PRESS DIGEST-Australian Business News - Jan 7

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)

Members of private health insurer, MBF, are considering a A$2.41 billion takeover bid from British group, BUPA, with MBF chief executive, Eric Dodd, and chairman, John Conde, having recommended the deal. The pair will meet with MBF Council representatives in Sydney and Brisbane to further their cause, ahead of a provisional vote on February 8. The council, representing MBF's wider customer base, must approve the deal ahead of a final vote by the fund's members in April or May. Page 11.

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Outdoor advertising company, Network, has set its sights on Asia after a five-year acquisition spree in Australia, during which it spent A$45 million on 14 new businesses. Chief executive, Brendon Cook, said with the backing of Macquarie Group (MQG.AX) and London-based marketing firm, WPP, Network could step up competition with local rivals, APN News & Media (APN.AX) and Ten Network's (TEN.AX) Eye Corp. He flagged an expansion into China by the end of the year. Page 11.

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Mobile phone provider, Vodafone Australia, concedes it failed to foresee network congestion that throttled thousands of text messages over the Christmas holiday period. "We recognise it was an ongoing issue for [between] seven and eight days," a spokesman said. To prevent future problems, Vodafone had secured additional network capacity from Optus, he said. According to customer complaints, text messages to the United Kingdom, New Zealand and the United States were 'pending' for days up until last Friday. Page 11.

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New South Wales coalminer, Resource Pacific RSP.AX, has asked shareholders to reject a A$2.85-a-share buyout proposal from Xstrata on independent advice. The InterFinancial Ltd report valued the target at A$3.82 a share, and senior executives are expected to seize on this during shareholder briefings this week. Resource Pacific, which is being advised by Citigroup, has a concentrated register, with the top 20 shareholders owning 70 percent of the company. Page 12.