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PRESS DIGEST-Australian Business News - May 16
Reuters: [2008-05-15 22:56:00]
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)
Seven Network <SEV.AX> chairman Kerry Stokes has spent more than A$40 million this week raising from 53.7 percent to 65.3 percent his stake in equipment hire company National Hire <NHR.AX>. Analysts welcomed the move, agreeing that the environment for non-residential construction spending was buoyant following announcements in this week's federal budget that at least A$20 billion will be spent nationally on roads, railways, ports and other infrastructure projects. The mining boom is also fuelling demand for equipment hire. Page 56.
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Melbourne-based Indophil Resources <IRN.AX> has rejected a A$426 million takeover bid from Xstrata <XTA.L>, arguing that it is "low ball and unrealistic". Swiss miner Xstrata denied this, saying the offer, which it wants to use as a means of increasing its interest in the Tampakan copper and gold project in the southern Philippines joint owned with Indopohil, represents fair value. Xstrata said the mine still had significant development, financing, and political risk associated with it, hence the "fair price". Page 57.
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Construction group Leighton Holdings <LEI.AX> yesterday reaffirmed forecasts for full-year earnings growth of more than 30 percent, after announcing net profit of A$375 million for the nine months to March 31. Chief executive Wal King also predicted that revenue would grow by more than 10 percent a year over the next three years, as Leighton struggles to keep pace with a surplus of work in the Middle East and prepares for a surge in government infrastructure spending in Australia. Leighton shares surged to a three-month high on the bullish outlook. Page 58.
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Adelaide Brighton <ABC.AX> has forecast full-year profit growth of nearly 10 percent as infrastructure and engineering projects fuel demand for construction materials. Chief executive Mark Chellew predicted cement demand would grow by 5 percent this year, up from previous forecasts of 3 percent. He told shareholders that demand in Queensland, Victoria and South Australia was offsetting continuing weakness in the New South Wales building market. Net profit for 2007-08 is expected to be between A$118 million and A$125 million. Page 58.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Commonwealth Bank of Australia <CBA.AX> has declined to reaffirm an earlier statement that earnings growth will match or exceed the average of its peers over the medium to short term. Deutsche Bank analyst Ross Brown said this implied CBA "no longer believes it can outperform its peer group," but a CBA spokesman said the bank would not be giving guidance after the backlash suffered by St George Bank <SGB.AX> when it downgraded its projection of 10 percent earnings-per-share growth to 8-10 percent growth. Page 21.
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Coca-Cola Amatil <CCL.AX> has forecast "high single-digit" growth in net profit this financial year, with most of the boost being provided by its premium beer business. The drinks bottler's shares rose 6 percent, or 45 cents, yesterday to A$8.40 on the news, their biggest gain in almost four months. Chief executive Terry Davis made the forecast at the company's annual general meeting, at a time of softening consumer sentiment and an unexpected 70 percent rise in taxes on pre-mixed alcoholic drinks. Page 21.
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Speculation that AMP <AMP.AX> is considering a bid for St George Bank, Australia's fifth-largest bank, mounted yesterday when AMP chief executive Craig Dunn refused to rule 'anything in or out'. AMPs banking arm is relatively small, possessing about 1 percent of the national mortgage market. Westpac Banking Corporation <WBC.AX> proposed an A$19 billion friendly takeover of St George earlier this week. Page 21.
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The China Iron & Steel Association yesterday asked domestic steel mills and iron ore traders "not to support or participate in Rio Tinto's <RIO.AX><RIO.L> spot iron ore sales activities in China." Diversified miner Rio had exercised flexibility clauses in its contracts to divert contracted iron ore sales to premium-priced spot markets, at nearly double the old contract price. Rio dismissed the threats as a negotiation tactic, with both Rio and rival BHP Billiton <BHP.AX><BLT.L> pushing for annual iron ore price rise of around 85 percent. Page 21.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Fortescue Metals Group <FMG.AX> has vowed to remain Australian-owned amid speculation the recipient of its first shipment is planning to acquire a major stake in the emerging iron ore company. A Chinese magazine reported this week that steel maker Baosteel <600019.SS> was in a "slow waltz" to take a stake in Fortescue, with United States hedge fund Harbinger Capital Partners apparently willing to sell some or all of its 16 percent stake in return for enormous profits on its initial investment. Fortescue chief executive Andrew Forrest has welcomed Chinese interest. Page 21.
