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

US copper futures end down as market holds range

Reuters: [2008-05-19 20:27:00]

NEW YORK, May 19 (Reuters) - U.S. copper futures ended lower on Monday after a large build in London warehouse stocks and lingering concerns over China's near-term demand outlook slowed the market's bullish momentum from late last week, analysts said.

NOTE: For detailed report, click on [MET/L].

* Copper for July delivery <HGN8> settled down 5.10 cents at $3.7755 a lb on the COMEX metals division of the New York Mercantile Exchange. Range spanned from $3.7425 to $3.8580 -- considered an inside day as it holds inside of Friday's range of $3.7395-$3.8595.

* By 1 p.m. EDT (1700 GMT), COMEX copper volumes reached 13,280 lots. Final volumes on Friday totaled 17,102 lots.

* Open interest in the market rose 934 lots to 99,009 contracts open as of May 16.

* Copper trapped within relatively broad trading range, with a weak U.S. dollar, South American labor issues, and last week's earthquake in China running up against rising stockpiles in London and questionable demand levels.

* The number of countervailing forces will prevent a major breakout in either direction on most metals - MF Global metals analyst Edward Meir.

* London Metal Exchange (LME) copper stockpiles rose by 1,500 tonnes on Monday to 122,725 tonnes, up 13 percent during the past two weeks. Since the start of the year, LME copper stocks are down 38 percent.

* COMEX copper stocks fell by 102 short tons to 10,658 short tons on Friday.

* The key factor for the market is the lack of Chinese buying interest - David Rinehimer, director of Citi Futures Perspective in New York.

* China's imports of unwrought copper dropped 17 percent in the first four months of the year, but demand could see a pick-up in the coming months as the country rebuilds cities, factories and power networks devastated by last week's powerful earthquake. [ID:nPEK282260]

* Copper prices supported by concerns of supply tightness after subcontract workers at Codelco, Chile's state-owned copper giant, threatened to resume strikes that they had halted last week. [ID:nN16562011]

* Weekly trade data showed the net long position held by noncommercial investors in U.S. copper futures fell to 2-1/2 month lows during the week of May 13.

* Noncommercial investors were net long on 4,188 lots of copper compared with the previous week's tally of 7,194 lots, according to data from the U.S. Commodity Futures Trading Commission. [ID:nN16443865]

* LME three-month copper <MCU3> was last quoted at $8,315/8,320 a tonne, down $124 from Friday's close, when the metal rallied 1.5 percent. (Reporting by Chris Kelly; Editing by John Picinich) ((chris.kelly@thomsonreuters.com; +1 646 897 1898; Reuters Messaging: chris.kelly.reuters.com@reuters.net))

For the latest news and prices, click on the codes in brackets:

LME overview <RING>

LME Warehouse stocks <LME/STX1>

Spot gold/silver <XAU=><XAG=>

COMEX copper futures <0#HG:>

COMEX metals warehouse stocks <CMWST>-<CMWSV>

N.Y. metals hourly volumes <IZQI>

Vols/open interest <MTXM>

RELATED NEWS AND OTHER TOPICS Precious metals news [GOL] All metals news [MTL] All commodities news [C] Metals diary [MTL/DIARY] Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S> Keywords: MARKETS COPPER/COMEX

UPDATE 1-Codelco: Gaby output near 80,000 T copper in '08

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

(Updates with fresh quotes, details throughout)

By Pav Jordan

CALAMA, Chile, May 19 (Reuters) - Chile's Gaby copper mine, owned by world No. 1 copper miner Codelco, will produce around 80,000 tonnes of the metal in 2008, the firm's chief executive said on Monday.

Codelco Chief Executive Jose Pablo Arellano said during a visit to the mine that Gaby would be ramped up to full capacity of about 150,000 tonnes per year of copper in August.

"This year we will produce around or even a little more than 80,000 tonnes, given we will only be in production for half a year," he told reporters.

He said output at the $1.024 billion mine will be expanded further to 165,000 tonnes per year in a second phase.

Codelco is in an expansion phase meant to help offset a slide in output at the mining giant in recent years amid falling grades at aging mines.

The Gaby mine is currently the only greenfield expansion project at Codelco, which is in the middle of an ambitious expansion across its five divisions.

Codelco's production came in at 1.583 million tonnes in 2007, not including its stake in a joint venture mine with Freeport-McMoRan Copper & Gold Inc <FCX.N>, El Abra.

Output has been curtailed this year by a subcontractors' strike at three divisions and the Gaby start-up is about two months behind schedule.

"We expect to recover lost production," said Gaby plant supervisor Gerardo Morales.

Codelco's overall output is expected to hit the 1.7 million tonnes per year level in 2009 and 2010, without its stake in El Abra.

Codelco is also planning a major expansion at its Andina division and a conversion of its largest mine, Chuquicamata, into an underground operation from an open-pit operation.

At Radomiro Tomic, part of the Codelco Norte division together with Chuquicamata, Codelco is developing a new project to exploit sulphides. (Editing by Simon Gardner and Marguerita Choy) ((simon.gardner@thomsonreuters.com; + 562 370-4250; Reuters Messaging: simon.gardner.reuters.com@reuters.net))

Keywords: CHILE CODELCO/GABY

U.S. copper declines at open after LME stock build

Reuters: [2008-05-19 16:34:00]

NEW YORK, May 19 (Reuters) - U.S. copper futures fell at the open on Monday after a hefty influx of material into London warehouses weighed on sentiment, but the losses were limited as investors continued to calculate the impact of last week's powerful earthquake in China, analysts said.

