Australian Stocks Fall

123jump.com Staff
05 Dec, 2007
New York City

ASX 200 Index fell by 0.4% to 6,508.10 after banks and resources stocks declined. BHP Billiton declined 0.9%, Rio Tinto lost 2.6%, and Newcrest slod 0.2%. Property management copmany Lend Lease said that they are exploring ways to takeover Mirvac Property.

[R]3:00AM New York, 5:00PM Tokyo - The Australia index slid 0.4% after loses in mining stocks.[/R]

ASX 200 Index declined by 0.4% or 22.70 to close at 6,508.10.

BHP Billiton was lower at 0.9%, Rio Tinto lost by 2.6% and Newcrest mining slid 0.2%.

Preliminary stock turnover was 2.06 billion with shares worth $5.78 billion changing hands, with 546 stocks up, 719 down, and 351 unchanged. The top traded stock by volume was men''s merchandiser Retail Star with 402.55 million shares changing hands valued at $11.17 million.

Australia''s property giant, Lend Lease today confirmed having held talks with Mirvac Property Group about a potential transaction which could include a merger. The company however indicated that it had no expectations and that it was unsure about how the deal would turn out.

The company said it would constantly evaluate alternatives to maximize shareholder value from its businesses and from time to time considers proposals from third parties. Lend Lease shares were higher at 2.3%.

Australia''s largest builder, Leighton Holding share gained after the company announced today that its subsidiary Leighton International had been awarded A$740 million ($650 million) of new work in Dubai and Abu Dhabi in the United Arab Emirates, through its 45%-owned associate Al Habtoor Engineering.

The company said in a statement that it had secured a $520 million contract for the construction of the new JAFZA convention centre in Dubai for the Jebel Ali Free Zone Authority, and two hotels for Aldar on Yas Island in Abu Dhabi worth a total $130 million.

""These new contracts are further evidence of the tremendous opportunities for growth for Leighton International in the Arabian Gulf region, and the UAE in particular,"" said David Savage, Managing Director of Leighton International in the statement.

The JAFZA convention centre complex will comprise twin towers for the convention centre, a food court, a 33-storey office complex and seven-storey hotel.

The project for Aldar comprises the construction of two separate 4-star hotels on adjacent plots on Yas Island in Abu Dhabi. The first hotel comprises 400 rooms and 30 suites; the second 200 rooms and 10 suites. Construction will commence immediately and will be completed in September 2009.

Last month Leighton International, through Al Habtoor Engineering, secured the $290 million (A$330 million) JW Marriott Hotel in Abu Dhabi.

The project, for Abu Dhabi National Hotels, represented the first contract won by Al Habtoor Engineering since it merged with Leighton International''s operations in the Arabian Gulf in September this year.

Xstrata Coal Pty Limited today announced its intention to make an unconditional all cash offer to acquire all of the issued and outstanding shares in Resource Pacific Holdings Limited for A$2.85 per share, valuing Resource Pacific''s issued share capital at approximately A$960 million. The offer eclipsed an all-share bid for the Australian mining company by a local rival, New Hope.

Xstrata Coal Chief Executive, Peter Coates, said: ""This is a highly attractive offer for Resource Pacific shareholders, providing the immediate opportunity to realise a cash premium for their investment in a single mine operation.""

Xstrata Coal''s cash Offer is priced at a 85% premium to the 30 day volume weighted average price1 of Resource Pacific shares up to and including 25 September 2007, the day prior to the announcement of New Hope''s takeover offer.

The company also said that its offer price also represents a 78% premium to the A$1.60 per share subscription price of Resource Pacific''s recent rights issue – which was priced by the company just over one month ago and represents more than 30% of the company''s current issued share capital.

Xstrata Coal also announced today that it has entered into a co-operation agreement with Marubeni Corporation, Resource Pacific''s largest shareholder. As a result, Xstrata Coal now has a relevant interest in Marubeni Corporation''s 10.28% shareholding in Resource Pacific. Together with its existing interest of 5.28% acquired by equity swap arrangements and on-market purchases, Xstrata Coal has a total relevant interest of 15.56% in Resource Pacific shares.

""We believe our cash Offer recognises the full value of Resource Pacific''s Newpac mine and offers an attractive and risk-free premium to shareholders. Xstrata Coal has a proven history of successful longwall mining in the New South Wales Hunter Valley, with the skills, capabilities and financial stability required to achieve Resource Pacific''s potential,"" Mr Coates said.

Newpac is an underground semi-soft coking coal and thermal coalmine located in the Hunter Valley coalfields of NSW, in close proximity to a number of Xstrata Coal operations. Xstrata Coal also owns the mining lease over Newpac.