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Mirvac Group has written off its indirect investment in Sydneys troubled Lane Cove Tunnel, with 2007-08 profit expected to be down A$57.5 million as a result. Shares in the property developer fell 13 cents to A$3.70 on the news, bringing their total fall since December to more than 40 percent. The announcement came after broker Merrill Lynch gave Mirvac shares a "sell" recommendation, citing concerns over the slowdown in the housing sector and the collapse of New South Wales third-largest home builder, Beechwood Homes. Page 22.
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The Australian Competition and Consumer Commission (ACCC) has won a court order forcing Korean Air <003490.KS> to hand over sensitive documents related to the competition regulator's investigation into price fixing. The Federal Court yesterday rejected Korean Air's claims it was within its rights to withhold the information given the ACCC had already started proceedings. The court is seeking documents related to the tonnages, total revenues, and total revenues attributed to fuel surcharges that KAL derived from air cargo to and from Australia. Page 23.
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THE AGE (www.theage.com.au)
Commonwealth Bank of Australia says it is assessing the positives and negatives of making a counter-bid for St George Bank, following Westpac Banking Corp's A$19 billion bid earlier this week. National Australia Bank is also looking at St George, while diversified financial group AMP has not ruled out a bid of its own. "These sorts of acquisitions are always successful based on the quality of the execution a number in the past have not been particularly successful and some have," said CBA chief executive Ralph Norris. Page B1.
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Diversified financial group AMP says it expects a lower full-year profit this year, but that conditions in equity markets will improve late in 2008 and continue improving throughout 2009. Chief executive Craig Dunn said he agreed with Australian bank chiefs that the worst of the global credit crunch ended when the United States Federal Reserve bailed out investment bank Bear Stearns, and that no more big corporate losses were expected. Mr Dunn also did not rule out a bid for St George Bank. Page B1.
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Takeover target Just Group <JST.AX> has criticised Solomon Lew's Premier Investments <PMV.AX>, arguing it lacks focus, detail and management certainty because it does not have a chief executive. Just, which owns clothing retailers including Just Jeans, Peter Alexander, Portmans and Dotti, has also attacked Premier's corporate governance, claiming it fails to comply with stock exchange Corporate Governance Council recommendations. Just also said shareholders risked being dominated by interests associated with Mr Lew. Page B2.
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Toyota Motor Corp <7203.T> said global sales of its Prius petrol-electric hybrid car had hit 1 million. It said 1.028 million Prius had been sold since it went on sale in Japan in 1997, with other Toyota hybrids taking cumulative hybrid sales to 1.46 million. Toyota said the Earths atmosphere had been spared 4.5 million tonnes of global warming gases since the models release. The Prius is sold in 40 countries and regions, and is increasing in popularity because of surging petrol prices and concerns about the environment. Page B3.
-- ((Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com)) Keywords: DIGEST AUSTRALIA BUSINESS
. . .
Chile labor leader ends hunger strike at Codelco copper
Reuters: [2008-05-15 19:26:00]
SANTIAGO, May 15 (Reuters) - The leader of subcontract workers at Chile state copper miner Codelco ended a hunger strike on Thursday after Chilean President Michelle Bachelet endorsed new labor agreements between workers and the company.
"Cristian Cuevas is desisting from the hunger strike. He is going to trust in the word of the president," a source close to the fiery labor leader told Reuters.
Bachelet, Chile's first woman president, came to power in early 2006 after an election campaign in which she lent support to the subcontractors' fight for equal pay for equal work.
She gave her word this week that Codelco would adhere to accords ending the recent the strike at three of its divisions.
The end to Cuevas' hunger strike was the strongest sign yet that workers could return to fully normal operations at Codelco, and not raise strike banners again.
Workers suspended a three-week strike on May 5 but had threatened to resume protests unless Codelco showed signs of complying with the agreements.
The sometimes violent protests were the latest in a series of strikes over the past three years that have hurt output at Codelco, the world's largest copper producer.
During the strikes in April and early May, copper prices rose to record highs on global markets.
