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)
Building materials company James Hardie has suspended its interim dividend and reported a 36 percent drop in net profit compared with the previous year. The company yesterday reported a net profit of US$76.2 million for the six months to September, excluding costs associated with its ongoing market watchdog civil action. Company earnings have been adversely affected by a slowdown in the United States housing market and the global financial turmoil, according to chief executive Louis Gries. Page 17.

Construction firm Leighton Holdings is set to reap around A$280 million from a contract to build a new university in Abu Dhabi secured by its subsidiary, Al Habtoor Leighton Group. The A$1.2 billion joint venture deal to design and construct the Zayed University campus in New Kalifa City would increase Leighton's revenue from the region to A$1.6 billion for fiscal 2009, according to Deutsche Bank. Leighton International managing director David Savage said the company had over A$7.7 billion of work pending in the Middle East. Page 17.

Bauxite miner Alumina has said it may close down some of its high cost operations and draw down current credit facilities following analyst predictions of a slump in the price of aluminium. UBS has forecast aluminium will fetch just 75 U.s. cents a pound in 2009, compared with 85 cents a pound presently, which would result in a A$79 million loss for Alumina in calendar 2009. 'Some of the dramatic price collapse estimates for 2009 are difficult to imagine,' said Alumina financial officer Ken Dean.

Page 19.

Steelmaker OneSteel will continue with its plan to expand iron ore exports one fifth by 2010 despite deteriorating market conditions. 'We are still planning to get to 6 million tonnes in 2010 because it is a good opportunity for the company even in a difficult market,' chief executive Geoff Plummer said yesterday. The company said it plans a reduction in reliance on spot sales and the achievement of 75 percent of total sales coming from long-term contracts. Page 18.

THE AUSTRALIAN (www.theaustralian.news.com.au)
St George Bank chief executive Paul Fegan has turned down an offer of a secondary role following the lender's merger with Westpac Banking Corp, opting instead to take a A$4 million payout. Westpac chief executive Gail Kelly is likely to cut the number of group executives at the merged bank to 12 from 23 after she finalises her executive committee before the end of the week. Following the Federal Court approval of the merger yesterday, Westpac is expected to take control of St George Bank from December 1. Page 19.

Andrew Forrest's Fortescue Metals Group has denied speculation that the West Australian iron ore miner was in takeover talks with China Investment Corp (CIC). The denial came after the South China Morning Post reported that the A$200 billion Chinese sovereign wealth fund was moving on Fortescue jointly with Baosteel Group and China Shenhua Energy . 'We¿re not talking to anyone, there are no discussions,' a Fortescue spokesman said yesterday. Page 20.

Uranium producer Energy Resources Australia has signalled a major upgrade at its Ranger uranium mine in the Northern Territory. ERA, which is 68.4 percent owned by diversified miner Rio Tinto, said a resource to the east of the mine could yield up to 40,000 tonnes of the radioactive metal, worth US$4.2 billion (A$6.4 billion). ERA yesterday flagged a resources statement by the end of the year.

Observers said the update was part of Rio Tinto's attempt to deflect BHP Billiton's hostile takeover bid. Page 20.

Australia and New Zealand Banking Group has paid chief executive Mike Smith A$13 million in the past year despite the bank's dismal recent performance. ANZ has seen its share price halve in the past year, with bad debts ballooning and substantial job cuts in the offing. At the bank's annual meeting in Brisbane next month, shareholders will be asked to approve A$2 million worth of options to Mr Smith, a former chief executive of HSBC Asia Pacific. ANZ shares have slumped to A$13.24 at yesterday's close from A$24 in April. Page 21.

THE SYDNEY MORNING HERALD (www.smh.com.au)
Building products and sugar refining conglomerate CSR will seek to raise A$482 million in a retail and institutional offer to help partly settle its A$1.34 billion debt. CSR will offer new equity to shareholders priced at A$1.40 a share -- a 22 percent discount to its closing price on Friday.

The capital raising comes in the wake of large raisings by companies including National Australia Bank and Incitec Pivot. CSR managing director Jerry Maycock said the raising was a 'prudent, pro-active step...during this period of uncertainty.' Page 20.

National Australia Bank chief executive John Stewart's annual pay dropped slightly following the 10 percent decline in the bank's cash profits to A$3.9 billion. In the year to September 30, Mr Stewart received A$300,000 less that the previous year, taking home A$8.51 million. NAB has been hit with A$800 million in charges caused by its exposure to the distressed United States subprime mortgage market. Mr Stewart, who will leave NAB at the end of December, will be succeeded by NAB senior executive Cameron Clyne. Page 20.

Network Ten gave chief executive Nick Falloon a 70 percent pay hike in fiscal 2008 to A$5.81 million from A$3.41 million despite the broadcaster seeing earnings slide by 25 percent. The pay packet, which included a substantial cash bonus from Network Ten's Canadian parent, CanWest, propelled Mr Falloon to the ranks of the highest paid Australian media executives. In comparison, the pay of Fairfax Media chief executive David Kirk rose 24 percent to A$3.41 million.

Page 21.

The troubled property joint venture between property group GPT and investment bank Babcock & Brown is in further strife after the United States-based Wachovia Bank , which is owed US$112 million (A$171 million), called in a loan secured against some of its investments. Wachovia's move came after an investment fund that holds loan assets on behalf of the joint venture declined to put up extra collateral sought by Wachovia. Babcock & Brown shares dropped 14.5 percent to 41 cents, while GPT shares fell 10 cents to close at A$1.02. Page 21.

THE AGE (www.theage.com.au)

Toy company Funtastic has announced it has an exposure to collapsed childcare centre group ABC Learning Centres equating to more than a quarter of Funtastic's market value. Funtastic yesterday flagged a 'substantial one-off provision' by the end of the year because of its A$8.5 million exposure. The first meeting of ABC Learning creditors will be held today in Brisbane, with administrator Ferrier Hodgson expecting 'hundreds' of creditors to be present, including employees and shareholders. Page B1.

Australian researchers have called for biofuels to be produced from non-food crops in order to prevent any impact on food production. The Australian Academy of Technological Sciences and Engineering has found that biofuels produced from food items including wheat and sugar would need government assistance to succeed as an industry. Unlike these Generation 1 biofuels, the researchers found Generation 2 and Generation 3 biofuels, which are produced from algae and non-food crops, had better prospects.

Page B2.

Financial services company Challenger will be unable to release investor funds frozen in its accounts despite a half-a-billion dollar money injection by the Federal Government.

Challenger, formerly the investment vehicle for the billionaire Packer family, will receive the funding as past of a Government plan to keep small, non-bank lenders afloat in the economic downturn. Challenger froze redemptions from one of its trusts last month after the Government guaranteed bank deposits. Page B3.
-- Keywords: DIGEST AUSTRALIA BUSINESS .

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