PRESS DIGEST-Australian Business News - July 7

THE SYDNEY MORNING HERALD (www.smh.com.au)

Mining magnate Clive Palmer is confident his A$5 billion resources float will defy a weaker sharemarket and be successful. 'If you have good investments, it doesn't matter - the market today is very strong for resources,' Mr Palmer said yesterday. His vehicle, Resource Development International (RDI), was registered 10 days ago and is owned by his flagship company, Mineralogy. RDI's assets are likely to include a magnetite deposit in Western Australia's Pilbara as well as various oil and gas interests. Page 22.

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Engineering and services group United (UGL.AX: Quote, Profile, Research) has retrenched seven senior managers at its property division, which accounts for about 8 percent of the company's revenue. Property analysts say the move is a universal response to weaker market conditions, with leading real estate agents including CB Richard Ellis and Jones Lang LaSalle also cutting staff. Property investment trusts are expected to reveal lower asset values and flat distributions in the upcoming reporting season. Page 22.

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Australia Post managing director Graeme John says environmental concerns will force the freight industry to revert to sea and rail deliveries in coming years. Mr John, who will chair an annual meeting of nine global postal groups this week, said demand for electronics and other consumer goods had driven a recent surge in airfreight, but that approach was no longer viable. 'Does the world want to absorb the greenhouse gas so that some kid can get his iPod a bit earlier?' he said. Page 22.

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Ten Network's (TEN.AX: Quote, Profile, Research) share buyback could be jeopardised by its biggest shareholders, CanWest, WIN Corp proprietor Bruce Gordon, and investment fund 452 Capital, who are holding on to their shares. The broadcaster announced a 10 percent buyback last week to arrest a sell-off on the local bourse that has halved its market value since January. Analysts say Ten now faces diminishing its free float to as little as 15 percent, making itself unattractive for shareholders concerned about the stock's liquidity. Page 22.

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