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)
Rio Tinto owned mining company Coal & Allied will shed 40 positions from its Mount Thorley Warkworth mine in New South Wales after the Land and Environment Court overturned approval for a mine extension. The company will appeal the decision, as it predicts a further 1300 jobs to be lost if the latest ruling proceeds. Page 15.
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Ian Pollard, chairman of Billabong International, is expected to proffer "grudging" support for Sycamore Partners' A60 cent a share takeover offer. The companies are about to extend their exclusivity arrangement as the private equity firm still requires documentation relating to the surfware retailer's future earnings before continuing takeover talks. Page 15.
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Following a copper production downgrade due to reduced commodity prices and a pit wall slip at its Prominent Hill mine, OZ Minerals has announced a pay freeze and trimmed bonuses by half as it attempts to remain profitable. Remuneration for chief executive Terry Burgess dropped from A$1.88 million to A$1.63 million, according to the miner's 2012 annual report released on Monday. Page 17.
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Chinese financial institution Qilu Bank, 20 percent owned by Commonwealth Bank of Australia (CBA), is under investigation as one of its executives is among traders and analysts alleged to be involved in a bond trading scandal. "It is not appropriate to comment on these allegations until they are investigated and the results are known," said a spokesperson for CBA. Page 19.
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Mark Bouris, chairman of Yellow Brick Road (YBR), has criticized Australia's big four banks for taking advantage of a decline in funding costs to garner huge profits. Mr Bouris stated he wants to increase competition in the home loan sector and "cut deeper into the banks' market share" as he announced that Macquarie Bank backed YBR will offer mortgage holders a lower rate if they refinance from other banks. Page 19.
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CSL is confident that the allegations of collusion over blood product prices are "baseless" after three plaintiffs in the United States instigated action against CSL, competitor Baxter and the Plasma Protein Therapeutics Association for market rigging. "We remain confident in our position and will continue to defend it vigorously," said Sharon McHale, a spokesperson for CSL. Page 22.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Reserve Bank Australia Bank board member Heather Ridout expects Australian manufacturers to face continuing headwinds and suffer further cost-reduction stress as they adjust to the high value of the Australian dollar. Investment in manufacturing dropped by 2 percent in last quarter of 2012 and has declined significantly since the end of 2011, according to figures from the Australian Bureau of Statistics. Page 19.
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Murray Goulburn said it will continue to acquire shares in rival dairy co-operative Warrnambool Cheese and Butter (WCB) until it reaches 19.9 percent of the dairy company. The company has denied a full takeover of WCB is underway, with chief executive Gary Helou labelling the buying a "strategic investment". Page 21.
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From July, budget carrier AirAsia will recommence flights between Darwin and Bali as the low-cost airline increases Australian services by 52 percent. Subsidiary AirAsia Indonesia will add an extra daily flight between Bali and Perth, taking flights to four times a day. Page 21.
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Qantas Airways is in talks with South American ally LATAM Airlines to augment the alliance, and also expects to benefit from the merger between partner American Airlines and US Airways. Simon Hickey, Qantas International chief executive, said he anticipated regulatory issues relating LATAM as negotiations continue. Page 21.
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After 11 years as managing director at ITV Studios Australia, Leonie Lowe has resigned to establish her own business. Ms Lowe will depart the television production company in September, but has given no indication of the nature of her next business venture. Page 21.
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Credit ratings agency Moody's yesterday downgraded QBE Insurance Group from A3 to Baal. In November, Standard & Poor's adjusted the insurance company's outlook from stable to negative due to its "weakened earnings, internal capital generation and debt service coverage measures". Page 21.
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Australian and Singapore dual-listed residential property specialist AVJennings was placed on a trading halt on both exchanges yesterday to enable an entitlement offer to its shareholders by which the company aims to raise A$41.2 million to supply working capital and reduce debt. Controlling shareholder SC Global will participate in the raising, according to sources. Page 21.
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After rejecting an A$2.8 billion takeover from GPT Group last year for its commercial and industrial real estate business, Australand reported yesterday a first-quarter lift in residential sales. Industry sources believe that interested takeover parties are waiting for the company's shares to decline before initiating bids acquire the commercial and industrial assets. Page 21.
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Shares in specialty pharmaceutical company Pharmaxis were put into a trading halt as the company awaits results for the latest trial of its Bronchital drug, a treatment for lung condition bronchiectasis. The company will announce the results of the international trial tomorrow and expects its shares to resume trading. Page 27.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Footware retailer Colorado will be put up for sale by majority owners, private equity firms Anchorage Capital Partners and Ice Canyon, less than two years after the company failed owing A$430 million and shedding 1000 jobs. The shareholders will attempt to offload the entire business or dispose its individual brands, with PricewaterhouseCoopers to run the sales process. Page 25.
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Deloitte Access Economics expects the Australian economy to make a soft landing as the mining boom reaches its conclusion, with interest rate reductions to increase consumer spending and lift momentum in the home building sector. The Deloitte analysis forecasts mining investment to continue longer than the corresponding estimates from the Reserve Bank of Australia. Page 25.
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Miner OZ Minerals reported yesterday a downgrade of between 8 and 10 percent in copper production from its flagship South Australian Prominent Hill asset. The company's share price plummeted to a 10-year low, as the miner now expects to produce between 82,000 and 88,000 tonnes of copper this year, lower than the 90,000 to 95,000 tonnes it had previously informed the market. Page 27.
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The Federal Government is not expected to make further taxation changes to superannuation, despite the budget deficit growing by A$7.5 billion since October, following comments by Superannuation Minister Bill Shorten. SuperRatings reported that the medium balanced fund, the most common type of superannuation fund, had declined by 0.2 percent last month due to falls in the S&P/ASX 200 Index, but overall this fund recorded gains of about 12.5 percent for the first three quarters of the year. Page 28.
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THE AGE (www.theage.com.au)
Chairman of Malaysian gaming giant Genting, K. T. Lim, arrived in Sydney last week, adding to market speculation that Asia's most powerful businessman will make a serious attempt to increase investment in Echo Entertainment. Mr Lim met with gaming authorities and senior executives at Echo about approval to increase Gentling's stake in Echo to 25 percent from its current holding of 6.2 percent. Page 22.
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