PRESS DIGEST-Australian Business News - May 20

Reuters: [2008-05-19 23:20:00]

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)

--Fairfax Media <FXJ.AX> chief executive David Kirk said yesterday the group would exceed a targeted A$45 million in cost savings and revenue from its A$2.8 billion acquisition of Rural Press last year. Following the takeover, Fairfax closed three printing operations and cut staff in some areas. "Some of the increase comes from continuous improvement programs that wouldn't have been possible without the merger," Mr Kirk said. However, he declined to put a number on the new revenue the group was able to generate. Page 18.

--A joint bid on dairy producer Dairy Farmers by Parmalat Australia <PLT.MI> and Victorian cooperative Murray Goulburn has gained clearance from the Australian Competition and Consumer Commission. The Parmalat-Murray Goulburn consortium is the third party to line up for Dairy Farmers' A$800 million-plus auction, following earlier bids by National Foods and New Zealand's Fonterra. "Given the high level of interest…the board will be methodical in its assessment of available options," Dairy Farmers chief executive Rob Gordon said yesterday. Page 18.

--B&B Infrastructure <BBI.AX>, the flagship fund of investment bank Babcock & Brown, says it is on track to successfully refinance a A$500 million loan due in August. "We are starting to see signs of the debt markets recovering, certainly in our space…[and] it's a refinanceable amount of money," the fund's chief financial officer, Jonathan Sellar, told the Macquarie Global Infrastructure Conference last week. B&B Infrastructure has about A$10 billion in debt across its asset base, with about 10 percent of this falling due in the period to June 2009. Page 19.

--Nine Network executive David Radoczy has been appointed as the first general manager of FreeView, an organisation backed by free-to-air television (TV) networks. The Seven, Nine and Ten networks, along with public broadcasters ABC and SBS, have set up FreeView to promote digital TV channels in the face of competition from pay-TV. Mr Radoczy, who is believed to have been appointed for an initial three months, will join FreeView next week. He has previously worked for the ABC, British-based pay-TV group BSkyB and BBC Enterprises. Page 21.

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

--Hutchison Telecommunications Australia's <HTX.N> 3 mobile phone business yesterday reported a full-year loss of A$285 million, an improvement on the A$759 million loss in 2006-07. The company announced that the number of subscribers had increased by 9.2 percent to 1.72 million in the four months to April 2008. Canning Fok, managing director of the group's Hong Kong-based parent, Hutchison Whampoa, predicted an operating profit for Hutchinson Australia by the end of the year. Page 19.

--According to listed private health insurer NIB Holdings, its cheapest product is attracting customers for reasons other than private health care. "People who have bought lower-cost products are more likely to have been motivated by tax considerations," managing director Mark Fitzgibbon said yesterday. He revealed that individuals in the 20-29 age group formed the bulk of the 20,000 new members NIB signed up in the second half last year. Page 21.

--Mike Connaghan, the chief executive of marketing and communications group STW has assumed the role of main decision-maker and joined the agency's board. The move follows the announcement by executive chairman Russell Tate at the company's annual general meeting yesterday to step down from an executive role and become deputy chairman. Mr Connaghan told the meeting that STW remained optimistic about achieving its revenue targets for 2008 despite the current market uncertainty. Page 21.

--Chinese zinc and tungsten group Hunan Nonferous Metals said in a bidder's statement yesterday that its takeover offer for West Australian company Abra Mining <AII.AX> was aimed at lifting its stake in the metals explorer to 70 percent from the current 17.8 percent. Hunan has made an all-cash offer for Abra. "Our offer…reinforces our commitment to assist in the development of Abra's 100 percent owned…deposit located within the Mulgul project in central Western Australian," Hunan said. Page 23.

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

--Troubled general insurer Insurance Australia Group <IAG.AX> (IAG) yesterday rejected rival QBE's <QBE.AX> A$8.7 takeover offer, stating that the suitor's third attempt still "fell short of fair value." But QBE chief executive Frank O'Halloran told the stock exchange that his company "considers its final proposal is fair and reasonable, given IAG's declining profitability in the past three years and its recent profit downgrade." According to analysts, IAG is seeking A$5 per share, which would value it at A$9.45 billion. Page 19.

--The board of St George Bank <SGB.AX> has backed Westpac Banking Corp's <WBC.AX> merger offer to create a A$66 billion entity. St George chairman John Curtis told shareholders yesterday that the scrip-based bid by Westpac, valuing the target at about A$18 billion, was more attractive than any potential rival all-cash offer as it would allow St George to retain its brand, besides being a better financial deal. Analysts said a rival offer from overseas was unlikely, but there was a strong possibility of a competing local bid from National Australia Bank. Page 19.

