesterday said that there were signs of life emerging from the Australian securitisation market. Residential mortgage-backed securities (RMBS) had helped non-bank lenders provide competition to Australia's major banks before the financial crisis effectively closed the market for RMBS. Mr Debelle said securitisation would continue to play a role in the financial system. Page B3.
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National Australia Bank (NAB) has acquired Hong-Kong based investment advisory firm Calibre Asset Management. The deal is believed to be worth less than A$5 million but is part of a strategy to build NAB's investment advisory and private banking business in Asia. NAB sold its Hong Kong-based MLC asset management business for A$600 million to AXA Asia Pacific Holdings three years ago. Page B7. -- Keywords: DIGEST AUSTRALIA BUSINESS Keywords: DIGEST AUSTRALIA BUSINESS Keywords: DIGEST AUSTRALIA BUSINESS
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