The protests gave fodder for local and international debate on labor conditions in the mining sector and saw the Church, companies and government ministers sound off on the issue.
Workers agreed to stop the strike after accepting a government-brokered proposal that included Codelco keeping agreements it made last year to hire many subcontract workers on a permanent basis.
"Codelco is going to comply with the law," Bachelet said on Wednesday.
An associate of Cuevas said the labor leader agreed to end the strike based on Bachelet's pledge, and because workers wanted him leading their fight and not becoming infirm from the hunger strike, which started on Monday.
Codelco produces about 1.7 million tonnes of copper per year and Chile is the world's top source of copper. (Reporting by Pav Jordan; Editing by John Picinich) ((pawel.jordan@thomsonreuters.com; +562 370 4250)) Keywords: CHILE CODELCO/SUBCONTRACTORS
Egypt index tumbles, Orascom leads falls
Reuters: [2008-05-15 15:42:00]
CAIRO, May 15 (Reuters) - Egypt's main stock index posted its sharpest single-day drop in almost 23 months on Thursday as investors dumped shares of Orascom Telecom <ORTE.CA><ORTEq.L> after it said a share buyback offer was oversubscribed.
Shares of Orascom tumbled 6.43 percent to 74.50 Egyptian pounds ($13.90) and the index <.CASE30> shed 4.66 percent to 10,169.27 points.
Orascom said shareholders offered to sell more than three times the amount of shares it said it would buy back in a tender offer.
"People had extra shares they wanted to sell," said Karim Hosny, account officer at Pharos Securities in Cairo. "With these market conditions of course they were selling."
Shares of Orascom Construction Industries <OCIC.CA><OCICq.L> extended losses to a ninth consecutive session, dropping 1.54 percent to 361.05 pounds.
Orascom Construction's earnings will hit by a tax announced earlier this month on free zones, where Orascom has fertiliser operations, said Tarek Shahin, analyst at Beltone Financial.
Shares of monopoly fixed-line operator Telecom Egypt <ETEL.CA><ETELq.L> plunged 7.26 percent to 17.51 pounds after it reported its second straight decline in quarterly profit.
Telecom Egypt said its net profit fell 4.8 percent to 557 million Egyptian pounds, falling short of expectations.
"Results were way below expectations," said Teymour el-Derini, trader at Beltone Financial.
Egypt's Hermes index <.HRMS> dropped 4.30 percent to 88,102.07 points and the broader CIBC index <.CIBC> shed 4.17 percent to 503.21 points. ($1 = 5.36 Egyptian pounds) (Writing by Will Rasmussen) ((william.rasmussen@reuters.com; +20 2 2578 3290/1; Reuters Messaging: william.rasmussen.reuters.com@reuters.net))
Keywords: MARKETS EGYPT CLOSER/
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Egyptian pound forex rates <EGP=>
Top 10 movers <.AT.CA>
Stocks by sector <EG/SECTOR1>
Top 10 gainers <.NGP.CA>
Top 10 percentage gainers <.PG.CA>
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RELATED NEWS AND OTHER TOPICS
Egypt news - [EG]
Egypt diary - [EG/DIARY]
Press review - [PRESS/EG]
Active Egypt stocks - [EG-HOT]
Keywords: MARKETS EGYPT CLOSER =2
DIARY - Egypt/Sudan - May 15
Reuters: [2008-05-15 09:40:00]
This diary is updated daily. New listings or amendments are marked *. All events/times provisional and in GMT (local time is GMT +3 for Egypt, GMT +3 for Sudan).
TODAY'S EVENTS
CAIRO - News conference by Egypt's statistics agency CAPMAS to announce results of 2006 census, attended by the ministers of economic development and administrative development, 0700 GMT
CAIRO - GSM Association is holding a Mobile Money summit.
COMING EVENTS
SATURDAY, MAY 17
CAIRO - Court session in lawsuit filed by man against Egyptian academic Saad Eddin Ibrahim for $100 million in damages for "harm to Egyptian national unity".
SUNDAY, MAY 18
SHARM EL-SHEIKH - World Economic Forum meeting starts, through May 20.
