Maintenance. We are currently updating the site. Please check back shortly
Members login
  • TrustLaw
  • Members Portal
Subscribe

PRESS DIGEST-Australian Business News - Dec 21

Source: Thomson Reuters Foundation - Thu, 20 Dec 2012 08:18 PM
Author: Reuters
med-dev
Tweet Recommend Google + LinkedIn Bookmark Email Print
Leave us a comment

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)

Biotechnology company CSL will see chief executive Brian McNamee step down after 23 years, with Paul Perreault take his place in 2013. The incoming chief executive has over 30 years experience in the sector and is the current president of CSL Behring, which runs CSL's blood plasma international manufacturing and commercial operations. Mr Perreault joined CSL in 2004 when the company acquired Aventis Behring. He will fulfil his new position from the United States and has no plans to relocate to Australia. Page 39.

- - - -

Mark Steinert, the incoming chief executive of Stockland , plans a "deep analysis" of his new charge before he starts ringing changes. The US${esc.dollar}8 billion company was forced to make multiple downgrades this year due to a waning property sector recovery. Mr Steinert commenced his career as a former research analyst at investment giant UBS in Sydney and then rose to global head of research at the bank's New York headquarters. Mr Steinert will begin in his new post from early January. Page 39.

- - - -

Don Taylor, chairman of GrainCorp, told investors at its annual general meeting yesterday that it was a busy year for the grain handler after acquiring two businesses, delivering record earnings and receiving takeover offers. GrainCorp has knocked back two bids from United States-based food processor and commodities trader Archer Daniels Midland (ADM) valuing the company at A${esc.dollar}2.8 billion, which Mr Taylor believes undervalued the worth of the company. "We have an open line of communication with ADM but they have made no indications as to their intentions," added Mr Taylor. Page 44.

- - - -

The Australian Securities Exchange (ASX) has marked its territory, after announcing that it has signed agreements with seven banks, believed to include Australian and New Zealand Banking Group <ANZ.AX, Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corporation and Macquarie Bank relating to the clearing of interest rate derivatives. The news comes as London-based LCH.Clearnet Group seeks a licence to operate in Australia to compete against the ASX. Australian banks use the so called "over-the-counter- interest rate swaps" to manage cash flow. Page 44.

- - - -

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

The Australian Competition and Consumer Commission (ACCC) has blocked the proposed merger between classifieds company TradingPost, the failing arm of telecommunications company Telstra, and Carsales.com. "The proposed acquisition would have reduced the choice for advertisers by removing a significant competitor with an offer is attractive to dealers and private advertisers, differing in important ways from the Carsales' offer," ACCC chairman Rod Sims said. The decision leaves Telstra without a buyer for the business, which it acquired for A${esc.dollar}636 million and now is valued at a fraction of the cost. Page 18.

- - - -

Seven Group Holdings is understood to have sold some of its investments in Agricultural Bank of China in the past two months, estimated to be valued at US${esc.dollar}250 million, to strengthen its bottom line and gain significant profits. The conglomerate previously indicated that in 2013 it would begin selling its listed portfolio and reducing its stake in companies such as Telstra and the Ag Bank. Seven Group Holdings is 33 percent owned by Seven West Media, owner of top rating television Seven Network. Page 18.

- - - -

After receiving conditional approval from the Australian Competition and Consumer Commission (ACCC) yesterday, Qantas Airways and Emirates Airlines are confident that the regulator will extend their landmark alliance beyond five years. "If things turn out as we expect then there should be no problem for extending it," said ACCC chairman Rod Sims. The final approval for the alliance is expect to be granted in March, which will see Qantas and Emirates co-ordinate ticket pricing, schedules and capacity. Page 18.

- - - -

Miner, Metallurgical Corporation of China (MMC) has reportedly announced the closure of its US${esc.dollar}3 billion Cape Lambert iron ore project in Western Australia due to rising costs. MMC acquired the Cape Lambert project from Perth businessman Tony Sage's company for A${esc.dollar}400 million in 2008. According to Zhang Jiabin, analyst at Umetal.com, the company was not allowed to import Chinese workers to work there, the cost of electricity, water and railway construction seems to be the endless black hole." MCC will keep an skeleton staff in order to maintain its Australian mining licence. Page 18.