The Offer will be made by Titan Holdings Finance Pty Limited, a subsidiary of Xstrata Coal, by way of an off-market takeover bid under the Australian Corporations Act 2001.

Xstrata Coal has already received approval from the Australian Foreign Investment Review Board in relation to this Offer. No other regulatory approvals are required. Resource Pacific jumped 3.4% above Xstrata''s bid and 31% more than an earlier offer by New Hope Corp.

Australian property trust and homebuilder, Mirvac Group''s stock gained to a record after announcing that it had held talks with larger rival Lend Lease Corp. about ``potential transactions.''''

There was speculation in the local media that a reverse takeover was close to being completed. Shares of Mirvac rose by 2.7%, raising its market value of A$6.2 billion ($5.4 billion).

A combined group would marry Lend Lease''s construction projects, which span six continents and include jobs for the London 2012 Olympics and the U.S. Air Force, with Mirvac''s almost 30,000 residential property developments in Australia and A$13.3 billion in funds under management.

A merger would create the nation''s second-largest real estate group by market value, trailing shopping mall owner Westfield Group.

Coca-Cola Amatil Ltd today advised that its 50:50 alcohol joint venture company with SABMiller plc, Pacific Beverages Pty Limited has acquired 100% of the issued shares of Bluetongue Brewery Pty Ltd from a syndicate including John Singleton and others.

The company said in a statement that Pacific Beverages has also entered into a long-term agreement with John Singleton to further develop and strengthen the Bluetongue premium beer brands.

Bluetongue was launched in November 2003 and operates from an established boutique brewery of in excess of 50,000 hectolitres in capacity in Cameron Park near Newcastle, New South Wales (NSW).

Bluetongue''s premium beer brands include Bluetongue Premium Lager, Bluetongue Premium Light, Bluetongue Traditional Pilsner, Bluetongue AlcoholicGinger Beer, and Bondi Blonde.

CCA''s Group Managing Director, Terry Davis said, ""The acquisition of Bluetongue Brewery adds a fast-growing and uniquely Australian premium beer brand to Pacific Beverages'' existing portfolio of imported premium beers and fits perfectly with our strategy of developing our presence in the Australian premium beer market. We have been looking for some time for a premium local beer brand and could not have found anything better positioned in the category than Bluetongue.

""The sales penetration achieved by Pacific Beverages in its first twelve months of operation has been outstanding and consumer acceptance of our premium beer brands has exceeded our expectations.

""Our core capabilities in sales, distribution and customer relationships, and SABMiller''s brewing and premium beer brand management expertise, have delivered beyond our internal targets and will now be utilised in further developing the Bluetongue premium beer brands in Australia,"" Mr. Davis said.

John Singleton said, ""The Bluetongue brand has grown well beyond my expectations and its acquisition by Pacific Beverages will give it the opportunity to fully realise its potential. With CCA''s sales and distribution strength, Bluetongue will now be better placed to compete more effectively on a national scale in the highly profitable Australian premium beer market.""

The acquisition price is subject to confidentiality and therefore not disclosed. However, the cost is not material to CCA or SABMiller.

The dollar closed weaker today after indications the tightening bias of the Reserve Bank of Australia (RBA) may be easing, following the release of weaker than expected gross domestic product (GDP) figures. At the close, the dollar was trading at US$0.8702/07, down from yesterday''s close of US$0.8755/60.

Of the ASX 200 index shares, Leighton Holdings led the gainers with a rise of 5.5% followed by increases in Murchison Metals by 4.7%, in Transfield Service by 3.8%, 3.6 in Worleyparsons and 3.5% in Cons Metals.

Of the ASX 200 index stocks Hills Industries led the decliners with a fall of 8.4% followed by losses in Bendigo Bank Limited of 5.2%, Futuris Corp Limited by 4.7%, 4.6% in STW Communication and 4.4% in Salay Milay Mini.

In other stocks Westpac Banking was up 0.8%, New Zealand Bank was lower at 0.4% and National Australian Bank shed 0.5%. In the energy sector Oil Search was up 2.6%, Santos gained 3.5% and Woodside Petroleum shed 1.4%. In the gold sector Lihir was weaker at 0.5%.

The retailers were mixed Woolworths gained by 1.2%, Harvey Norman was higher at 1.3%, David Jones slid 0.8% and Wesfarmers Limited shed 0.9%. In the media stocks News Corp added 0.4% while its non-voting scrip found seven cents to $23.57, PBL media spin-off Consolidated Media Holdings was down 1.9% and Fairfax slid 0.6%.