Wednesday October 28, 07:54 PM
PRESS DIGEST-Australian Business News - Oct 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)
Investment company Macquarie Media Group
yesterday announced details of a repositioning plan which will see the group cut its debt from A$1.02 billion to A$468 million and buy-out its management rights from investment bank Macquarie Group. Macquarie Media intends to raise A$294 million through a rights issue, which will be used in combination with A$323 million of cash to reduce the debt. The group will also be restructured as a single holding company and renamed in December.
Page 17.
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Gold mining company Troy Resources is to raise around A$25 million to help finance the development of its Casposo gold and silver project in Argentina. The fully underwritten 1-for-6 rights issue will be priced at A$2 a share, a 19 percent discount to yesterday's closing price of A$2.47 a share. The proposal is seen as a victory for major shareholder and director John Jones, who last month rejected a proposal, by chief executive Paul Benson and other members of the board, to fully fund the development through an institutional placement. Page 17.
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Television broadcaster Ten Network this week unveiled its program line-up for next year to media buyers and advertisers around the country, with the network hoping to consolidate this year's audience gains. Ten's night-time audience has risen by around 8 percent this year, driven by the success of programs such as MasterChef and Talkin' 'Bout Your Generation. Chief executive Grant Blackley also confirmed that Ten intends to launch a third channel within the next 12 months. Page 18.
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Clothing retailer Country Road yesterday held its annual general meeting in Melbourne, announcing strong results for the first 17 weeks of the current financial year. However, chief executive Ian Moir said retailers are facing high levels of uncertainty in the lead-up to this Christmas due to rates of discounting, the threat of interest rate increases and the end of the Federal Government's fiscal stimulus program. Mr Moir said Country Road will continue to focus on cost control and inventory management over the coming year. Page 18.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Shareholders of financial company Suncorp have called for the resignation of chairman John Story, as performance issues continue to plague the company. Mr Story told investors at yesterday's annual general meeting that the company needed a stable board and a sense of cautious optimism for the coming year. The company has been hit by extreme weather events and the global financial crisis, which have caused a 90 percent drop in profits over the last two years. Page 22.
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Media and gaming businessman James Packer appears to have ended his feud with broadcaster Seven Network, as two of Seven's executives joined his media company, Consolidated Media . Seven Network directors Peter Gammell and Ryan Stokes yesterday attended their first annual general meeting as directors. Seven acquired a 19.9 percent stake in Consolidated in July, which has been seen as a strategic move by the network, since Mr Packer's company holds 25 percent in pay television provider Foxtel and 50 percent of the Fox Sports pay television channel. Page 23.
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After two days of the bookbuild process for retailer Myer's initial public offering, institutional applications have soared before the offer closes this afternoon. The indicative range that Myer has priced its share is between A$3.90 and A$4.90, but the final price will be determined during the bookbuild once all investors pay the clearance price. UBS (Virt-X: UBSN.VX - news) analysts believe Myer should be priced at the lower end of the offer, a discount to its upmarket rival David Jones. Page 26.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
National Australia Bank (NAB) slipped over the last six months to report a headline loss of A$75 million for the period after one-off charges and bad debts dampened the outlook for its business. Chief executive Cameron Clyne was less optimistic about whether the banking sector might have seen the worst of the lending losses, stating that it could be another 12 months before the bad-debt cycle peaked. NAB reported full cash earnings of A$3.84 billion, down 1.9 percent from the previous year. Page 1.
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For the first time in Australia, YouTube will allow advertisers to buy search keywords for the videos posted on its portal. Mitsubishi (MBC.IL - news) and Holden will become the first major local advertisers to use the keyword technology, which has been running for a year in the United States (US). The service allows ads to be matched with user's keywords, then advertisers pay per click for the times their video is viewed. YouTube has made no comments regarding its success in the US, however, 6 million Australians use YouTube each month. Page 5.
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Qantas Airways (Berlin: QAN.BE - news) ' low-cost carrier Jetstar wants to revamp the fees it charges for bookings made by credit cards. Chief executive Bruce Buchanan said there should be a distinction between the fees paid. Mastercard (NYSE: MA - news) , Visa, American Express (NYSE: AXP - news) and Diners all have different administration costs, and this should be reflected in what the airline charges its customers, Mr Buchanan added. Yesterday Jetstar launched its new branded Mastercard, which will be exempt from the credit card fee when customers book online. Page 6.
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THE AGE (www.theage.com.au)
Mining company Rio Tinto (LSE: RIO.L - news) and China's Chinalco are believed to be holding early-stage discussions on a joint investment in Mongolia's Oyu Tolgoi copper and gold resource. Last month Rio, Canada's Ivanhoe Mines (IVN.TO - news) and the Mongolian Government signed an investment agreement regarding the project. However, analysts say Chinese investment is both inevitable and necessary, given Oyu Tolgoi's proximity to the Chinese border and the fact that China is expected to be the major buyer of the project's output. Page B1.
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Utility asset owner Babcock & Brown Power (BBP) yesterday said talks with its banking syndicate aimed at restructuring A$3 billion of debt have been delayed and an agreement will not be finalised as hoped before the company's general meeting next month. The delay has been caused by a disagreement over gas prices in a contract involving BBP's Alinta business, which could force BBP to reassess whether Alinta is a going concern. BBP says it remains confident of restructuring the debt. Page B5.
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The Reserve Bank of Australia (RBA) yesterday released figures showing that Australian banks have dramatically cut their use of the Federal Government's wholesale funding guarantee since the start of the year. Figures show 75 percent of new long-term borrowing over the past month was raised without the use of the guarantee. RBA deputy governor Malcolm Edey said that the guarantee does not yet have an official expiry date, but noted that most similar schemes overseas would expire by the end of the year. Page B5.
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Building materials company Boral (Berlin: HQK.BE - news) yesterday held its annual general meeting, reporting a 42 percent drop in net profit to A$142 million for the year to the end of June. Boral expects the current calendar year to represent the bottom of the housing cycle in both Australia and the United States. Chief executive Rod Pearse said 'while the future looks bright for Boral, the 2010 financial year will be another tough year.' Mr Pearse said uncertain market conditions meant the company could not yet provide guidance for the year. Page B8. -- Keywords: DIGEST AUSTRALIA BUSINESS Keywords: DIGEST AUSTRALIA BUSINESS Keywords: DIGEST AUSTRALIA BUSINESS
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