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 West Media is initiating a A${esc.dollar}450 million capital raising to reduce its debt, with the company suffering from a softening market for advertising. Chief executive Don Voelte is expected to announce the raising today, with backing already secured from the media conglomerate's major shareholders, including Ausbil Dexia, Kohlberg Kravis Roberts & Co and Mr Stokes' Seven Group Holdings. Page 15.
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Investment consultants Mercer will present today a report showing that Australian managed funds have delivered their worst level of return since the height of the global financial crisis in 2008-09, with the median fund losing approximately 7 percent of its value. "I think we are in a period of heightened volatility and low sharemarket returns. I think we will see consolidation," Michael McCorry from fund manager BlackRock said. Page 15.
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Mike Cowin, portfolio manager in Northcape Capital, has declared that the investment fund was prepared to keep its holding in garage-door manufacturer Alesco until it had greater clarity relating to a takeover bid from paint maker DuluxGroup. The latter has submitted a A${esc.dollar}2 a share, or A${esc.dollar}188 million, offer, but Mr Cowin said Dulux had to "either increase the offer or you declare it final and everybody moves on that's where we're at". Page 17.
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Department store David Jones is preparing to overhaul perceptions of substandard customer service by redeploying 200 permanent staff to new one-on-one "style advisers" roles that will see them accompany customers around the store, advising on sizes and styles and helping them pay for multiple items in a single transaction. "The concept we're dealing with is the development of a tiered service delivery model that differentiates our store," Cate Daniels from David Jones said. Page 17.
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THE AUSTRALIAN (www.theaustralian.com.au)
Pauline Vamos, chief executive of the Association of Superannuation Funds of Australia lobby group, yesterday warned that the threat of sovereign risk could hamper proposals by state governments to privatise state assets. "Sovereign risk is something that is always an issue with these sorts of assets that means you need bipartisan support and agreed long-term planning," Ms Vamos added. Page 21.
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Mark Vaile, chairman of Whitehaven Coal, is preparing to canvass the views of the 51.7 percent of shareholders that have not approved mining magnate Nathan Tinkler's A${esc.dollar}5.3 billion takeover of the independent coal producer. "While 48.3 percent of shareholders have indicated they will roll their equity into the new entity, it is the balance that will ultimately make the decision of whether to take the offer or not," said Mr Vaile. Page 21.
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Sandy Oatley, one of the members of the family that established the Rosemount wine label that became one of Australia's most successful exports during the 1980s and 1990s, yesterday said that the family missed working on the vineyard after selling their stake in Rosemount in 2005. "My whole life revolved around the seasons and picking the grapes I missed it. It was in our blood," he said. Mr Oatley's new wine label, Robert Oatley Vineyards, currently sells more than 320,000 cases annually worldwide. Page 21.
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Greg Medcraft, chairman of the Australian Securities and Investments Commission, yesterday confirmed that the corporate regulator had developed three propositions to reform corporate takeover laws, although it was the role of federal Treasury to recommend any changes. One of the proposals is a tightening of the creep provisions for shareholders to reduce surreptitious takeovers, while the others focus on schemes of arrangement and the disclosure of holdings. Page 23.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Marcus Lee and Matthew Joyce, the two Australian property executives being tried on bribery in a Dubai court, have had their charges sent back to prosecutors for further investigation. While the decision by the Ruler's Court extends their stay in custody, currently over for more than three years, observers said it also raises the possibility that the case may be thrown out. The move was triggered by a ruling in the Victorian Supreme Court in a related case that the evidence was probably fabricated. Page B1.
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OilCareers.com, the largest website for job advertisements in the energy sector, revealed that demand for senior designers, project managers, engineers and geologists has reached record levels. According to the Federal Government, around 90,000 more workers are needed in the Australian oil and gas industry to maintain and construct seven new liquefied natural gas ventures worth more than A${esc.dollar}290 billion over the next four years. Observers say the shortfall in younger employees is leading companies to coax older workers out of retirement with substantial remuneration. Page B1.
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Nick Vincent, general manager of The Coffee Club franchise, yesterday said that the benefits of expanding the caf? chain into Egypt vastly outweigh the risks as political events unfold. "We certainly talked about it, but having the master franchise on the ground has given us confidence that most of this unrest is fairly isolated," Mr Vincent said about Egypt. According to the latest quarterly report from researchers Business Monitor International, coffee sales in Egypt have grown by more than 20 percent annually for most of the last four years. Page B6.
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Michael Schaper, acting chairman of the Australian Competition and Consumer Commission (ACCC), has warned that the competition regulator was concerned about franchise owners making overstated claims about the incomes from their businesses. "The ACCC is investigating whether a number of franchisors in this industry engaged in misleading or deceptive conduct by making claims about potential earnings," Mr Schaper said. Page B7.
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THE AGE (www.theage.com.au)
Craig James, senior analyst at broker Commonwealth Securities, yesterday said that the Australian market had not rebounded as strongly as overseas markets, having already reacted positively to economic growth figures from China but could continue to gain ground. "We're already expecting a 33-point gain at the start of trade and I think it's reasonable to expect that we do need to catch up half to three-quarters of 1 percent," Mr James added. Page B2.
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Analysts yesterday believed that mining magnate Nathan Tinkler's A${esc.dollar}5.2 billion cash offer for Whitehaven Coal, filed three hours before the close of trade last Friday, was designed to provide additional time to secure extra partners, or to secure more funding to reorganise the shareholder structure. "The new detail, which improves confidence in a possible transaction, was confirmation that these banks are at least still open to offer the debt finance up to a point," Tom Sartor, analyst at financial services group RBS Morgan, said. Page B3.
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The Straits Trading Company property group from Singapore has acquired the Rendezvous, a 100-year-old hotel in Melbourne's Flinders Street, for A${esc.dollar}61 million. The building was formerly owned by the Challenger Life Nominees No 2 property fund. "We are continuing to strengthen and expand our footprint in the Asia-Pacific region, which is enjoying growth in travel and tourism," Eric Teng, chief executive of property and hospitality at Straits Trading, said. Page B9.
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The Forte in Melbourne's Docklands is Australia's first high-rise apartment tower to be constructed with cross-laminated timber instead of steel and will be the tallest high-rise building that uses the manufactured material. "It's a story of 'jumbo ply'. The glued, crossed pattern is very stable," Philipp Zumbrunnen, project director for British developer Eurban, said of the European-developed material. Page B9.
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