*CAIRO - Arab League to hold meeting with representatives of satellite broadcasting channels to discuss mechanisms for regulating content, as per the Arab broadcast charter.
MONDAY, MAY 19
CAIRO - A coalition of 24 major Egyptian NGOs hold a press conference to announce the creation of an umbrella organisation to promote and advocate legal measures for the protection and freedom of NGOs, 1000 GMT
TUESDAY, MAY 20
CAIRO - Samih Sawiris holds a presentation on the listing of Orascom Development Holding on the Egyptian and Swiss stock exchanges, followed by a Q & A session 1300 GMT
MONDAY, MAY 26
CAIRO - Euromoney conference on Egyptian real estate.
THURSDAY, JUNE 19
CAIRO - Telecommunications Regulatory Authority deadline for bids for Egypt's second fixed-line telephone licence.
TUESDAY, JUNE 24
SHARM EL-SHEIKH - Two-day meeting of African Union experts to prepare for AU summit.
THURSDAY, JUNE 26
CAIRO - Central bank's monetary policy committee meets.
FRIDAY, JUNE 27
CAIRO - Central bank issues statement on monetary policy.
SHARM EL-SHEIKH - Two-day meeting of African Union Executive Council to prepare for AU summit.
THURSDAY, MAY 29
*CAIRO - Egypt to choose international consultants for its planned nuclear power station.
MONDAY, JUNE 30
SHARM EL-SHEIKH - Two-day African Union summit.
THURSDAY, JULY 17
ALEXANDRIA - Wikimania 2008 conference at Alexandria Library, organised by the Wikimedia Foundation, through Saturday.
THURSDAY, AUGUST 7
CAIRO - Central bank's monetary policy committee meets.
FRIDAY, AUGUST 8
CAIRO - Central bank issues statement on monetary policy.
THURSDAY, SEPTEMBER 18
CAIRO - Central bank's monetary policy committee meets.
FRIDAY, SEPTEMBER 19
CAIRO - Central bank issues statement on monetary policy.
THURSDAY, NOVEMBER 6
CAIRO - Central bank's monetary policy committee meets.
FRIDAY, NOVEMBER 7
CAIRO - Central bank issues statement on monetary policy.
THURSDAY, DECEMBER 25
CAIRO - Central bank's monetary policy committee meets.
FRIDAY, DECEMBER 26
CAIRO - Central bank issues statement on monetary policy.
NOTE-Inclusion of diary items does not necessarily mean that Reuters will file a story on the event.
Key world financial events diary [KEY/DIARY]
International political diary [POL/DIARY]
Full index of available diaries [IND/DIARY] ((Cairo newsroom +202 2 578 3290/1, fax +202 577 1133, cairo.newsroom@reuters.com))
Keywords: EGYPT DIARY
Italian Stocks - Factors to watch on May 15
Reuters: [2008-05-15 08:59:00]
MILAN, May 15 (Reuters) - The following factors could affect
Italian markets on Thursday.
Reuters has not verified the newspaper reports, and cannot
vouch for their accuracy. New items are marked with (*).
PARMALAT <PLT.MI>
More than four years after the meltdown of Italy's Parmalat
SpA, the food company is set to begin presenting its case to a
U.S. jury on Thursday accusing Citigroup Inc <C.N> of playing a
key role in its collapse.
For a story, double click on [nN14430039].
Parmalat reported an 18 percent drop in net profit due to
the higher cost of raw milk as well as higher production and
marketing expenses.
For a story, double click on [nL14597557].
* ERG SpA <ERG.MI>
Italian oil refiner ERG SpA posted a 53 percent rise in
first-quarter adjusted core profit on Thursday and said it would
invest more than 2 billion euros ($3.1 billion) under a
2008-2011 business plan, most of it on power production.
For a story, double click on [nL15847783].
* BANCA MONTE DEI PASCHI DI SIENA <BMPS.MI>
Banca Monte dei Paschi di Siena reported on Thursday that
its net profit rose 48 percent in the first quarter thanks
entirely to a large gain from the sale of a depositary bank
services unit.
For a story, double click on [nL15139393].
* PRYSMIAN <PRY.MI>
Italian cable maker Prysmian SpA forecast on Wednesday a
higher result for the year thanks to a strong order book, saying
demand for its high-voltage and underwater cables were
particularly strong.
