PRESS DIGEST-Australian Business News - Sept 12

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)

Wesfarmers (WES.AX) has appointed Tony Leon, the former head of Woolworths' Dan Murphy's liquor chain, as general manager of Coles Liquor. Coles chief executive Ian McLeod said yesterday that the retailer would benefit from Mr Leon's experience and proven track record. Under Mr Leon, Dan Murphy's saw turnover surge to A$2 billion from A$100 million a decade ago. Observers expressed surprise that Mr Leon, who retired as general manager of Dan Murphy's on June 30, wasn't blocked by a no-compete clause from joining Coles. Page 51.

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United States resources group Cleveland-Cliffs has acquired the 14.81 percent of West Australian iron ore miner Portman PMM.AX that it did not already own for A$525 million. The Portman board yesterday unanimously supported Cleveland-Cliffs' offer of A$21.50 a share, a 21.5 percent premium on Portman's share price on Wednesday. Cleveland-Cliffs Asia Pacific chief executive Richard Mehan said assuming control of Portman "makes dealing with Portman cash a lot simpler and saves money in terms of administration costs." Page 51.

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Caltex Australia (CTX.AX) said yesterday that the decline of the Australian dollar in recent weeks would benefit the oil refining and marketing company in the long term. Caltex expects a lift to refining margins eventually as they are denominated in US dollars. However, managing director Des King said Caltex would take a hit in the short-term as "we have US$800 million (A$987 million) of payables out there, particularly crude we ordered with 30-day delivery." The company owns one-third of Australia's oil refining capacity. Page 52.

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Industrial services provider United Group (UGL.AX) has secured a major power engineering contract in North America. United said yesterday that, in partnership with British firm Balfour Beatty, it had won a C$700 million (A$819 million) deal to upgrade power transmission systems in the Canadian state of Alberta. United's share of the contract would come to C$280 million. "We hope to build our business in the region over time," said chief executive Richard Leupen, reiterating United's full-year profit growth forecast of 20 percent. Page 52.