PRESS DIGEST-Australian Business News - Aug 28

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)

Toll-road operator Transurban Group (TCL.AX) has reported a 2007-08 net loss of A$142.8 million, improving on its A$152.4 million loss a year earlier. Chief executive Chris Lynch said the company, set to pay a final dividend of A29 cents a share tomorrow, would adopt a policy of paying debt-free distributions. He also flagged cost-cutting measures including moving out of unnecessary premium office real estate in Melbourne and Sydney. "We're trying to preserve as much of the cash…for our shareholders as we can," Mr Lynch said. Page 17.

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Melbourne toll-road group ConnectEast (CEU.AX) said yesterday that it was in a financially strong position after trimming its full-year net loss to A$9.3 million, compared with a A$66.4 million loss in fiscal 2007. Managing director John Gardiner said the company would do more to convince motorists to use its new EastLink motorway after traffic data for the first four weeks showed a decline in cars using the toll-road. "Our challenge is to get the message across that it is…far cheaper to use than you realise," Mr Gardiner said. Page 17.

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Diversified mining group Rio Tinto (RIO.AX) has again defended its US$38 billion acquisition of North American aluminium producer Alcan after the division's half-year performance was described by analysts as a very weak. Earnings from the aluminium business dropped by US$561 million to US$995 million in the June half despite higher prices compared with the previous corresponding period. Rio Tinto chief financial officer Guy Elliott said yesterday that the company was committed to grow the [aluminium] business. Page 17.

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British-based oil and gas company BG Group (BG.L) has advanced a step in its A$13.8 billion takeover bid for Origin Energy (ORG.AX), winning the approval of the New Zealand (NZ) Government. The clearance was required as Origin has a 51.4 percent stake in NZ firm Contact Energy (CEN.NZ). BG Group, which unveiled its offer for Origin in April, now awaits the decisions of the Foreign Investment Review Board in Australia and the Australian competition regulator. Meanwhile, Origin is due to announce its annual profit result today. Page 18.