For a story, double click on [nL14870024].
BENETTON <BNG.MI>
Italian clothing retailer Benetton turned in a 9 percent
rise in first-quarter core profit on Wednesday on slightly
higher sales, and confirmed its outlook for the year.
For a story, double click on [nL14740014].
TOD'S <TOD.MI>
Italian luxury shoe and bag maker Tod's said its
first-quarter core profit rose 8.1 percent as sales increased
and it saw "good growth" for the whole year.
For a story, double click on [nL14161643].
* ALITALIA
Giovanni Sabatini has resigned as member of the airline's
board, according to a statement late on Wednesday.
His departure leaves the board with a minimum of three
members, La Repubblica says.
Carlo Toto, chairman of the Air One airline, has yet to
reach an agreement with Bruno Ermolli, who is trying to put
together a rescue plan for Alitalia on behalf of the government,
Il Messaggero says.
A2A <A2.MI>
Italian regional utility A2A SpA posted a 2.1 percent drop
in first-quarter net profit on Wednesday and the newly merged
company forecast 2008 results no worse than in 2007.
For a story, double click on [nL144572].
* The utility is forecasting growth this year, General
Director Renato Ravanelli tells Il Sole 24 Ore in an interview.
* ACEA <ACE.MI>
Rome-based utility Acea is no longer considered part of
merger talks among northern Italian utilities, Hera SpA <HRA.MI>
Chairman Tomaso Tommasi di Vignano said on Wednesday.
For a story, double click on [nL14207507].
CAMPARI <CPRI.MI>
Italian drinks group Campari turned in a 6.8 percent rise in
first-quarter pretax profit and confirmed its mid to long-term
guidance for 5 percent organic growth, boosting its shares.
For a story, double click on [nL14860780].
DAMIANI <DMN.MI>
Upmarket Italian jeweller Damiani posted on Wednesday a 5
million euro ($7.73 million) net loss in the fourth quarter of
the fiscal year ended March 31, but its full-year net profit
rose 11 percent.
For a story, double click on [nL14251005].
The following companies report first-quarter results:
BULGARI <BULG.MI>
BANCO POPOLARE <BAPO.MI>
The following companies hold conference calls with analysts
on their first-quarter results:
BANCA MONTE DEI PASCHI DI SIENA <BMPS.MI>
ERG
A2A
For Italian market data and news, click on codes in
brackets:
20 biggest gainers (in percentage)............<.PG.MI>
20 biggest losers (in percentage).............<.PL.MI>
Mibtel index.......... <.MIBTEL>
S&P/Mib index......... <.SPMIB>
Indice Mib-30......... <.MIB30>
Midex index........... <.MIDEX>
Allstars index........ <.ALLST>
Block trades.......... <.BLK.MI>
Stories on Italy...... <IT-LEN>
For pan-European market data and news, click on codes in
brackets:
European Equities speed guide...................<EUR/EQUITY>
FTSEurofirst 300 index..............................<.FTEU3>
DJ STOXX index......................................<.STOXX>
Top 10 STOXX sectors...........................<.PGL.STOXXS>
Top 10 EUROSTOXX sectors......................<.PGL.STOXXES>
Top 10 Eurofirst 300 sectors...................<.PGL.FTEU3S>
Top 25 European pct gainers.......................<.PG.PEUR>
Top 25 European pct losers........................<.PL.PEUR>
Main stock markets:
Dow Jones...............<.DJI> Wall Street report .....[.N]
Nikkei 225.............<.N225> Tokyo report............[.T]
FTSE 100...............<.FTSE> London report...........[.L]
Xetra DAX.............<.GDAXI> Frankfurt market stories[.F]
CAC-40.................<.FCHI> Paris market stories...[.PA]
World Indices.....................................<0#.INDEX>
Reuters survey of world bourse outlook.........<EQUITYPOLL1>
Western European IPO diary..........................<WEUIPO>
European Asset Allocation........................[EUR/ASSET]
Reuters News at a Glance: Equities...............[TOP/EQE]
Main currency report:...............................[FRX/]
Keywords: ITALY MARKETS/FACTORS
Next: Spanish stocks - Factors to watch on Thursday