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)
Rail operator Aurizon signed a "binding relationship agreement" with junior resource firm Brockman Mining, in what Aurizon believes is their "first step" into the lucrative West Australian Pilbara region infrastructure and haulage market. The two companies, along with mining junior Atlas Iron, have completed a feasibility study into establishing a new multi-user rail network. Page 19.
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National Australia Bank is seeking compensation in the United States from Goldman Sachs for losses involving collateralised debt obligation securities during the global financial crisis. The US$230 million claim was filed in December, the big four bank having considered its position since the release of a United States Senate report a year earlier, which investigated the cause of the global financial crisis including questionable practices by and possible conflicts of interest within Goldman Sachs. Page 19.
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Australia's biggest wine exporter, Casella Wines, has renegotiated terms with its banks, striking a new two-year deal made possible by the improved outlook engender from the falling Australian dollar. Managing director John Casella did not increase prices in the United States to offset the high Australian dollar, noting the currency was US57 cents when the Yellow Tail brand was launched in 2001. Page 19.
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Five months after purchasing a A$875 million stake in Perth Airport at a 43 percent premium, the Future Fund may be forced to write down around A$150 million of the investment. Expert valuations suggest the Future Fund's 30 percent stake in the airport is now worth A$725 million after co-investors calculated the value of Perth Airport increased from A$2.1 billion in June 2012 to A$2.2 billion six months ago to currently be worth about A$2.5 billion. Page 21.
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Budget airline Tiger Airways Australia has undergone a rebranding exercise impacting aircraft, airport terminals and customer interactions such as its website. With new name Tigerair Australia, the carrier plans on increasing its fleet two-fold, although chief executive Rob Sharp said this number is a "guesstimate", probably low-end, since the number of new planes they acquire will depend on the market. Page 21.
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Shareholders have criticised the board of Wilson HTM after the resignation of chief executive Andrew Coppin with the possibility of Mr Coppin buying out Wilson's securities unit. Shareholder and former chief executive Neil Schafer said this is "another example" of mishandling that is likely to bleed shareholder funds. Another shareholder said it was curious that investors were not given updates for a long period before the possible buyout. Page 21.
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Wealth management firm Escala Partners now has eight advisors after two more senior UBS staff, Scott Carmichael and David O'Connell, departed yesterday for the start-up based at 90 Collins Street, Melbourne. Escala has close ties with financial services group Powerwrap, drawing on its administration platform and services, plus those of Pershing for clearing. Page 22.
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Australian Securities and Investigation Commission (ASIC) senior executive leader of deposit takers, credit and insurers, Greg Kirk, has warned new regulations may be imposed should banks return to earlier practices where they discreetly switched matured term deposits to lower rates. In the past fives years, banks have decreased the amount of term deposits discreetly switched to lower interest rates by A$6 billion, according to an ASIC report. Page 22.
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The Australian Tax Office (ATO) has commenced Federal Court proceedings in Perth against Lanco Infratech -owned miner Griffin Coal. Owing a tax debt of A$13.9 million, in March Griffin was given 21 days to respond to ATO demands for the debt to be settled. Indian energy company Lanco Infratech purchased Griffin Coal from the administrators of mining tycoon Ric Stowe's empire three years ago for A$750 million. Page 23.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Nine Entertainment Co's debt level may exceed A$1 billion ($906.85 million) following the purchase of the Adelaide and Perth WIN television stations, an increase from the current debt level of A$700 million, according to some analysts. Nine is thought to have already paid WIN A$150 million, covering the Adelaide station plus an outstanding "option" on the Perth station, which is now believed likely to cost over A$200 million. Page 17.
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China, the world's largest consumer of mineral commodities, takes a long-term view on securing supplies and will start looking to invest further in Australia over the coming six to 12 months, said Jason Chang, head of private equity resource sector specialist EMR Capital. Last time Australian equity and investment values slumped, Chinese state-owned enterprises moved on Rio Tinto and OZ Minerals and there are current signs that the Chinese government was encouraging private enterprise to acquire distressed assets, said Jonathan Li of Clayton Utz. Page 17.
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The A$15 billion ($13.60 billion) Pluto West Australian liquefied natural gas plant of Woodside Petroleum has suffered technical problems that have made it non-operational for the last 10 days, Woodside announced yesterday without divulging specifics. Production targets for this year have been adjusted down from between 88 million barrels of oil equivalent (mboe) and 94 mboe to between 85 and 89 mboe. Page 18.
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Liquefied natural gas (LNG) was a viable energy source for aircraft, with advantages that included a 20 percent drop in carbon emissions and a likely much lower long-term cost, said Graham Dorrington, an aeronautical engineer at Victoria's RMIT University attending the Australian Gas technology conference in Perth. Dr Dorrington has discussed the LNG possibility with Airbus, among others, while in Europe and noted that fuel is responsible for around 30 to 40 percent of airline costs. Page 18.
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The Mount Gordon copper project of Australian Securities Exchange-listed Aditya Birla Minerals is up for sale with price expectations around A$250 million, according to The Wall Street Journal. The project has an anticipated life of 16 years and should produce four million tonnes annually for the first nine years. Stockpiles of copper are currently elevated and copper futures low with many analysts concluding that supply is currently surpassing demand. Page 18.
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Sydney packaging company Pro-Pac is now 51.1 percent owned by Melbourne packaging billionaire Raphael Geminder, who aims to use a growth-by-acquisition strategy to turn the company into a billion dollar enterprise. Pro-Pac acquired food tray producer Eco Food Pack Australia recently and over the last year also bought flexible film printer AFP and opened an office in China. Page 19.
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Telecommunications network Vodafone Australia should become cashflow-positive next year, following two years in which negative returns reached about A$1.4 billion, said Bill Morrow, head of Vodafone in Australia. Owners Hutchison and Vodafone have recently approved a A$3.5 billion debt facility, the largest for this company in Australia to date. Page 19.
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Travel agency Flight Centre has announced its third profit guidance upgrade for the year, now predicting underlying profit before tax for 2012-13 will be in the range A$338 million to A$342 million, around 17 percent higher than last year's record result of A$290 million. Flight Centre is currently profitable in each of the 10 countries in which is operates, managing director Graham turner added. Page 19.
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Australian and New Zealand independent wealth management company AMP and China's largest insurance group by premium, China Life Insurance, are planning to launch a mutual fund in China. The partners have applied to Chinese financial regulators for approval with AMP taking a stake of up to 49 percent in the venture. Page 23.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
In May, retail sector turnover gained 0.1 percent, seasonally adjusted, below economist predictions of a 0.3 or 0.4 percent gain. Yesterday's Australian Bureau of Statistics figures also revised down April and March retail sales figures to 0.1 and 0.6 percent respectively. So far this year, retail turnover increased 2.3 percent. Consumers have been spending on overseas holidays in preference to retail, according to Gareth Aird, an economist with Commonwealth Bank of Australia. Page 25.
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THE AGE (www.theage.com.au)
Commercial counsellor at the Chinese consulate-general, Liu Yu, believes a 2012 Lowy Institute poll result which found 56 percent of Australians believed excessive Chinese investment in Australia was permitted was disproportionate to actual official figures. The Chinese proportion of inbound investment represents 1 percent, while the United States, United Kingdom and Japan provide 29 percent, 23 percent and 6 percent respectively, according to Ms Liu. Page 27.
($1 = 1.1027 Australian dollars)
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