PRESS DIGEST-Australian Business News - Sept 3

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)

United States group Leucadia National on Wednesday filed a writ of summons against mining company Fortescue Metals Group (FMG.AX) and its chief executive, Andrew Forrest. The writ accuses Mr Forrest of "misleading and deceptive conduct" as he seeks to raise further funds for Fortescue's expansion. Leucadia is seeking to protect a lucrative US$100 million subordinated note - that is expected to see Fortescue pay Leucadia US$160 million this year - from dilution. Page 43.

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Mining company Atlas Iron (AGO.AX) yesterday said it would spend A$178 million to more than double iron ore production from its north Pilbara mines in Western Australia within two years. Atlas currently produces 5 million tonnes a year from its Pardoo and Wodgina mines in the area. Managing director David Flanagan said the company would be able to fund the expansion from cash reserves. Page 43.

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Sam Walsh, chief executive of Rio Tinto's (RIO.AX) iron ore division, yesterday said he expected contract iron ore prices to fall by more than 13 percent in the last quarter of this year. Mr Walsh said the fall was a normal part of the iron ore market, and reaffirmed Rio's plans to expand iron ore production in Western Australia's Pilbara region from 220 million tonnes a year to 330 million tonnes. Page 44.

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The Australian Competition and Consumer Commission (ACCC) has called for submissions on the New South Wales Government's electricity privatisation program. The competition regulator says it is investigating whether the sale of combinations of assets in the A$8 billion process could lead to reduced competition. The ACCC will publish the findings of its review on October 28. Page 44.

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

Tony D'Aloisio, chairman of the Australian Securities and Investments Commission (ASIC), will today outline the regulator's plans for enforcing the new national credit regime. ASIC took over responsibility for the oversight of credit providers at the start of July. Mr D'Aloisio, at an American Chamber of Commerce lunch today, will speak about ASIC's plans for "smoothly transitioning the industry to the new credit regime." Page 21.

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The Federal Trade Commission in the United States is expected to announce that it will issue a "second request" to mining company BHP Billiton (BHP.AX) regarding its proposed US$38.7 billion acquisition of Potash Corporation of Saskatchewan (POT.TO). BHP believes that the deal will not raise significant competition issues, but a comprehensive review of the deal is expected due to the size of the takeover. Page 21.

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New South Wales Primary Industries Minister Steve Whan yesterday said that the state's wheat crop is expected to grow by more than 50 percent this year, with an estimated record value of A$1.8 billion. Rabobank analysts say Australia will have around 15 million tonnes from the 2010-11 wheat crop available for export. Mr Whan said that the Government had an A$18.5 million program in place to address locust plagues, predicted to be the worst in 30 years this season. Page 22.

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ISS Governance Services yesterday released its report on media company Photon Group, recommending that shareholders vote in favour of a A$103 million to A$118 million capital raising. However, the report questioned the pay package of Photon chief executive Jeremy Philips, urging shareholders to vote against a resolution that would grant Mr Philips 76.4 million shares as part of the raising. Page 23.

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

The A$30 billion Browse liquefied natural gas project being developed by Woodside Petroleum (WPL.AX) on West Australia's coast could suffer major delays due to a conflict over the compulsory seizure of land for the project. The West Australian Government yesterday said it had taken steps to compulsorily acquire the land, after the Kimberley Land Council and native title claimants were unable to agree on an indigenous land use agreement by a June deadline. Page 1.

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Grocery distribution firm Metcash (MTS.AX) yesterday held its annual meeting, with chief executive Andrew Reitzer affirming that the company expects to produce earnings-per-share growth for 2011 of between 6 and 8 percent. Mr Reitzer also said that Metcash had joined the "marketing war" between major supermarket rivals Woolworths and Coles, increasing its spending on marketing. Page 3.

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Richard Goyder, managing director of Wesfarmers (WES.AX), yesterday criticised the standard of economic debate in the recent federal election. "I do worry that we are not talking enough in Australia about productivity," he said. Mr Goyder also said that it was unlikely that a minority government would address concerns about slowing productivity growth in Australia. Page 5.

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Analysts from investment bank Credit Suisse yesterday released a report warning that Australia's largest banks will face slower profit growth unless they find new funding sources. The report claims that Australia's major banks - Commonwealth Bank of Australia (CBA.AX), Westpac Banking Corporation (WBC.AX), National Australia Bank (NAB.AX) and Australia and New Zealand Banking Group (ANZ.AX) - may soon need to rely less on lending and more on fees and trading activity to maintain their success. Page 7.

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THE AGE (www.theage.com.au)

Agricultural chemicals company Nufarm (NUF.AX) could soon face a shareholder class action, with lawyers claiming that the company has engaged in misleading and deceptive conduct. Nufarm has issued five consecutive profit downgrades over the past two years, with the latest in July prompting the company's shareprice to fall 60 percent to close yesterday at A$3.50 a share. Page B1.

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The Federal Court in Melbourne was yesterday told by the Australian Taxation Office that a Swiss-based Belgian businessman, Peter Borgas, owes A$28 million in outstanding tax assessments. The court approved the extension of a freeze order on shares in Australian companies owned by five foreign groups with links to Mr Borgas and his wife Winny. Page B1.

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Automatic teller machine retailer and operator MyATM yesterday filed a revised prospectus with the Australian Securities and Investments Commission for its proposed A$10 million float. The company's initial prospectus had not sufficiently disclosed risks and had overstated the assets of the company. MyATM plans to list on the Australian Securities Exchange on November 15. Page B3.

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Mike Hurst, chief executive of Bendigo and Adelaide Bank (BEN.AX), will travel to New York next weeks to meet major fund managers and investors at Merrill Lynch's annual conference for Australian companies. Three years ago, only around 10 percent of the bank's shares were held by institutions, but this has since risen to around 40 percent. There is renewed speculation that Bendigo and Bank of Queensland (BOQ.AX) have revived merger talks. Page B3. --