PRESS DIGEST-Australian Business News - Nov 18

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)

The proposed iron ore joint venture between mining companies BHP Billiton (BHP.AX) and Rio Tinto (RIO.AX) has been attacked by European steel makers, as the European Union considers whether to treat the proposal as a full merger. Eurofor, a lobby group representing the steel makers, says the joint venture would reduce competition, as BHP and Rio would be able to share information about iron ore supplies. Page 48.

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Television broadcasters Seven Network SEV.AX and Ten Network (TEN.AX) are believed to have negotiated advertising rate increases for next year with media agency groups, according to industry sources. Seven, whose prime time audience ratings fell by 1.8 percent this year, is thought to have gained a 2 percent to 4 percent increase, while Ten, which increased its audience by 7.8 percent, is believed to have agreed to rates 5 percent higher. Major rival Nine Network will start negotiations later this month. Page 48.

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Gary Ginsberg, vice-president of global marketing and corporate affairs at media group News Corp (NWSA.O), will leave the company next month. Mr Ginsberg was a close adviser to chief executive Rupert Murdoch as well as Peter Chernin, another close aide to Mr Murdoch who left earlier this year. The departure is part of a series of changes to the companys executive team, as speculation on Mr Murdochs eventual replacement continues to grow. Page 48.

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Mining entrepreneur Joseph Gutnick yesterday announced that his company, Legend International Holdings, had reached an agreement with Chinese phosphate fertiliser producer Wengfu. Mr Gutnick said the deal could see Wengfu buy shares in Legend to fund the development of a phosphate mine and factory in Queensland. Mr Gutnick said the mine would provide competition to dominant fertiliser company Incitec Pivot (IPL.AX). Page 49.

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THE AUSTRALIAN (www.theaustralian.news.com.au)

Craig Drummond, the newly appointed chief executive of Merrill Lynch in Australia, has set himself the goal of rebuilding the firms market share, to become one of the top three investment banks locally. Drummond, a former chief executive of rival firm Goldman Sachs JBWere, has been at the helm for the last six weeks, after the banks US parent revised and restructured its Australian business. Australias top three investment banks are currently UBS, Goldman Sachs JBWere and Macquarie Group. Page 35.

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According to a report by Deutsche Banks resources team, copper prices will fall in the first half of 2010 due to a decline in imports by China. The head of the analysis team, Paul Young, yesterday said copper will remain around the US$3 a pound level for the remainder of the year as Western economies continue to recover. We do expect that the Chinese government will continue spending in 2010, but the inventory element that supported prices in 2009 will likely be missing in 2010, said Mr Young. Page 36.

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The Australian Competition and Consumer Commission (ACCC) yesterday cleared the way for mining company BHP Billiton (BHP.AX) to acquire United Minerals UMC.AX for A$240 million. With respect to the global seaborne markets, the proposed acquisition would represent only a very small potential increase in BHP Billitons share of supply of iron ore said the competition regulator. The latest decision indicates that the ACCC will have no objections to Rio Tinto and BHPs Pilbara iron ore merger. Page 36.

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Property company Goodman Group (GMG.AX) will conduct one of the largest recent capital raisings by an unlisted vehicle in order to reduce debt. Goodman will seek A$320 million from investors to reduce debt in its Goodman Australian Industrial Fund. Chief executive Greg Goodman said yesterday that the raising will reduce the A$4.1 billion trusts gearing from 41.6 percent to 33 percent. Two cornerstone investors have committed a combine A$85 million to the raising, while Goodman will add A$79 million. Page 37.

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THE SYDNEY MORNING HERALD (www.smh.com.au)

The Australian Taxation Office (ATO) last week sought a court order freezing funds associated with the proceeds from the A$2.4 billion float of retailer Myer (MYR.AX). The tax office is thought to have decided that the ownership structure arranged by Myers former owner, private equity group TPG, was designed to avoid income tax. The ATO believes that the A$1.5 billion profit to TPG from the float is liable to the corporate tax rate of 30 percent. Page 1.

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Corporate governance advisory firm CGI Glass Lewis yesterday recommended that shareholders in taxi operations company Cabcharge vote against the companys remuneration report. CGI cited concerns about the high salary of executive chairman Reg Kermode. CGI also recommended that shareholders vote against the re-election of the companys board, currently led by Mr Kermode. Page 5.

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The financial planning industry is preparing for the release next week of a parliamentary inquiry report into the sector. The inquiry was prompted by the collapse of planning network Storm Financial earlier this year. Craig Dunn, the chief executive of financial services group AMP, yesterday defended the industry, but acknowledged that financial planners and advisers have suffered some reputational damage over the past 18 months. Page 5.

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The Flight Attendants Association of Australia yesterday warned its members that Qantas Airways (QAN.AX) may start implementing forced redundancies by the middle of next year unless there is a substantial recovery in air travel. The union believes the decision by Qantas to review the number premium class seats it offers on long-haul aircraft shows that the airline is unsure whether demand for first-class and business-class tickets will fully recover. Page 6.

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THE AGE (www.theage.com.au)

Minutes from the Reserve Bank of Australias (RBA) Melbourne Cup day meeting suggest that there is a strong possibility of another interest rates rise when the RBA board meets in December. In the minutes, released yesterday, the RBA said Australias economic conditions were better than expected at the beginning of the year. Deutsche Bank analyst David Plank said the minutes were not as upbeat as the market had hoped for, but a rise was still on the cards. Page 1.

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Mining company Perilya (PEM.AX) yesterday said it would undertake a A$55 million one-for-three rights issue at A42 cents. The move follows last weeks announcement that it would extend the life of its 100-year old Broken Hill zinc/lead/silver mine in New South Wales by ten years. Perilyas controlling shareholder, Chinas Zhongjin, agreed to underwrite up to 10 million shares in the rights issue. The companys shareprice fell A3 cents upon news of the issue. Page 4.

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Investment bank Macquarie Group (MQG.AX) will seek approval from its shareholders to overhaul remuneration for its top executives. Chairman David Clarke wants shareholders to approve a performance-based shares scheme instead of direct cash payments. As part of the overhaul shareholders will be asked to approve A$18.6 million in new shares for chief executive Nicholas Moore. Page 5. - - - -