--West Australian ammonia producer Burrup Holdings yesterday revealed plans for a A$500 million initial public offering. The listing is expected to value Burrup founder Pankaj Oswal's 70 percent stake at up to A$1.7 billion. As part of the float, Mr Oswal will sell down his shareholding to 53 percent, while Norwegian ammonia trader Yara International will reduce its holding to 27 percent from 30 percent. Page 21.

--Poker machine group Aristocrat Leisure <ALL.AX> will pay an estimated A$150 million to A$170 million to settle a class action initiated by investors who argued the company failed to keep the market informed six years ago. If Justice Margaret Stone of the Federal Court approves the deal, it will be a record payout by an Australian company to its shareholders. Aristocrat's insurers are expected to pick up most of the settlement bill. Page 21.

THE AGE (www.theage.com.au)

--Federal Infrastructure Minister Anthony Albanese has made new appointments to the board of advisory body Infrastructure Australia, with half the members coming from the private sector. "This is the first time we've had…direct private sector involvement in a coordinated way, making recommendations to Government," Mr Albanese told Sky News yesterday. The new members include Babcock & Brown senior executive Ross Rolfe, Infrastructure Partnerships Australia chairman Mark Birrell and Sydney Water chief executive Kerry Schott. Page B1.

--Industrial services provider Spotless Group <SPT.AX> yesterday extended its unsolicited takeover offer for property maintenance group Programmed <PRG.AX> to June 13 from May 26. Spotless said it had pushed back the deadline to allow shareholders to consider Programmed's annual results, which are due later this month. Page B2.

--A Committee for Economic Development in Australia meeting in Perth heard yesterday that financial markets would not be surprised by the introduction of a national emissions trading scheme in 2010. "We're well prepared," said ABN Amro director of environmental markets Craig McBurnie. He said the use of Renewable Energy Certificates and Greenhouse Gas Abatement Certificates showed that emissions trading had already commenced. "2010 is the start of compliance but not the start of the market," Mr McBurnie said. Page B3.

--Victorian Minister for Industry and Trade Theo Theophanous last night presented the Victorian Manufacturing Hall of Fame awards. The 11 companies inducted into the Hall of Fame included five automotive component manufacturers. Mr Theophanous said the Government recognised the challenges faced by the manufacturing sector, which contributed A$29.6 billion annually to the state's economy. "The Government will shortly be delivering a comprehensive Victorian industry and manufacturing strategy," he said. Page B3. --

((Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com)) Keywords: DIGEST AUSTRALIA BUSINESS

Nintendo launches new fitness video game in U.S.

Reuters: [2008-05-19 19:21:00]

By Scott Hillis

SAN FRANCISCO, May 19 (Reuters) - Nintendo Co Ltd <7974.OS> launched its "Wii Fit" exercise game in the United States on Monday, hoping to get gamers off the couch and appeal to new audiences such as women and older people.

Nintendo is banking on "Wii Fit" to further broaden the appeal of its Wii gaming console, which has already become a smash hit due to its motion-sensing controller and simple, easy-to-learn games.

"There has been fitness software before, but with the positioning of it, the marketing might behind it and the product itself, it's the biggest health product for a video game system I've ever seen," said IDC analyst Billy Pidgeon.

"Wii Fit" is the latest major title Nintendo has launched this year, one that is aimed most clearly at a nontraditional audience of mothers and older customers who are uninterested in established franchises like "Mario" and "Pokemon."

The game, which costs $90 and comes with a shoulder-width "balance board" that senses shifts in posture, should also help Nintendo address concerns over the tendency of Wii owners to buy fewer games than owners of Microsoft Corp's <MSFT.O> Xbox 360 and Sony Corp's <6758.T> PlayStation 3.

"The secret weapon of the Wii is getting more people within the household to play. Each one of those people is going to buy fewer games than the hard-core gamer would, but it adds up," Pidgeon said.

Pidgeon and other analysts said they expect sales of "Wii Fit" to be limited only by how many units Nintendo can make, with some estimating that up to 30 percent of the nearly 10 million Wii owners in the United States will buy the product in the next few weeks.

In a sign of strong demand, the Web site of retail giant Wal-Mart <WMT.N> said it had sold out of its pre-order allocation of "Wii Fit," and Amazon.com <AMZN.O> said it was out of stock as well.

While Microsoft and Sony have focused on high-definition, ultra-realistic games, Nintendo surprised the industry with the low-cost, low-tech Wii. In April, Nintendo sold more than 700,000 Wii machines in the United States, nearly double that of the Xbox 360 and PS3 combined.

"Wii Fit is easy for anyone to try and is yet another example of how Nintendo continues to expand the world of video games to new audiences," Cammie Dunaway, executive vice president of sales and marketing for Nintendo of America, said in a statement.

