PRESS DIGEST-Australian Business News - May 25

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)

--The planned demerger of paints and explosives maker Orica (ORI.AX) is unlikely to happen for at least another year, according to chief executive Graeme Liebelt. The company intends to separate its mining explosives business from its consumer products operation in the belief that investors will be more attracted to the specialised companies. "There is a group of investors, particularly international investors, who are attracted to a pure-play mining services company,' Mr Liebelt said yesterday. Page 13.

--Iron-ore pricing negotiations between mining companies Rio Tinto (RIO.AX) and BHP Billiton (BHP.AX) and steel-makers Nippon Steel (5401.T) and Posco 005460.KS, are believed to be about to conclude. Industry sources have interpreted the May 14 move by Korea's Posco to cut domestic steel prices as an indication that it has clarity on input costs for raw materials. Analysts say this year's annual discussions have been more cumbersome because of the global economic crisis and the downwards pressure this has brought upon the price of iron-ore. Page 13.

--The chairman of mining company Rio Tinto will meet with major Australian shareholders this week to discuss the proposed sale of a 15 percent stake to Chinese company Chinalco. Jan du Plessis has been overseas for the past few weeks visiting international shareholders where he has already encountered resistance to the proposal, mainly due to the significant change in global sharemarkets since the deal was first proposed. Mr du Plessis is also expected to meet with the Federal Government whicho must also approve the deal on a foreign ownership basis. Page 13.

--Financial statements recently filed with the Australian Securities and Investments Commission have revealed a A$11.2 million decrease in profit for food manufacturer Nestle Australia (NESN.VX). The major cause of the slump was an increase in taxation, with the company paying A$65.4 million in the calendar year 2008, compared to A$42.2 million in 2007. A note released by the company's directors says the results "were in line with management's expectations." Page 14.

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

--Australian wool exporters are concerned that an increasing reliance on the Chinese market could impact future prices. Over the past seven years, China's share of Australian wool exports has risen to 68 percent from 39 percent, with the second-largest customer, Italy, taking only 7 percent. Chris Wilcox, executive director of the National Council of Wool Selling Brokers, says "my worry about such dominant position is the Australian wool industry's exposure to sovereign or countrywide risks." Page 19.

--The Australian Competition and Consumer Commission has warned of an increase in the concentration of power among Australia's Big Four banks. The concern follows the release of data from market research firm Brandmanagement which shows that of the A$26.6 billion growth in mortgage books by the Big Four banks in the March quarter, A$22.7 billion was taken by the recently merged institutions of the Commonwealth Bank of Australia/BankWest (CBA.AX) and Westpac Banking Corp/St George. Page 19 (WBC.AX).