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)

Telecommunications company Telstra will today hold its annual general meeting in Sydney, the first presided over by chairwoman Catherine Livingstone since her appointment six months ago. Analysts say the meeting is expected to see heated contributions from shareholders over the company's negotiations with the Federal Government on Telstra's involvement in the national broadband network. Page 49.

Department store retailer David Jones will this week release sales figures for the first quarter, with analysts expecting the company to report that total sales increased by 4 percent. The result would outstrip that of rival Myer, which debuted on the Australian Securities Exchange on Monday with a weak performance. Analysts say that a strong result from David Jones would reinforce perceptions that Myer's offer was overpriced. Page 49.

The Australian Communications and Media Authority is reviewing the position of David Evans, a director of media companies Fairfax Media and Village Roadshow. The regulator is investigating a breach of the Broadcasting Services Act, which bans a person from being a director exercising control over more than two commercial radio licences in the same market. In combination, Fairfax and Village own three or more licences in a number of markets. Page 49.

Mining company Rio Tinto says its Australian aluminium operations could be threatened by both rising electricity costs and the Federal Government's carbon emissions scheme. Jacynthe Cote, chief executive of the company's Alcan aluminium unit, yesterday said that negotiations on electricity contracts could affect the viability of local aluminium smelters.

Earlier this year Alcan closed an overseas smelter due to power costs. Page 50.

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

Perth-based newspaper publisher West Australian Newspapers Holdings yesterday released net profit results for the first quarter. Although the result of A$22.9 million for the period was below last year's figure, it was an 18.6 percent improvement on the previous two quarters. Chief Executive Chris Wharton said, 'We are seeing positive trends and, almost without exception, we have seen week-on-week growth since August.' Page 39.

Contracting group Leighton Holdings has reached a new agreement with mining contractor Macmahon Holdings, removing a previous clause restricting Leighton from increasing its current 19.9 percent stake in Macmahon. Macmahon chief executive Nick Bowen yesterday said, 'We are aware that there is no restriction on them now but they have given us no indication that they are looking at changing their position.' Page 40.

Moody's Investors Service yesterday upgraded the outlook for Australian real estate investment trusts (A-REIT) from 'negative' to 'stable'. Announcing the change, Moody's Clement Chong said, 'There are clear signs that the business conditions for the A-REIT sector are stabilising, with Australia's economy outperforming.' The 16 trusts making up the S&P/ASX 200 A-REIT Index reported losses of A$19.5 billion last year. Page 40.

West Australian Premier Colin Barnett yesterday said this week's fire on a leaking gas rig off the state's coast raised concerns about the safety of other proposed projects. The rig, operated by PTTEP Australasia, has been leaking oil for the past 10 weeks. Premier Barnett questioned the safety of plans by Shell to develop the world's first floating gas platform off the West Australian coast, and a plan by Inpex to build an 800 kilometre subsea gas pipeline. Page 40.

THE SYDNEY MORNING HERALD (www.smh.com.au)
Property developer Lend Lease's proposal to purchase the remaining stake of aged care group Lend Lease Primelife has been approved as fair and reasonable by independent expert Deloitte Corporate Finance. The independent directors of Primelife have also recommended the proposal to security holders, who will vote on the 31 cent-a-share offer at a meeting next month. Lend Lease currently owns 43.2 percent of Primelife.

Page 4.

The Australian Taxation Office last year questioned actor Paul Hogan under oath as part of an audit of his tax affairs.

Although it has been known that the tax office was investigating Mr Hogan, details of the investigation were only revealed yesterday as Mr Hogan's financial advisor, Tony Stewart, filed documents with the Federal Court. Criminal charges were laid against Mr Stewart in April for refusing to answer tax office questions. Page 5.

Airlines around the world are suffering a severe downturn, with one of the best-positioned airlines, Qantas Airways , in its worst profit slump since the airline listed in 1995. Airlines are seeking alliances in a bid to cut costs, however, former Qantas chief executive Geoff Dixon recently said such alliances cannot replace 'genuine mergers' between airlines, and the agreements are likely to be stepping stones towards such consolidation. Page 7.

Leisure and entertainment group Amalgamated Holdings yesterday announced plans for a A$107 million equity raising.

The company will allow investors to trade renounced entitlements on the stock exchange over the next few weeks rather than use an accelerated undertaking and bookbuild. Using this structure has become unusual, however, it may become more widely used again as it is seen as providing better value for the renounced rights.

Page 9.

THE AGE (www.theage.com.au)
Yesterday's move by the Reserve Bank of Australia (RBA) to lift interest rates by 25 basis points will take effect from next Monday according to Australia's major banks. The high cost of wholesale funding may also push banks to lift rates beyond any future increases by the RBA. Federal Treasurer Wayne Swan has called on banks to show restraint when it comes to home owners.

Australia and New Zealand Banking Group was the first bank to lift rates, just 15 minutes after the RBA's announcement.

Page B4.

The International Monetary Fund (IMF) yesterday said that Australia is one of only five Western countries which currently need 'little or no' fiscal tightening to control public debt.

The report from the IMF said that in 2014 the United States will have debt equal to 108 percent of its gross domestic product (GDP), whereas Australia's gross debt will be only 28 percent of GDP. Page B5.

Analysts are warning that Seven Media Group and PBL Media's Nine Network, Australia's two largest television broadcasters, are at risk due to their high levels of debt. Professor Neal Stoughton of the Australian School of Business yesterday said that both companies would face restructuring if their private-equity owners decide to exit. Seven has obligations to lenders totalling around A$3.9 billion, while Nine's debts are around A$4 billion. Page B5.

Malaysian company Tune Hotels has said it intends to open its first Australian hotel in Melbourne within a year. The budget hotel chain's chief executive, Mark Lankester, recently said he had been examining a number of sites in the city. 'The Australian market is superb, and Melbourne is a fabulous city. It makes a lot of sense to be here. People can fly very affordably. We aim to break into Melbourne and then Perth,' Mr Lankester said. Page B9.
-- Keywords: DIGEST AUSTRALIA BUSINESS . .

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