PRESS DIGEST-Australian Business News - May 13

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) -- West Australian-based ammonia producer Burrup Holdings has revealed plans to build a large-scale ammonium nitrate plant in the state's northeast, and revive a A$3 billion initial public offering (IPO) it deferred earlier this year. Indian billionaire Pankaj Oswal, Burrup's majority shareholder and managing director, said yesterday the IPO could be relaunched in 10 to 15 days. The float was suspended in March after it attracted tepid investor interest amid the global credit crunch and unstable equity markets. Page 16. -- Primary Health Care (PRY.AX: Quote, Profile, Research, Stock Buzz) has received proposals from parties interested in buying the consumer and pharmacy assets formerly owned by Symbion Health. Primary will offload them as agreed during its A$2.7 billion takeover of Symbion earlier this year. Sigma Pharmaceuticals (SIP.AX: Quote, Profile, Research, Stock Buzz) and retail group Metcash (MTS.AX: Quote, Profile, Research, Stock Buzz) have jointly bid for the businesses. 'We look forward to hearing the outcome,' Sigma chief executive Elmo de Alwis said yesterday. He said a successful purchase could deliver cost savings of A$15 million to the joint-venture partners. Page 17. -- Melbourne's A$3.8 billion EastLink tollway is set to open at the end of June, five months ahead of schedule. Developer ConnectEast Group said yesterday it would offer motorists a toll-free month in a bid to attract users. Chief executive John Gardiner said 'the tolling system can effectively be switched on tomorrow,' and credited the early completion to good planning, successful avoidance of industrial disputes and dry weather. Leighton Holdings (LEI.AX: Quote, Profile, Research, Stock Buzz), which constructed the motorway, will receive a bonus of A$53 million. Page 18. -- Graeme Hart's forest products group, Carter Holt Harvey, has acquired the Australian assets of United States-based timber multinational Weyerhaeuser Co. Weyerhaeuser has sawmills and distribution centres in Queensland, New South Wales, South Australia and Victoria. The purchase will give New Zealand-based Carter Holt Harvey control of about 40 percent of Australia's softwood market. The deal is subject to approval by the Foreign Investment Review Board and the competition regulator. Page 18. THE AUSTRALIAN (www.theaustralian.news.com.au) -- The Australian Competition and Consumer Commission (ACCC) will examine the proposed A$64 billion merger of Westpac Banking Corp (WBC.AX: Quote, Profile, Research, Stock Buzz) and St George Bank (SGB.AX: Quote, Profile, Research, Stock Buzz).

'We will look at it in the context of section 50 [which deals with the possible reduction of competition]...we'll examine all the markets that may be relevant to this matter,' ACCC chairman Graeme Samuel said yesterday. An analyst at Morgan Stanley said the ACCC could impose a 40 percent cap on Westpac's market-share in any state. Page 19. -- News Ltd (NWS.N: Quote, Profile, Research, Stock Buzz) executive Sandra Hook has been promoted to head the News Magazines division, which produces titles such as Vogue and Good Taste. Previously chief operating officer of the magazines arm, Ms Hook replaces former chief executive Tony Kendall, who was appointed national sales director for the News Ltd group. 'I look forward to a year of continued growth, further unleashing the power of News Ltd and exceeding the expectations of our readers and clients,' Ms Hook said yesterday. Page 21. -- Oil Search (OSH.AX: Quote, Profile, Research, Stock Buzz) has acquired a stake in an oil exploration project in Iraq's Kurdistan region. 'The region is lightly explored and contains some of the most prospective geology in the world,' managing director Peter Botten said yesterday. The licence, issued by the Kurdistan Regional Government, is for a seven-year exploration period and a 20-year production period that may be extended. The 632 square-km block in the Shakal licence area is estimated to contain about 250 million barrels of oil. Page 21. -- BlueScope Steel (BSL.AX: Quote, Profile, Research, Stock Buzz) has forecast an 83 percent rise in second-half profit to A$474 million, up from A$259 million in the previous corresponding period. The result would put the Australian-based company on track for a full-year profit of A$779 million, well ahead of market expectations. 