"Wii Fit" offers more than 40 activities in four categories including aerobics, strength training, balance and yoga. It tracks users' Body Mass Index and weight, charting their progress and offering fitness tips.

It is the latest creation of Nintendo's legendary game designer Shigeru Miyamoto, who came up with many of the company's smash hits, from "Donkey Kong" to "Nintendogs."

Nintendo has already sold 2 million copies of "Wii Fit" in Japan and it has recently been released in Europe.

Not everyone has been enamored with the product. Video game news and reviews Web site GameSpot said the title was hamstrung by shortcomings.

"Wii Fit's included exercises do have the potential to positively impact your health, but thanks to its lack of exercise options, poor support for multiplayer, and shallow health advice, this title isn't a gaming fitness revolution," GameSpot said.

Nintendo is initially selling "Wii Fit" only at its New York store, with the product available at other retailers by Wednesday. (Editing by Phil Berlowitz) ((scott.hillis@thomsonreuters.com; +1 415 677 2505; Reuters Messaging: scott.hillis.reuters.com@reuters.net)) Keywords: NINTENDO/

Artist says Vuitton design raises Darfur awareness

Reuters: [2008-05-19 15:18:00]

(Repeats to more addresses)

By Foo Yun Chee

HAARLEM, Netherlands, May 19 (Reuters) - Danish art student Nadia Plesner, being sued by the fashion house Louis Vuitton for depicting its handbag on a T-shirt, says her design has got more people talking about the Darfur conflict than she ever thought.

Plesner, one of a group of designers who are trying to raise awareness of the violence in Sudan's Darfur region, created an image of a child victim of the conflict holding a tiny dog and a trademark patterned Louis Vuitton handbag.

"Everyone knows the image of a small starving black child. We have seen it so many times now, but it doesn't work anymore," said the 26-year-old, who is studying in Amsterdam.

Plesner has been inundated with orders for the image on T-shirts and posters since the Paris-based fashion house decided to take her to court for infringing copyright.

Louis Vuitton, part of the French luxury goods group LVMH <LVMH.PA>, has taken issue with her unauthorised use of its trademark and copyright "for commercial purposes".

"This issue is important to Louis Vuitton because it directly impacts the brand on which our company has been built and which we must protect," it said in a statement.

Plesner said the image was also aimed at highlighting the media's obsession with show business at the expense of other global issues. The dog in her image is dressed in pink, like the lap dogs often clutched by celebrities.

INJUNCTION

Louis Vuitton said a Paris court had issued an injunction on March 25 ordering Plesner to stop selling products that infringed its intellectual property rights, and that it was taking further action after she refused to comply.

Plesner is due to meet Louis Vuitton executives in Paris on May 30, and said she hoped to convince them to work with her.

"I don't want to change the bag but I need to discuss with my lawyers what can we do," she said, wrapping a T-shirt in a bag before sealing it in an envelope to mail to a client.

Plesner said she had more than 4,000 orders for either T-shirts at 35 euros ($53) a piece or posters at 13 euros.

She said profits were going to the Divest for Darfur campaign (http://www.savedarfur.org/page/content/index/ ), which seeks to exert economic pressure on the Sudanese government to cooperate with international efforts to end the violence.

"I get a lot of personal emails from people that are moved by the campaign. They feel like it has opened their eyes and they want to do something," she said.

International experts estimate some 200,000 people have died and 2.5 million have been made homeless in the west Sudanese region of Darfur since mostly non-Arab rebels took up arms, accusing the central government of neglect.

Plesner has already identified her next project, a spoof of the "Mr Men and Little Miss" series of children's characters by Roger Hargreaves.

"I have a drawing for a T-shirt called 'Little Miss Child Prostitute'. It is a little bit like the same thing -- you take something from the Western world and you twist it a bit to show that, for other children, life is very different," she said. (Editing by Kevin Liffey) ((foo.yunchee@reuters.com; tel +31 20 504 5012; Reuters Messaging: foo.yunchee.reuters.com@reuters.net)) ($1=.6411 Euro)

Keywords: DUTCH DESIGNER/

Nintendo set to launch "Wii Fit" exercise game

Reuters: [2008-05-17 00:35:00]

By Scott Hillis

SAN FRANCISCO, May 16 (Reuters) - For years, video games have been blamed for turning kids into idle layabouts who only venture off the couch to fill up on potato chips and soda.

Nintendo Co Ltd <7974.OS> now aims to shatter that image with a game that aims to get players off the couch and lead them to stretch, shake and sweat their way to a healthy life.

"Wii Fit," which arrives on U.S. store shelves on Monday, is expected to draw new customers to Nintendo's wildly popular Wii video game console.

It is forecast to be the industry's latest blockbuster game after last month's "Grand Theft Auto 4," the criminal action title that racked up $500 million in global sales in one week.

