STRATEGIC PLANNING – AUSTRALIA

Pragmatic BHP not chasing coal bargains despite fire sale

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Original article by James Thomson
The Australian Financial Review – Page: 11 : 26-Apr-16

BHP Billiton executive Mike Henry says acquiring coal assets is not high on the resources giant’s list of priorities. He adds that BHP would consider any coal assets that were put on the market at very low prices, but notes that any bargains are unlikely to include quality assets. A number of mining companies are seeking to divest coal mines, and Henry expects this trend to continue. BHP CEO Andrew Mackenzie has previously indicated that the group is particularly interested in buying copper and conventional oil assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, GLENCORE PLC, PEABODY ENERGY CORPORATION, ANGLO AMERICAN PLC, APOLLO GLOBAL MANAGEMENT LLC, MITSUBISHI CORPORATION

Shareholders divided on Telstra’s $1.8b

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 19-Apr-16

Telstra will retain a 6.5 per cent stake in China’s Autohome following a deal to sell 47.7 per cent of its stake to Ping An Insurance Group for $US1.6bn ($A2.1bn). Telstra CEO Andy Penn says the telco will adopt a "balanced approach" to using the proceeds of the sale, which may include a capital management initiative. Bradley King of Armytage says his preference would be a special dividend rather than an on-market share buyback. He adds that the telco may seek other investment opportunities in Asia.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, AUTOHOME INCORPORATED, PING AN INSURANCE COMPANY OF CHINA LIMITED, ARMYTAGE PRIVATE LIMITED, INVESTORS MUTUAL LIMITED, TRIBECA INVESTMENT PARTNERS PTY LTD, BEULAH CAPITAL PTY LTD, SAN MIGUEL CORPORATION

Rio ices coal asset sale in full market

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 18-Apr-16

The large number of coal mines that are for sale globally has prompted Rio Tinto to put further asset sales on hold until the market improves. Rio is seeking buyers for the Mount Thorley Warkworth and Hunter Valley Operations mines in New South Wales, but it has not been able to find a buyer that is willing to pay a premium for the high-quality assets. Meanwhile, Whitehaven Coal MD Paul Flynn expects more mining companies to offer quality coal assets for sale.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC, GLENCORE PLC, ANGLO AMERICAN PLC, PEABODY ENERGY CORPORATION, VALE SA, BHP BILLITON LIMITED – ASX BHP, APOLLO GLOBAL MANAGEMENT LLC, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED

BHP steps up JV controls

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Original article by Barry FitzGerald
The Australian – Page: 17 & 18 : 18-Apr-16

BHP Billiton may seek to restructure its non-operating joint ventures in Latin America in the wake of the Samarco disaster in Brazil. Any such move would affect the Samarco iron ore mine, the Cerrejon coal mine in Colombia and the Antamina copper and zinc mine in Peru. BHP Billiton holds large stakes in all three mines, but it does not operate any of them. Credit Suisse has estimated that unwinding the joint ventures could affect some $US17.4bn worth of mining assets in the region.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, CREDIT SUISSE (AUSTRALIA) LIMITED, GLENCORE PLC, TECK CORPORATION, MITSUBISHI CORPORATION, ANGLO AMERICAN PLC

Foxtel’s $8b float plans delayed

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Original article by Dominic White
The Australian Financial Review – Page: 25 : 18-Apr-16

Foxtel’s joint owners, News Corp and Foxtel, initially planned to list the pay-TV company on the Australian sharemarket in the second half of 2016. However, the proposed IPO is believed to have been pushed back to 2017. Negotiations over a new broadband arrangement are said to be a key issue. Plans for the IPO also include merging News-owned Fox Sports with Foxtel. Foxtel faces growing competition from subscription video-on-demand companies such as Netflix.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, FOX SPORTS AUSTRALIA PTY LTD, NETFLIX INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, SEVEN NETWORK LIMITED, NINE NETWORK AUSTRALIA LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD

The top tasks facing Rio’s new chief

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 13-Apr-16

There is speculation that Rio Tinto will pursue acquisitions when Jean-Sebastien Jacques succeeds Sam Walsh as CEO in July 2016, while asset sales may also potentially be on the agenda. Jacques is largely an unknown quantity to most investors, so one of his first priorities will be to outline his strategy for Rio Tinto. The group will also need to diversify its operations to reduce its reliance on iron ore, while free cash flow and big data are also likely to be priorities for Jacques.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCAN INCORPORATED, TURQUOISE HILL RESOURCES LIMITED, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

BHP is poised to pounce: chief

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Original article by Barry FitzGerald
The Australian – Page: 19 & 20 : 12-Apr-16

BHP Billiton shareholders will receive interim dividends totalling $A848m after the group adopted a minimum payout ratio. Its half-year payout would have been about $A3.28bn if it had retained a progressive dividend policy. CEO Andrew Mackenzie says the change in policy means BHP has the capacity to undertake acquisitions if an appropriate opportunity arises. However, he adds that its focus will be on developing existing assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

BHP targets copper lift at Olympic Dam

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Original article by Matthew Stevens, Amanda Saunders
The Australian Financial Review – Page: 13 & 18 : 6-Apr-16

BHP Billiton now expects to be able to ramp up copper production at the Olympic Dam mine in South Australia to 280,000 tonnes a year at a cost of less than $US500m ($A655m). The resources giant indicated in late 2015 that it could lift annual production to 255,000 tonnes over five years without significant capital investment. BHP expects the mine’s copper output to top 200,000 tonnes in 2015-16, and it aims for annual production of 220,000 tonnes by 2019. BHP has forecast that global demand for copper will exceed supply by 2020.

CORPORATES
BHP BILLITON LIMITED – ASX BHP

Optus to cut hundreds of jobs in pursuit of ‘sustainable growth’

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Original article by Max Mason
The Australian Financial Review – Page: 5 : 5-Apr-16

Optus will reduce its workforce by up to 480 positions within its consumer and enterprise divisions. The telco stated on 4 April 2016 that the number of redundancies had not yet been determined, as some workers will be relocated to other divisions. Optus said costs must be reduced to ensure "sustainable growth".

CORPORATES
SINGTEL OPTUS PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, VODAFONE HUTCHISON AUSTRALIA PTY LTD, ENGLISH PREMIER LEAGUE, SINGAPORE TELECOMMUNICATIONS LIMITED

Booktopia pushes ahead with plans for $150m IPO

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 : 30-Mar-16

Australian online book retailer Booktopia may pursue a sharemarket float in the second half of 2016. CEO Tony Nash says the bulk of proceeds from the proposed IPO will be used to finance Booktopia’s expansion plans and invested in its supply chain processes. Booktopia’s sales are forecast to exceed $A100m in 2017, and Nash is not unduly concerned about competition from The Book Depository, which is owned by Amazon.

CORPORATES
BOOKTOPIA PTY LTD, THE BOOK DEPOSITORY LIMITED, AMAZON.COM INCORPORATED, BOOKWORLD, PENGUIN RANDOM HOUSE, ORD MINNETT GROUP LIMITED, MORGANS FINANCIAL LIMITED, TEMPLE AND WEBSTER GROUP LIMITED – ASX TPW, SURFSTITCH GROUP LIMITED – ASX SRF, IBISWORLD PTY LTD