'The strong earnings improvement...has been driven by very strong global steel prices [and] if steel prices hold, then we'll have a good start to fiscal year '09,' said chief executive Paul O'Malley. Page 14. THE SYDNEY MORNING HERALD (www.smh.com.au) The Aluminium Corporation of China, or Chinalco, doubts that the 'whole world' will consent to BHP Billiton's (BHP.AX: Quote, Profile, Research, Stock Buzz) proposed takeover of Rio Tinto (RIO.AX: Quote, Profile, Research, Stock Buzz). 'A firm that owns too many resources is not good for the world,' Chinalco president Xiao Yaqing told a Hong Kong newspaper. Earlier this year, Chinalco teamed with United States-based Alcoa to buy 9 percent of Rio and become its largest shareholder. BHP's US$147 billion (A$157 billion) bid is contingent on obtaining a 50.1 percent stake in Rio. Page 20. -- Shares in the Centro Properties group (CNP.AX: Quote, Profile, Research, Stock Buzz) slumped yesterday on news of a class action by Maurice Blackburn in the Federal Court. Litigation funder IMF Australia said it was chasing A$100 million on behalf of investors, citing discrepancies in Centro's accounts. The claim was made only 24 hours after bankers granted Centro an extension of its first debt repayments until December 15. Centro said it would 'vigorously defend' itself against the legal claim. Page 21. -- Qantas Airways (QAN.AX: Quote, Profile, Research, Stock Buzz) has hinted that its low-cost subsidiary, Jetstar, may assume its parent's remaining services to Japan. In an application to the International Air Services Commission, Qantas said it was 'almost certain' it would cut services to Japan if a code-share agreement with Japan Airlines was not renewed. It warned the emergence of low-cost airlines such as AirAsia, Tiger and Japan's Skymark was 'likely to increase pressure on Australia's market share of Japanese tourists.' Page 21. THE AGE (www.theage.com.au) -- Victorian Premier John Brumby has urged a federal review of the automotive industry to support a proposed freeze on tariffs. The Brumby government wants tariffs to remain at 10 percent, while Federal Labor has foreshadowed a 5 percent cut after 2010. Mr Brumby said yesterday that tariffs generated jobs and helped ensure the competitiveness of the Victorian industry. Former premier Steve Bracks has long supported tariff freezes, but he has promised to keep an open mind as chairman of the federal review. Page B2. -- Fortescue Metals Group (FMG.AX: Quote, Profile, Research, Stock Buzz) has begun preparations for its first commercial iron ore shipment later this week. The West Australian company has spent the last six days loading a 70,000-tonne vessel, which could be replaced immediately by a second ship to complete the commissioning. 'Assuming everything goes to plan, it should take about 30 hours to complete the loading,' said chief operating officer Graeme Rowley. He said the ships would take 12 to 14 days to reach their unnamed Chinese customer. Page B2. -- A report by the Australian Bureau of Agricultural and Resource Economics says planting genetically modified (GM) crops will boost Australia's regional economy by A$8.5 billion by 2017-18. The report said delaying the start of planting GM wheat, maize, soy beans and rice would create benefits of only A$3.9 billion by the same date. However, Gene Ethics has rejected the report's findings, saying a more evidence-based federal report in 2005 showed that no individual Australian farmers would be better off with GM crops. Page B3. -- National Australia Bank's (NAB.AX: Quote, Profile, Research, Stock Buzz) monthly business survey has found that business confidence fell four index points in April, thanks to high interest rates and slumping consumer confidence. 'This may well signal significantly weaker actual business conditions lay ahead,' the report, released yesterday, stated. It also noted increased pressure on wages and price inflation. 'The combination of large falls in sales, profits and forward orders do not bode well for near-term growth,' said NAB chief economist Alan Oster. Page B3. --