- - - -

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

Due to rising production cost and slipping copper prices, OZ Minerals is expected to announce a decline in full-year earnings and the decline may continue into 2013. The declaration is a response to a near 10 percent drop in the copper and gold miner's share price on Wednesday. OZ Minerals said copper production may fall by 10 percent over the next 12 months, but expects production to remain at above 90,000 tonnes per year. Page B2.

- - - -

Retailer Myer has begun leasing small spaces across Victoria and New South Wales for the festive season to woo customers. The department store has established pop-up stores at Southern Cross Railway Station in Melbourne and five other outlets at centres in Doncaster, Fountain Gate, Bondi Junction, Parramatta and Carindale.. The move, according to a Myer spokesperson, was an opportunity to provide existing and new customers with a convenient and quick way to shop. Property agents expect the trend of pop-up stores to rise and become entrenched into the retailing landscape. Page B4.

- - - -

According to the latest "Buy vs. Rent" report from researchers RP Data, buying a home is cheaper than renting in 48 of Sydney's 967 suburbs. The survey added that it was also cheaper to buy in six of Melbourne's 668 suburbs, and 58 areas in Brisbane. Tim Lawless, researcher at RP Data, said "if you start factoring in your buying costs, stamp duty conveyancing, pest and building inspections it starts to make the equation look much less appealing". Page B4.

- - - -

According to the latest figures released by the Australian Bureau of Statistics, foreign investor interest in state government bonds has declined, although some of the nation's major banks have negated the fall as they prepare to comply with new regulations. The report showed that the overseas ownership of "semi-government bonds" declined from 33.8 percent to 36.2 percent in the June quarter. In the September quarter foreign ownership declined by A${esc.dollar}1.1 billion according to the latest figures. Page B8.

- - - -

THE AGE (www.theage.com.au)

Federal Court Justice Peter Jacobson yesterday ruled that the scheme of arrangement for Nine Entertainment Co, which some senior lenders legally challenged because they were not involved in the negotiations, was the "only opportunity to the company to repay the senior debt". The free-to-air television broadcaster has A${esc.dollar}2.24 billion of senior debt due to expire in early February, with total liabilities of A${esc.dollar}3.4 billion. Under the deal, senior lenders in Nine will receive 95.5 percent of equity and will get A${esc.dollar}573 million from A${esc.dollar}700 million of fresh debt to be raised after the company's restructure. Page B2.

- - - -

According to Elders chairman John Ballard, the agribusiness's sale of its Futuris automotive interiors unit early next will help the company to recover from its high debt and aid its ailing share price. "As we enter what appears to be one of the most favourable markets for Australian agricultural business for decades. Elders shareholders face inferior returns as the current ownership structure mitigates against the market value of the core business being reflected in the share price," Mr Ballard told investors yesterday. Page B7.

- - - -

Brendan Pearson, government relations executive at Peabody Energy, the largest coal firm in the United States, told the Australian Institute of Energy's conference in Sydney last month that predictions about the use of coal had been wrong in the past. The International Energy Agency earlier this week predicted coal would overtake oil by 2017 as the world's largest source of energy, but Mr Pearson noted that the same body forecast coal use to only grow by less than 1 percent a year over a decade in 2000-01. The use of coal over the period was 56 percent. Page B8.

- - - -

Thomas Pink, a high-end shirt and tie retailer, has opened its first Pink store in Australia in Melbourne's Collins Street, with plans for new stores in Sydney and Brisbane. The brand is owned by fashion label Louis Vuitton, and its shirts have been available locally through retailer David Jones for the last two years. The Melbourne store will also sell some womenswear, casual offerings and a made-to-measure service. Page B11.

- - - -

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of the Thomson Reuters Foundation. For more information see our Acceptable Use Policy.

comments powered by Disqus
TOPICAL CONTENT
Topical content
LATEST SLIDESHOW

Latest slideshow

See allSee all
FEATURED JOBS
Featured jobs