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)
--Energy giants Royal Dutch Shell, Total, BP and BHP Billiton are considering whether to invest early into Australia's shale gas industry to secure acreage before assets become prohibitively expensive. "We are studying every square inch of Australia right now obviously there are things there that geologically we just owe it to ourselves and our shareholders to understand and we would hate to see somebody make a big move where we were not on our toes," Mike Yeager, head of petroleum at BHP, said yesterday. Page 17.
--Private hospital operator Healthscope is preparing to sell its pathology divisions in the Northern Territory, Western Australia, New South Wales and Queensland to rival Sonic Healthcare in a deal that observers say could be worth as much as $100 million. Healthscope, which is owned by private equity firms The Carlyle Group and TPG Capital, report edly believes that it lacks the economies of scale necessary to meet profit goals in those states. Page 17.
--Tom Gorman, chief executive of pallet manufacturer Brambles, yesterday said the company was looking for new ways to service clients as it prepares for a "low-growth world", especially in western Europe and the United States (US). "Some of the high-level news out of the US is without a doubt positive, but if you look at the consumer led recovery in the US and consumer staples, where we participate, we have still not seen a big upturn," Mr Gorman said. Page 19.
--Shareholders yesterday recorded a first strike against miner Mirabela Nickel, with more than 40 per cent rejecting the company's remuneration report at its annual general meeting in Perth. Vas Kolesnikoff, chief executive of the Australian Shareholders Association representative body, said that vast pay rises had been awarded despite an 80 per cent fall in the share price. "There's clearly no alignment with shareholder interest there's always an excuse for poor performance, but no accountability," Mr Kolesnikoff said. Page 21.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--Representatives from the International Monetary Fund and global credit rating agencies have arrived in Australia for meetings with Westpac Banking Corporation, Australia and New Zealand Banking Group, National Australia Bank and Commonwealth Bank of Australia. The four major lenders will be tested on their capacity to withstand fiscal shocks, amid concerns that the European debt crisis could escalate should Greece leave the euro zone. Page 31.
--Federal Treasury Secretary Martin Parkinson yesterday told an Australian Business Economists conference that structural changes in the economy are reducing government tax revenues and will likely result in further job cuts at struggling retailers and manufacturers. Dr Parkinson added that there was some concern over whether a drop in the unemployment rate to 4.9 per cent last month was a true reflection of the Australian labour market. Page 31.
--A consortium including the Utilities Trust of Australia and Canadian firm Caisse de Depot et Placement du Quebec yesterday announced a $1.25 billion or $2.35 per share offer for Hastings Diversified Utilities Fund, trumping a $2.07 a share bid from natural gas infrastructure business APA Group. "There is daylight between the offer price of the two proposals," Colin Atkin, chief executive of the utilities fund, said. Page 31.
--Beverage maker Coca-Cola Amatil (CCA) yesterday announced it had secured the rights to distribute three international beer labels in the Pacific Islands and Fiji. Analysts believe the contract lays the foundation for the company to acquire similar deals in Australia once its non-compete agreement with brewer SABMiller, the owner of local beer maker Foster's Group, expires at the end of next year. "The alcoholic beverage market in Australia is highly profitable," Terry Davis, chief executive of CCA, said. Page 31.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--More than 200 employees in the real estate industry have been made redundant due to a declining number of development ventures and the collapse of transactions. According to observers, the job losses are spread across back office staff to senior management, while chief executives are having their salaries reduced. Recruiters also warn that because many employees have been awarded redundancy payments, they will not receive welfare payments and therefore will not be recorded in official unemployment figures. Page B1.
--Martin Parkinson, head of Federal Treasury, yesterday said that Australia's economy would withstand the impact of one of the tightest federal budgets in the country's history because the majority of the spending cuts would not affected the local economy. Dr Parkinson told the annual Australian Business Economists lunch that the budget's rebound to a $1.5 billion surplus from a $44.4 billion deficit amounted to a 3.1 per cent contraction of gross domestic product. Page B1.
--Chris Hamilton, chief executive of the Australian Payments Clearing Association industry body, yesterday said that while "cheques are inevitably going away" it was pre-emptive to "draw a line" under them. The remark followed the publication of a year-long report into the future of cheques by the association, which found that some groups would be strongly disadvantaged if cheques were abolished, despite the stark rise in electronic transfers such as credit cards, Bpay and EFTPOS. Page B3.
--Research firm Standard Media Index has revealed that the $13 billion local advertising sector grew 2.2 per cent in April on the same month a year ago, with the outdoor and magazine industries shrinking. Pay television was the brightest spark for advertisers, growing by 15 per cent, while free-to-air television experienced marginal growth. "It's a good sign for things to come," Peter Wiltshire from media group Nine Entertainment Company said. Page B3.
THE AGE (www.theage.com.au)
--The S&P/ASX 200 Index yesterday fell 0.7 per cent to close at 4266.3 points, with investors concerned about commodity prices and their related stocks. Global miner BHP Billiton lost A60 cents to close at $33.86, while telecommunications giant Telstra soared A7 cents to $3.71. "There is obviously an appetite for stocks that pay a dividend yield but it feels to me this isn't a typical riskoff - it's something more," Riccardo Briganti from financial advisers Macquarie Private Wealth said. Page B1.
--Analysts from investment bank Deutsche Bank have warned that there may be further reductions in deposit rates over the course of the year as lenders attempt to maintain profit margins. "Further movements in either the lending rates or deposit rates are needed to offset funding pressures," Deutsche Bank's James Freeman said, adding that it could take up to three months before term deposits were reduced. Page B2.
--A couple in Sydney have been jailed for tax fraud after being found guilty of channelling money from their air-conditioning business through Vanuatu. Lesley and Paul Mascall, along with their business associate Paul Sewell, were arrested following an inquiry from the multi-agency Project Wickenby tax probe. Mr Mascall was jailed for four years, while his wife was sentenced to three years imprisonment. Page B3.
--The former chairman of the Federal Government's Future Fund, David Murray, yesterday announced that the next 15 years would prove economically challenging for Australia as foreign governments continue to manage the aftermath of the global financial crisis. Mr Murray, who now works for investment bank Credit Suisse after leaving the government's investment fund, also said he was disappointed that the federal budget "did nothing to move forward on the issue of productivity". Page B4.
Reuters