PRESS DIGEST-Australian Business News - Sept 8

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)

--Ann Pickard, chairman of Royal Dutch Shell (RDSa.L) (RDSb.L)'s Australian division, yesterday said she did not believe that consolidation of the company's Queensland coal seam gas assets with other liquefied natural gas (LNG) projects in the state was necessary. Ms Pickard said that although she would seek to co-operate with other LNG projects in the state, Shell was not under pressure to consolidate with other projects as it had already sold its LNG output from the project. Page 58.

--Xstrata Coal (XTA.L) chief executive Peter Freyberg yesterday called on the new Federal Government to consult with industry on developing an effective climate change policy. Mr Freyberg made the comments before two of the three independent MPs gave their support to Labor Leader Julia Gillard, creating a minority Labor government. Mr Freyberg said a cap on emissions could be counter-productive if it led to industries going offshore, creating "carbon leakage." Page 58.

--Sydney Airport's international terminal features an array of well-known brand stores, including Apple, Victoria's Secret and Burberry, following a A$500 million redevelopment. Andrew Drysdale of Mentor Aviation Services yesterday said the airport's shopping area is part of a worldwide trend, with airports "trying increasingly to be a magnet for shoppers." Income from its retailers made up 23 percent of Sydney Airport's A$853 million in sales last year. Page 60.

--Grains handler CBH Group CBH.AX yesterday cut its wheat crop estimate to a four-year low following poor rainfall in Western Australia (WA). Analysts said the reduced volumes from WA would be offset by bumper crops in South Australia, Victoria and New South Wales, but warned that rail infrastructure constraints may create export bottlenecks. East coast crops are also vulnerable to large locust numbers this year. Page 61.

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

--Business leaders yesterday called for the new Federal Government to undertake a "more sophisticated national discussion" on tax reform to help increase investment and productivity in Australia's economy. The Labor government secured the support of independent MP Rob Oakeshott partly by agreeing to a summit that will reconsider wider taxation issues and the recommendations of the Henry tax review. Page 35.

--The return of the Federal Labor government with the support of independent MPs has given telecommunications company Telstra (TLS.AX) clarity on where its future lies. The Labor government will now go ahead with the A$43 billion national broadband network (NBN), including the A$11 billion deal that the Government and the NBN Company negotiated with Telstra. The deal will see Telstra become a pure retailer, and allow chief executive David Thodey to focus on that aspect of the company. Page 35.

--The board of construction and contracting group Leighton Holdings (LEI.AX) is believed to have nominated chief operating officer David Stewart as the replacement for current chief executive Wal King. Mr King, who has led the group since 1987, had been expected to announce details of his retirement in November. However, Leighton's board is now expected to announce a timetable for Mr King's departure as soon as next week. Page 35.

--The Federal Court yesterday found that Fairfax Media (FXJ.AX) claims of copyright over headlines in The Australian Financial Review were not sustainable. Fairfax had claimed that Reed International infringed copyright laws by reproducing the newspaper's headlines as part of a business information service providing abstracts of the publication's articles. Judge Annabelle Bennett found that the use of the headlines represented "fair dealing for the purpose of reporting news." Page 37.

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

--German supermarket chain Aldi has said it will commit a further A$1 billion in new capital funding to its Australian arm as it continues an aggressive expansion strategy. The Australian arm recorded a 27 percent increase in profit in calendar 2009 to A$91.94 million. Analysts from research firm IBISWorld say Aldi has increased its share of the grocery market to between 4 and 5 percent since the company's introduction to Australia in 2001. Page B1.

--Lawyers for James Packer and Lachlan Murdoch are expected to argue that a A$244 million damages suit lodged against them comes after too long a delay and should be dismissed. The two men were directors of collapsed telecommunications group One.Tel, the liquidator of which is seeking damages due to the abandonment of a A$132 million rights issue by One.Tel shortly before the company's collapse in May 2001. Page B3.

--Jane Kittel yesterday took over as chief executive at South Australia's BankSA, part of Westpac Banking Corporation (WBC.AX). BankSA has more than 450,000 customers across the state and the Northern Territory, generating over A$200 million in profits each year. Ms Kittel, previously the head of Westpac's Pacific Island division, said her appointment demonstrated the ability of women to break into the executive ranks of the male-dominated industry. Page B3.

--Federal Treasurer Wayne Swan yesterday said the Government remained committed to the minerals resource rent tax, saying "that's a commitment that we have made and we are working through that." The tax retains the support of the three major mining companies: BHP Billiton (BHP.AX), Rio Tinto (RIO.AX) and Xstrata, although smaller companies remain opposed. There are industry concerns that the tax could be subject to further changes due to the fragility of the new minority Labor government. Page B4.

THE AGE (www.theage.com.au)

--Investment groups Milton Corporation (MLT.AX) and Choiseul Investments CHO.AX yesterday agreed to a A$2 billion merger after starting negotiations late last month. Shareholders in Choiseul will vote on the proposed scheme of arrangement in November, with the merger expected to be finalised in December. Under the proposed deal, new Milton shares would be issued to Choiseul shareholders. Page B2.

--The Victorian Government yesterday rejected a planning permit and rezoning application for a site in North Geelong, where supermarket chain Woolworths (WOW.AX) had proposed a big-box hardware store. Victorian Planning Minister Justin Madden said the rejection was based on the recommendation of an independent advisory council. Page B3.

--Investors in fish farming group Clean Seas Tuna (CSS.AX) yesterday cut the company's market value by more than A$4 million after it announced that human error had caused the death of 80 tonnes of fish. The company said errors in a hydrogen peroxide bathing process - to kill parasites on the fish - had killed 80 tonnes of farmed kingfish. Page B7.

--The Association of Superannuation Funds of Australia yesterday said it was concerned that the new Labor minority government would not be able to push through promised superannuation reform. Association chief executive Pauline Vamos said the independent MPs who have given their support to the Labor government have not said they will support all Labor policy. However, Ms Vamos said the independents' stated aim of supporting evidence-based policies was a positive for super reform. Page B15. --