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)
Qantas Airways yesterday dismissed rumours that it may consider resuming merger talks with British Airways (BA) , saying that consolidation is not on Qantas chief executive Alan Joyce's agenda. BA chief executive Willie Walsh recently said that a merger between BA and Iberia could revive plans for a merger with Qantas. However, a Qantas spokeswoman yesterday said that the carrier was neither in talks with BA, nor Spain-based Iberia. Page 19.

Electronics retailer Harvey Norman yesterday predicted that it would have the best Christmas yet. Chairman Gerry Harvey released figures, foreshadowing a 40 percent rise in profit before tax and a 7.7 percent jump in sales and minority interests for the six months to the end of December. Retailers have grown increasingly concerned about the absence of government stimulus payments. Harvey Norman's statement to the Australian Securities Exchange says its forecast was partly based on current economic trends. Page 19.

National Australia Bank (NAB) could face losses if entertainment company Tabcorp is successful in acquiring National Leisure & Gaming (NLG). NLG owes NAB A$180 million through its BNZA arm, from which Tabcorp plans to write-off A$50 million if it acquires the pub operator. NAB's business, private and wealth corporate affairs leader, Stacey Mitchell, yesterday said the bank would not comment on individual client circumstances. Page 20.

Marketing for Queensland mining magnate Clive Palmer's A$3.3 billion Resourcehouse initial public offering on the Hong Kong Stock Exchange has been postponed for at least one week. Reasons for the delay are unclear, but the company will continue with its roadshow to include Hong Kong, Singapore, Australia and the United States. The company is confident to be listed in Hong Kong before Christmas. Page 45.

THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Taxation Office (ATO) will continue to pursue miner BHP Billiton over a A$2.2 billion tax bill relating to an iron plant and mineral sands mine in Western Australia. BHP has written off money that the plant and the mine owed internally to the BHP Finance unit, after the unit lent at a higher rate than it borrowed, returned a profit and paid a dividend. The ATO has begun an appeal in Melbourne's full Federal Court against an April decision in favour of BHP. Page 20.

Logistics and transport company Toll Holdings yesterday announced the retirement of its chief operating officer, John Ludeke. The company plans to create three new operating divisions: specialised and domestic freight, global express and domestic forwarding, and global express. Managing director Paul Little said the restructuring would foster the company's growth in overseas markets. Mr Little added that Mr Ludeke would retire at the end of the financial year, after spending 13 years at the company. Page 20.

Australia and New Zealand Banking Group (ANZ) has secured regulatory approval for its locally incorporated bank in China and now plans to invest A$435 million in order to expand the business. ANZ has a 20 percent stake in Shanghai Rural Commercial Bank and Bank of Tianjin. Alex Thursby, chief executive of Asia Pacific, Europe and America, said the bank's main focus now is to concentrate on China, having built a solid foundation in Indonesia and Vietnam. Page 21.

Cameron Clyne, chief executive of National Australia Bank, has announced that the bank would keep a close eye on the possible break up of Royal Bank of Scotland (RBS) assets in Britain. 'We're watching closely. We aren't sure what assets will be divested,' Mr Clyne said yesterday. RBS has agreed to diversify its insurance arm and dispose of its branches in England and Wales in order to address concerns from the European Union. Mr Clyne added that the bank would continue to focus on the local market but if opportunities arose the bank would have the necessary capital to take advantage of them. Page 21.

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

Rising gold prices have lured mining companies from Communist-ruled China to Australia's gold sector. Chinese state-owned North West Mining and Geological Exploration (NWME) has made a deal with Melbourne-based Range River Gold, which sees NWME pay A$6 million for exploration and development in exchange for a 49 percent stake in Range River's Indee gold project in the Pilbara region. The Foreign Investment Review Board approved the deal, which follows NWME's A$10.5 million investment in Meridian Minerals. Page 2.

Tax Commissioner Michael D'Ascenzo and the Australian Tax Office has challenged the right of buyout specialist Texas Pacific Group's (TPG) clients to retain a total of A$680 million from the Myer float. The move came as Australian authorities began a crackdown against offshore tax havens.

University of Sydney senior economics and business lecturer David Chaikin yesterday said that tax havens are an essential part of private equity companies, hedge funds and Australia's largest corporate names. Page 8.

Retailer Big W has commenced trialing a new software kiosk that allows customers to browse, click and burn a wide range of software. The kiosk system is provided by Digital Lifeware, which can produce a burned disc complete with packaging, manuals, software licence and original cover in a DVD case. The kiosk will hold up to 100 titles compatible with PC and Mac platforms. Big W will continue to stock pre-packaged software. Page 9.

THE AGE (www.theage.com.au)
Australian banks may still need to ride out a second wave of corporate collapses, despite many declaring the worst was behind them. National Australia Bank has a A$227 million exposure to Queensland cotton farm Cubbie Station. Australia and New Zealand Banking Group has a balance in non-performing loans of A$7.2 billion, while Westpac Banking Corporation has a A$6.1 billion exposure. The Australian Securities and Investment Commission says that 7212 companies collapsed in the year to September. Page B2.

Building products company James Hardie reported yesterday a headline loss of US$97.5 million for the six months to September 30, as the company renewed its commitment to the asbestos fund. The company will renew payments to the fund next year as its operating profits are expected to hit close to US$115 million, the top end of analysts' forecasts. Chief executive Louis Gries said the number of asbestos claims had declined from 320 to 300 for the 12 month period, while the company paid claims in the six months totalling A$56.1 million. Page B3.

One of Australia's largest private wine companies, De Bortoli Wines, posted a net loss of A$1.6 million due to saturated markets, slowing of the global economy and foreign currency losses. The wine company produces brands such as Noble One, Gulf Station and Windy Peak. The local industry is currently producing a surplus of 100 million cases a year, as the dollar continues to strengthen, export sales continue to decline in markets such as North America and Europe. Page B3.

Federal Communications Minister Stephen Conroy will officially open an upgrade to telecommunications company TransACT's network, which might compete with the Government's A$43 billion national broadband network (NBN). TransACT plans to activate a 'gateway' for its Canberra-based fibre-to-the-premises network, which it had offered to sell to the NBN company. The proposal was rejected and sources suggest the network had duplicated Telstra's infrastructure, which NBN company is attempting to purchase. Page B3. --

Keywords: DIGEST AUSTRALIA BUSINESS . .

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