PRESS DIGEST-Australian Business News - Nov 23

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)

Shareholders yesterday were less than impressed at the annual general meeting of printing group PMP Limited about management's plans to revive the business, with one investor telling the board that it should just close the company's operations for good. Chairman Ian Fraser, who said he could be "as honest as I want" after being a director at the group for nine years, savaged the board's strategy of trying to broaden into digital marketing. "To be quite honest, money was wasted  we should have probably been only focusing on modernising and reducing the cost structure," he added. Page 13.

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David Knox, chief executive of oil and gas producer Santos, yesterday was ebullient about the company's growth prospects and funding pipeline, although observers and investors are still cautious about the company's US${esc.dollar}18.5 billion liquefied natural gas venture. Mr Knox declared during an investor briefing that the company would post 6 percent annual growth forecast in production through to 2020. Santos added that the Gladstone project was scheduled to start output in 2015 but wells had been delayed due to inclement weather. Page 15.

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Investors should not support free-to-air television broadcaster Ten Network's remuneration report because it failed to satisfactorily associate executive pay with company performance over the last two years, proxy adviser CGI Glass Lewis said yesterday. "Shareholders should be deeply concerned with this disconnect and the remuneration committee's sustained failure in this area," the group said. CGI added that the A${esc.dollar}2.2 million pay awarded to Ten chief executive James Warburton was "high" and without merit. Page 15.

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Peter Campbell, chairman of Sonic Healthcare, yesterday said that the Federal Government's formal assessment of the deregulation of pathology collection facilities was badly needed and that he hoped changes in the sector would put downward pressure on rents. "The government did this to create competition, but that is rubbish  what has really happened is doctors set up collection centres in their room and made out on the rents. I would hope that market rents would apply to spaces as the outcome of this review," Mr Campbell added. Page 16.

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

Mike Smith, chief executive of Australia and New Zealand Banking Group, yesterday said Australia could lose as much as A${esc.dollar}3 trillion of opportunities in the Asian Century if it does not quickly move on productivity reform, adding that the Federal Government needed to revamp the labour and tax systems as well. "Capital is a coward, you know - it goes to the place of least resistance  we operate in a global environment, like it or not, that's the reality," Mr Smith remarked. Page 19.

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Grant Bowie, the president of the Macau arm of United States casino giant MGM Grand, is believed to have pulled out of the running to take over as chief executive of local casino operator Echo Entertainment Group. Mr Bowie was the preferred candidate due to his business history in Australia, where he spent over 15 years with Park Place Entertainment, the former operator of the Jupiters casinos in Queensland. Page 19.

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Grant O'Brien, chief executive of Woolworths, yesterday predicted that the retailing giant would deliver between 3 percent and 6 percent profit growth this financial year, following a 14.5 percent drop in earnings the year prior. "I have been pleased with the start of the 2013 financial year and our guidance remains unchanged despite the instability of consumer confidence and some uncertainty in global financial markets," he said. Page 19.

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Bob Savage, chairman of David Jones, yesterday announced his shock resignation from the luxury department store's board only a day before its annual general meeting and two years before his anticipated departure. "After careful consideration I have decided that now is an appropriate time for me to retire  I believe that I am leaving the company and the board in excellent shape," Mr Savage, who became chairman of David Jones nine years ago, said. Page 19.

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

Shareholders in retailing giant Woolworths yesterday strongly voted against a resolution that would have increased restrictions on the company's 12,000 poker machines, such as A${esc.dollar}1 betting limits and an hourly revenue limit of A${esc.dollar}120 per machine. While only 2.5 percent of votes supported the move, chairman James Strong said the "only acceptable form of gambling" to the board was "responsible gambling". "We don't want our business to be based on problem gamblers  the problem is a radical proposal put forward for one company and not for everybody else," he added. Page B1.

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Global miner Rio Tinto yesterday raised concerns that the Federal Government's reforms to the taxation system as a response to minimisation strategies used by multinational corporations like Amazon and Google could "come back to bite" if other countries followed suit. "Increasingly, governments are discovering the lack of effectiveness in the digital age of international tax concepts created for the industrial age," Assistant Treasurer David Bradbury said in a speech to the Institute of Chartered Accountants yesterday. Page B1.

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The International Monetary Fund yesterday agreed with the Australian Securities and Investments Commission that the corporate regulator needed more funding to help oversee markets and financial advisers, while stopping market collapses and hunting down criminals. The commission, observers claim, is also on the verge of becoming isolated from its foreign counterparts unless it is able to more effectively share information. The Federal Government said the global body's opinion was "tough but fair". Page B1.

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Oil and gas producer Santos yesterday declared that its financial standing was "very robust", despite analysts' concerns that the company's investment-grade credit rating could be downgraded as part of a Standard & Poor's review into its hybrid securities. Andrew Seaton, chief financial officer, was confident, saying that even the global credit ratings agency found its A${esc.dollar}1.2 billion of subordinated notes on issue were "unique". Page B3.

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THE AGE (www.theage.com.au)

John Stanhope, the former chief financial officer of telecommunications conglomerate Telstra, was yesterday announced as the surprise replacement for Australia Post chairman David Mortimer. Mr Stanhope began his working career in 1967 as a clerk at the Postmaster-General's Department, the predecessor to both Telstra (which was formerly known as Telecom Australia) and Australia Post. He later became director of finance at Telstra in 1995 and was a key figure in the telco's privatisation. Page B3.

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The managing director of Goodman Fielder, Chris Delaney, yesterday predicted that the condiments and bread manufacturer's Project Renaissance savings program would generate A${esc.dollar}100 million in yearly savings over the next three years. "We are right on time in delivering that A${esc.dollar}100 million, and we continue to be confident in our ability to deliver the full A${esc.dollar}100 million over the strategic plan," Mr Delaney said at the company's annual general meeting earlier this week. Page B3.

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The S&P/ASX 200 Index rose by 1 percent to close at 4413.1 points yesterday, with the telecommunications sector leading the way after gaining 1.8 percent and the financials and materials sectors also making ground. "In terms of impact of the sector on the overall market, the fact that the miners and the financials make up around 60 percent of the market, when both of those sectors improve pretty much the whole market does," Steven Dahlian, an analyst at broker Commonwealth Securities, said. Page B6.

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Cyril Peupion, managing director of Primary Asset Consulting, yesterday warned that it can be difficult to remain productive in the lead-up to Christmas with end-of-year deadlines and various distractions. "It's important for employees to be clear on what they want to achieve, prioritise their time accordingly and maintain focus despite daily distractions, to ensure their priorities are achieved successfully before Christmas," he said. A study two years ago found that productivity can fall by as much as 38 percent because of Christmas-related distractions. Page B9.

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