"They'll sell everything they can manufacture," said Signal Hill analyst Todd Greenwald. "It extends the life cycle of the Wii a little bit and gets people to go out and buy another game from Nintendo."

The Wii has proven to be the runaway hit of the video game industry, thanks to its easy-to-learn motion-sensing controller, simple games and low price.

U.S. consumers bought 714,000 Wiis in April, nearly double the sales of Microsoft Corp's <MSFT.O> Xbox 360 and Sony Corp's <6758.T> PlayStation 3 combined.

At the other end of the spectrum from "Grand Theft Auto 4," "Wii Fit" coaches players through more than 40 exercises that range from tightrope-walking to yoga stances to push-ups.

The $90 game comes with a shoulder-width "balance board" that senses tiny shifts in a person's posture and is used to control a cartoonish character on the TV screen.

It is shaping up to be the latest in a string of hits for the Osaka, Japan-based company, which has tapped a rich vein of previously undiscovered mass-market interest in gaming with the Wii and titles like "Wii Play."

"Wii Fit" has sold more than two million units in Japan since its launch late last year, and Nintendo says interest is "strong" in Europe, where it went on sale last month.

In its fourth fiscal quarter ended in March, Nintendo saw its profit jump 60 percent from a year earlier. The company is counting on "Wii Fit" to help drive growth this quarter.

Nintendo is banking that the United States, a country whose increasingly overweight population never met an exercise craze it didn't like, will be prime territory for "Wii Fit."

"The preorders were very strong across the market, really showing the breadth of demand for the product," Cammie Dunaway, executive vice president of sales and marketing for Nintendo of America, told Reuters.

"We're finding people ranging from core gamers excited about this as new piece of innovation, to people who have never considered a video game," Dunaway said.

The interactive nature and possibility of new games and features down the road may help "Wii Fit" avoid the fate of the innumerable health fads whose appeal fades after a few months.

"It is a perfect intersection of entertainment with health and fitness and I don't think anyone's been able to pull that off," said Geoff Keighley, host of "GameTrailers TV."

It is the latest idea to spring from the head of Shigeru Miyamoto, the legendary game creator behind Nintendo's most valuable franchises, including its "Mario" and "Zelda" titles.

Often dubbed the Walt Disney of video games, Miyamoto has a knack for crafting mega-hit games out of mundane activities such as gardening (Pikmin) and dog ownership (Nintendogs).

The seeds for "Wii Fit" were planted four years ago, before the Wii had even been developed, when Miyamoto went on a diet and started graphing his daily weight. He began thinking about a game that would let people track their own body mass.

"We couldn't decide on what the next step would be and work came to a virtual standstill," Miyamoto said in an interview on Nintendo's Web site. "Until, that is, a staff member bought two scales, and found that it was pretty good fun to step on both of them at once and try to balance on them evenly."

"I don't think Wii Fit's purpose is to make you fit. What it's actually aiming to do is make you aware of your body." (Reporting by Scott Hillis, editing by Richard Chang)

((scott.hillis@thomsonreuters.com; +1 415 677 2505; Reuters Messaging: scott.hillis.reuters.com@reuters.net)) Keywords: NINTENDO/

Keywords: NINTENDO/

Keywords: NINTENDO/

"Disco queen" Donna Summer is back after 17 years

Reuters: [2008-05-16 17:50:00]

By Michelle Nichols

NEW YORK, May 17 (Reuters) - Donna Summer was dubbed "The Queen of Disco" after a series of hit singles in the 1970s: now the singer pokes fun at that title in a new song included in her first studio album in 17 years.

After raising three daughters, Grammy-winning Summer, who will turn 60 on New Year's Eve, returned to the studio to record "Crayons," which has a song titled "The Queen is Back."

"It's just kind of poking fun at the fact that this queen image has prevailed for so long," Summer, whose hits include "Hot Stuff" and "She Works Hard for the Money," said ahead of the album's release on Tuesday.

"It's having fun with it and saying I was out of the picture for a while but she's back," said Summer, who says on an Internet page she has sold more than 130 million albums.

Summer's career was crowned with five Grammy awards including best rock female vocal performance and best dance recording. She co-wrote all 12 songs on her new album. "It's a box of crayons. Each crayon has a different stroke of color and each layer brings with it its own identity," she said. "Every song is designed to be a single."

But while Summer's album is hitting a market dominated by singers who "could be my daughters," she says she doesn't feel any competitive pressure.

"I don't compete with my own daughters, I encourage them," Summer said. "I don't think I need to restake my claim as such ... Whatever I get at this point in the game is all icing on the cake." (Editing by Alan Elsner) ((michelle.nichols@reuters.com; +1 646 223 6117; Reuters Messaging: michelle.nichols.reuters.com@reuters.net))

Keywords: MUSIC SUMMER/