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)
As part of the takeover of grain and related commodities storage and logistics specialist GrainCorp by United States grains leviathan Archer Daniels Midland, farmers are campaigning to ensure GrainCorp's 280 storage sites remain open to third-party marketers. Ron Greentree, Australia's largest wheat farmer, is lobbying the Foreign Investment Review Board and Australian Competition and Consumer Commission to guarantee third-party access to the storage sites. Page 13.
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The Clem Jones Tunnel toll road will be put on the market today by receiver KordaMentha and investment bank Goldman Sachs, over two years following the collapse of previous owner Rivercity Motorway Group. Queensland Investment Corporation's Queensland Motorways is thought to have already expressed interest, and offers are also expected from local and overseas super funds and toll-road operators with an indicative price of about A$600 million. Page 13.
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Rio Tinto could receive over US$1 billion for its 60 percent stake in the Diavik gold mine in Canada. Rio is selling assets to help preserve its A- credit rating that ratings agencies have put on negative watch. Dominion Diamond Corp, the joint venture partner in the mine, recently acquired the neighboring Ekati diamond mine from BHP Billiton for US$553 million, and has pre-emptive rights over Diavik. Page 15.
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With warm weather continuing longer than usual, fashion retailers and department stores have not been selling the anticipated levels of their winter ranges. Discounting may be required to reduce inventories, which would negate the higher earnings and gross-margin gains made in the December half. "Winter in Australia is a very short window of opportunity and if it doesn't start off well, you can pretty much write it off," said Commonwealth Bank of Australia analyst Andrew McLennan. Page 15.
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On Friday Macquarie Group, which has one of the highest staff compensation ratios in the world, is anticipated to reveal reductions to its staff bonus pool when it announces full-year results. Annual salaries at Macquarie average around A$250,000 and since the global financial crisis rewards have increasingly been made with stock rather than cash. Page 15.
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Despite the recent reversal of approval for the Rio Tinto-owned Coal & Allied Hunter Valley coalmine extension, Chinese company Shenhua Watermark is confident that its greenfield project near Gunnedah will be approved. The project is on land that does not support broad acre cropping and has a thorough and rigorous 3000-plus environmental impact study, said Watermark project manager Paul Jackson. Page 16.
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Following its acquisition of a 19.84 percent holding in Homeloans Ltd, Macquarie Group is planning to supply funding to Homeloans' mortgage arm in replacement of some of the current arrangements, which include Bendigo and Adelaide Bank , ING Direct and Resimac. Macquarie was likely to withdraw funding should economic conditions change and mortgage returns reduce, warned CLSA analyst Brian Johnson. Page 17.
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The private wealth management division of Australia and New Zealand Banking Group (ANZ) is expanding with staff, such as recently hired Mark Rider from UBS Global Asset Management, joining the newly created chief investment office. Joyce Phillips, chief of ANZ's global wealth and private banking, is also aiming to take the number of advisers in branches to 700, double the current level. Page 17.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
The takeover of grain and related commodities specialist GrainCorp by United States grains leviathan Archer Daniels Midland (ADM) has come under fire from analysts with doubts over funding and financial outcomes. ADM's previous acquisitions have not generated cost savings and there was some uncertainty over ADM's financing for the deal, said JPMorgan analyst Ann Duignan. Page 17.
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After a comparative lack of action following the global financial crisis (GFC), Australia's private equity market is picking up, said Bill Ferris, Champ Private Equity's executive chairman. Deals in the range of A$200 million to A$700 should be expected, rather than the billion dollar deals prior to the GFC, with input from sovereign wealth funds and involvement from Asian relationships, Mr Ferris expanded. Page 17.
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Approval for James Packer's proposed A$350 million casino in Sri Lanka's capital Colombo has been given by the country's authorities, according to reports from the Sri Lankan business community. A casino and high-class resort complex was given the go-ahead by the ministries of economic development and finance, the Business Times of Sri Lanka wrote. Page 17.
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Commodity prices are forecast to drop over the rest of this year, according to the Macquarie Group unit Macquarie Research. Copper is predicted to fall to US$7459 a tonne this year and to US$6550 per tonne next year. Other commodities expected to reduce over the period include gold and aluminium, with platinum expected to defy the trend by rising to US$1634 a troy ounce this year and US$1838 in 2014. Page 18.
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Half-yearly profits for Australia's big four banks are expected to reach A$13.2 billion, following Commonwealth Bank of Australia's A$3.8 billion reported in February. Over the next two weeks Australia and New Zealand Banking Group should report a profit of A$3.12 billion, Westpac Banking Corporation A$3.3 billion and National Australia Bank A$2.9 billion, according to analysts, a 10 percent rise on last year. Page 19.
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Australian aerial photomap cartographer Nearmap reported a 250 percent increase in cash receipts for the March quarter to A$5.25 million, with its previous cash deficit of A$1.14 million transforming into an inflow of A$4.51 million. The company late last year changed from providing free content to a subscription-based model, servicing customers such as Western Australia's Public Transport Authority and Sydney's Hornsby Shire Council. Page 19.
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Delayed and canceled mining projects will cause a long-term fall in local engineering projects, with analysis from BIS Shrapnel forecasting a 20 percent reduction in current civil construction levels by 2016-17. "Over the past decade we have witnessed one of the biggest booms in investment in civil infrastructure this country has ever seen but now this market is turning and will be a drag on [gross domestic product]," said BIS Shrapnel's infrastructure and mining specialist Adrian Hart. Page 19.
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Henderson Global Investors, a major player in the European funds management market created via a divestment from AMP in 2003, has re-entered the Australian market with the acquisition of 33 percent of 90 West Asset Management. Over half of Henderson's shareholders are Australian, who have benefited from shares currently worth A$2.42 that were close to A$1 when the company listed in 2003. Page 19.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
As News Corporation splits into two companies with publishing assets to reside under the new News Corp and film and television assets going to 21st Century Fox, Rupert Murdoch's pay will rise 15 percent. Mr Murdoch, as executive chairman of News Corp and chairman and chief executive of 21st Century Fox, will receive US$28.3 million, up almost US$4 million.
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THE AGE (www.theage.com.au)
In vitro fertilization specialist Virtus Health, currently owned by Quadrant Private Equity, is aiming for over A$500 million in an initial public offering scheduled for May. Morgan Stanley has valued Virtus at around A$682 million while UBS estimated the company's worth at A$484 million. Page 25.
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