PRESS DIGEST-Australian Business News - May 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)

--Beverage manufacturer Coca-Cola Amatil CCA.AX (CCL.AX) has continued to lose market share in the vital supermarket segment, according to the latest Nielsen Scan Track data. In 2007 CCA held a 69.5 percent share, which slipped to 67.8 percent in 2008 and now to 64.3 percent year as at March 31. A major factor in the decrease appears to be pricing, with CCA's price per litre having risen 22.6 percent over this period, while major rival Schweppes lifted its prices only 2.8 percent. Page 13.

--Supermarket retailer Woolworths (WOW.AX)' bid to expand its organic grocery business is being scrutinised by the Australian Competition and Consumer Commission (ACCC) under creeping-acquisition laws. Woolworths plans to acquire and convert Macro Wholefoods into Thomas Dux gourmet grocery stores. As part of its assessment, the ACCC will consider if mainstream supermarkets and organic groceries should be treated separately, and whether premium groceries can be readily substituted for other products. Page 13.

--Professional services firm KPMG has teamed with management consultancy McKinsey in a bid to lead a study on the best way to implement the Federal Government's A$43 billion national broadband network (NBN). KPMG is considered by analysts to be a front-runner for the nine-month contract as it already holds an advisory role in the implementation of Tasmania's NBN, and has been involved in previous government plans for a national fibre-to-the-node network. Page 15.

--Global resources company BHP Billiton (BHP.AX) (BLT.L) (BHP) is strategically reviewing its commitment to nickel production as traditional mining methods become increasingly uncompetitive. BHP has already temporarily closed its Leinster mine in Western Australia, and permanently closed its Ravensthorpe nickel project, writing it off at a cost of US$3.7 billion. The review is being driven by the emergence of cheap nickel pig iron producers supplying the lucrative Chinese market. Page 16.

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

--The Australian Bankers Association (ABA) has called for last week's changes to employee and executive share plans to be included in two government agency remuneration reviews already underway. The Government announced in its budget last Tuesday that upfront tax would now apply to employee granted shares or options rather than when they are vested or sold. The ABA has joined many large businesses in protesting the changes and wants the involvement of the Australian Prudential Regulation Authority and the Productivity Commission. Page 19.

--Medical expenses scheme Medicare is defending accusations of anti-competitive conduct in a Federal Court case that is seeking damages of A$65 million. Technology company Thelma Pty Ltd (ICS.AX) alleges that Medicare replicated its computer system and then gave the product away for free in a move that "destroyed" the market. Medicare claims it is not bound by the Trade Practices Act because it is not a corporation acting in a free market, and therefore cannot be accused of anti-competitive conduct. Page 20.