NOTE: For detailed report, click on [MET/L].

* Copper for July delivery <HGN8> was trading down 5.65 cents at $3.77 a lb by 10:27 a.m. EDT (1427 GMT) on the COMEX metals division of the New York Mercantile Exchange. Morning range spanned $3.7425 to $3.8580.

* Futures volumes estimated at 4,349 lots by 9 a.m.

* Copper trapped within relatively broad trading range, with a weak U.S. dollar, South American labor issues, and the Chinese quake offset by rising stocks and questionable demand levels.

* The number of countervailing forces will prevent a major breakout in either direction on most metals - MF Global metals analyst Edward Meir.

* China has tapped more than 1,100 diesel generators to boost power supply in quake-hit Sichuan province. [ID:nPEK333891]

* London Metal Exchange (LME) copper stockpiles rose by 1,500 tonnes on Monday to 122,725 tonnes, up 13 percent during the past two weeks.

* Since the start of the year, LME copper stocks are down 38 percent.

* COMEX copper stocks fell by 102 short tons to 10,658 short tons on Friday.

* Copper finds support amid concerns of tighter supply after subcontract workers at Codelco, Chile's state-owned copper giant, threatened to resume strikes that they had halted last week. [ID:nN16562011]

* Weekly trade data showed the net long position held by noncommercial investors in U.S. copper futures fell to 2-1/2 month lows during the week of May 13.

* Noncommercial investors were net long on 4,188 lots of copper compared with the previous week's tally of 7,194 lots, according to data from the U.S. Commodity Futures Trading Commission. [ID:nN16443865]

* LME three-month copper <MCU3> last traded at $8,315 a tonne, down $124 from Friday's kerb close. (Reporting by Chris Kelly) ((chris.kelly@thomsonreuters.com; + 1 646 223 6042; Reuters Messaging: chris.kelly.reuters.com@reuters.net))

For the latest news and prices, click on the codes in brackets:

LME overview <RING>

LME Warehouse stocks <LME/STX1>

Spot gold/silver <XAU=><XAG=>

COMEX copper futures <0#HG:>

COMEX metals warehouse stocks <CMWST>-<CMWSV>

N.Y. metals hourly volumes <IZQI>

Vols/open interest <MTXM>

RELATED NEWS AND OTHER TOPICS Precious metals news [GOL] All metals news [MTL] All commodities news [C] Metals diary [MTL/DIARY] Ldn Bullion Mkt Assoc <LBMA01> Foreign exchange rates <FX=S> Keywords: MARKETS COPPER/COMEX

Egypt indexes slide a hair, but EFG-Hermes rises

Reuters: [2008-05-19 15:52:00]

CAIRO, May 19 (Reuters) - Egypt's two main stock indexes dipped on Monday as short-term investors took profit from Sunday's 4 percent surge, but EFG-Hermes <HRHO.CA><HRHOq.L> jumped after announcing first quarter results, traders said.

The benchmark Case 30 index <.CASE30> shed 0.5 percent to 10,506.69 points, while the Hermes index <.HRMS> lost 0.6 percent to 91,013.84. Both indexes had jumped nearly 4 percent on Sunday, ending an eight-session losing streak.

Egypt's broader CIBC index <.CIBC> gained 0.6 percent to 521.79 points.

"I don't see the panic. I see consolidation, with the market going sideways for a while," said Teymour el-Derini of Beltone Financial. "Tomorrow when the market opens, it will open up."

Government moves to eliminate tax exemptions in some free zones, raise energy prices and impose a tax on treasury bill interest earlier this month had sent stocks tumbling as foreign investors shed shares, traders said.

They said short-term investors were now taking profit from gains on Sunday, while medium-term investors including foreigners were buying by end-session. Foreign investors were net buyers by 9.7 million Egyptian pounds ($1.8 million), and accounted for 21.8 perent of the day's trade.

EFG-Hermes, Egypt's largest listed investment bank, climbed 3.3 percent to 51.50 pounds after reporting a 39 percent rise in first quarter net profit to 348.5 million pounds.

Traders said the results, which were in line with market expectations, had boosted the shares, which had hit a year low of 44 pounds on May 13, down from over 68 pounds in January.

But other market heavyweights dropped including Orascom Construction Industries <OCIC.CA><OCICq.L>, which fell 2 percent to 371.01 pounds. Commercial International Bank <COMI.CA><COMIq.L> lost 1.1 percent to 78.50 pounds.

Regional mobile operator Orascom Telecom <ORTE.CA><ORTEq.L> lost 1.4 percent to 76.30 pounds. The firm said on Monday it had successfully tested its North Korean mobile network and planned to launch services in the second half of the year. ($1 = 5.36 Egyptian pounds) (Writing by Cynthia Johnston) ((cynthia.johnston@reuters.com; +20 2 2578 3290/1; Reuters Messaging: cynthia.johnston.reuters.com@reuters.net))

Keywords: MARKETS EGYPT CLOSER/

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