PRESS DIGEST-Australian Business News - Nov 6

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy. THE AUSTRALIAN FINANCIAL REVIEW ([url]www.afr.com[/url]) -- Building, sugar and aluminium conglomerate CSR posted a weaker-than-expected 1 percent drop in first-half net profit, excluding significant items, to A$71.7 million. Blaming higher finance costs, the debt-burdened company said it would curb spending this year but ruled out a business restructure 'in the present economic circumstances.’ Analysts said the weak result was caused mainly by the poor performance of CSR’s recently-acquired Viridian glass business, although this was partly offset by a robust aluminium division performance. P27. -- West Australian Newspapers recorded a decline in advertising revenue during October, caused by the slump in media advertising markets. The newspaper publisher, which is 22.4 percent owned by Kerry Stokes’ Seven Network, said yesterday that ad revenue fell 7.8 percent last month, including a 12 percent drop in takings from classified ads. Chief executive Ken Steinke said 'we don’t know if October was a bellwether or an aberration...but we are still hopeful that the pre-Christmas ad market will be OK.’ Page 27. -- The Federal Government has dismissed Telstra’s calls for a guarantee that structural separation of the telecommunications group would be ruled out as part of the bidding process for the A$4.7 billion national broadband network (NBN). In a noncommittal statement, a spokesman for Communications Minister Stephen Conroy said the NBN tender 'does not mandate structural separation and I note that Telstra has publicly acknowledged that fact.’ Telstra said it would be unable to submit a 'bankable bid’ in the absence of a guarantee. P27. -- Babcock & Brown Infrastructure (BBI) yesterday suspended distributions to stakeholders. 'We consider that security holders’ interests are better served by preserving operating cash flows within the business to reduce debt,’ chairman David Hamill told the infrastructure fund’s annual meeting. The announcement, coming a day after BBI sold a half-stake in New Zealand power utility Powerco, triggered a 25 percent slide in its shareprice to A19 cents. Page 27. - - THE AUSTRALIAN ([url]www.theaustralian.news.com.au[/url]) -- Chinese state-owned group Chinalco said yesterday that its stake in Rio Tinto, which was held by collapsed investment bank Lehman Brothers, had been 'transferred to a new custodian acting on behalf of Chinalco.’ The announcement came in the wake of speculation last month that the stake had been frozen by Lehman Brothers’ liquidators after the Wall Street firm went under. Chinalco teamed up with United States aluminium group Alcoa in February to acquire a 12 percent stake in Rio Tinto’s British shares. Page 20. -- Funds manager QIC Ltd yesterday tabled a 2007-08 after-tax profit of A$4.4 million despite volatile market conditions, a A$5.6 million decline on the previous year. The dividend paid to the Queensland Government fell A$5 million to A$2.2 million. Chairman Trevor Rowe said QIC had A$82.9 billion in funds under management at June 30, up 28.5 percent on a year earlier. 'QIC remains positive about the long-term prospects for markets and the investment strategies we have in place,’ Mr Rowe said. P20. -- British-based BG Group has secured close to an 80 percent interest in coal seam gas producer Queensland Gas Company (QGC) after AGL Energy sold its 22 percent stake. AGL yesterday sold its shareholding in BG Group’s takeover target for A$1.2 billion, representing a return on investment of 260 percent in about 18 months. The deal brings BG Group close to completing its A$5.2 billion friendly acquisition of QGC. P20. -- West Australian iron ore miner Brockman Resources yesterday scrapped stage one plans at its Marillana project in the Pilbara, and will move straight to stage two. Managing director cited 'the impact of the global financial crisis on the emerging iron ore sector’ for the decision. He said Brockman had failed to finalise an agreement on rail and port infrastructure access with the Port Hedland Port Authority, state authorities and third-party infrastructure owners within a suitable timeframe for its stage one plans for Marillana. Page 20. - - THE SYDNEY MORNING HERALD ([url]www.smh.com.au[/url]) -- Childcare centre group ABC Learning Centres is set to hand over management of the company to Peter Walker, a partner at insolvency firm Ferrier Hodgson. It is understood ABC Learning’s banks will appoint McGrathNicol as receivers to try and recover as much as possible of the A$850 million they are collectively owed. ABC Learning has been brought to the verge of being placed into administration after missing four consecutive self-imposed deadlines for the release of its revised financial accounts. Page 31. -- Mirvac, the biggest housing developer in New South Wales (NSW), has downgraded its profit forecast by half and flagged a A$500 million capital raising to prop up its balance sheet. Managing director Nick Collishaw said yesterday the move was necessary in 'these uncertain and volatile markets.’ Mirvac, which in July forecast earnings of A23 cents to A25 cents per stapled security in the current financial year, slashed the guidance to A13.4 cents. The announcement came after housing approvals in NSW slumped by 26.2 percent in September. Page 33. -- BHP Billiton is preparing a detailed statement addressing objections raised by the European Commission to the diversified miner’s proposed acquisition of Rio Tinto. Observers said yesterday BHP Billiton might fail to secure the commission’s approval without the sale of Australian iron ore assets, which may include Rio Tinto’s 53 percent-owned Robe River joint venture with Japanese group Mitsui, Sumitomo Metals and Nippon Steel. A BHP Billiton-Rio Tinto combination would be the dominant global player in iron ore. Page 33. -- Wealth manager AMP has raised A$450 million through an institutional placement of shares in the first stage of a A$550 million capital raising. AMP, which placed 85 million shares at A$5.30 each, increased the offer from the A$400 million planned previously after attracting strong investor demand. The group plans to raise a further A$100 million from retail investors. Chief executive Craig Dunn said yesterday AMP was 'managing the business prudently through the current market turmoil.’ Page 34. - - THE AGE ([url]www.theage.com.au[/url]) -- The International Accounting Standards Board (IASB) has decided to permit some financial instruments to be reclassified under international standards. The changes, announced four weeks ago, allow companies with 'fair value’ accounting to change the way assets are valued. Currently, around 100 countries, including Australia, the European Union (EU) and South Africa, use or co-ordinate with these standards. But the EU has now called for further changes to valuations, making other countries nervous that the IASB will give in to Europe’s request. Page B1. -- Allco Equity Partners (AEP) has terminated a management agreement with the Allco Finance Group parent company, which went into receivership on Tuesday. The private equity firm, part of a consortium that made an unsuccessful attempt to purchase Qantas last year, plans to continue acquiring holdings in operating businesses, although it may undergo a name change. At the annual meeting in Sydney yesterday, AEP chairman Ian Tsicalas said the Allco name had 'been quite the opposite’ of 'helpful’ this year. Page B2. -- The Federal Government’s agricultural economics agency, the Australia Bureau of Agricultural and Resource Economics (ABARE), has made predictions of this season’s wheat crop that are 47 percent lower than previous estimates of only seven weeks ago. Poor rainfall in Victorian wheat-growing region is mainly to blame for the downward revision to 1.4 million tonnes. By contrast, ABARE raised its estimates for Queensland’s wheat crop by 15 percent, while New South Wales’ forecast remained unchanged. Page B3. -- Takeover target MYOB’s payment of A12.85 cents per share was approved by 98.1 percent of shares voted at the company’s annual meeting yesterday. Chairman Simon McKeon said 'it’s been a source of great pride for this board and management team to be able to say not once but twice in the year that we’re able to repatriate cash.’ Private equity group Archer Capital and HarbourVest are jointly targeting an acquisition of MYOB. Mr McKeon said his company would not be hurried into a formal decision on the takeover. Page B3. - - Keywords: DIGEST AUSTRALIA BUSINESS . Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1800; [email][email protected][/email]) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.