Results diary

Stocks on the move Real-time Equity News

08:40GMT 14Nov2008-Celesio gains on Deutsche Bank upgrade

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Shares in European drug distributor Celesio rise 6 percent, one of the top gainers in Frankfurt's midcap index, after Deutsche Bank upgrades the stock to "hold" from "sell", citing a drop in the company's share price.

"We upgrade Celesio to Hold (from Sell) because the shares have undershot our price target," Deutsche Bank analysts write.

"Fundamentally, we see no reason to get excited about Celesio at this stage.

However, given potential hype around the liberalization of pharmacy markets we also see risk of aggressive share price rallies, especially as volatility is high for the stock, which trades at new five-year share price low," they add.

The company's shares came under pressure on Thursday, after it released nine-month results and cut its outlook, citing reduced opportunities to finance growth and lower sales in non-medical product.

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08:35GMT 14Nov2008-Salamander Energy bounces after update

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Shares in Salamander Energy up 15.5 percent, topping the FTSE 250 leaders board with the stock rallying after a recent volatile performance as a trading update provides some reassurance.

Oriel Securities says Salamander's interim management statement contains little new information but reaffirms that near-term production at the group growth is on track.

Another analyst points out that Salamander's share price has been "ludicrously volatile" recently, as has the sector, and the stock is simply reacting with the market rally today.

Reuters Messaging:jon.hopkins.reuters.com@reuters.net

08:37GMT 14Nov2008-European shares rally; led by miners, banks

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European shares race higher in early trade, snapping a three-day losing streak, as mining shares track higher metals prices and banks advance after recent declines.

At 0838 GMT, the FTSEurofirst 300 index of top European shares is up 2.8 percent at 876.72 points after closing 0.2 percent lower in the previous session.

Commodities stocks add most points to the index, with BHP Billiton up 4.4 percent, and Anglo American rising 9.3 percent.

Reuters Messaging rm://blaise.robinson.reuters.com@reuters.net

atul.prakash.reuters.com@reuters.net

08:34GMT 14Nov2008-Vallourec soars after results, raised targets

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Shares in Vallourec soar 11.7 percent, the biggest gainer on the CAC 40 index as the steel tube manufacturer raises its full-year targets after posting a forecast-beating 7.6 percent rise in quarterly sales.

"The very good results and the solid forecasts show the company's good resilience," CM-CIC analysts write in a note.

Vallourec stock is still down 53 percent so far this year, while the DJ Stoxx industrial index is down 49 percent year-to-date.

Reuters Messaging rm://blaise.robinson.reuters.com@reuters.net

08:23GMT 14Nov2008-ASMI shares slump 7.3 pct on deal collapse

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Shares in ASMI slump 7.3 percent after it says Applied Materials and private equity firm Francisco Partners have walked away from an approach to buy key ASMI units, underperforming a 2.6 percent gain in the Amsterdam midcap index.

"No deal, no upside," says Petercam analyst Eric de Graaf. "After a rapid weakening of the market and the results released by Applied Materials a few days

ago, the likelihood of a deal was low."

De Graaf adds the focus will now move to an Amsterdam court decision for a ruling on a push from activist shareholders Hermes and Fursa to dismiss the company management in a drawn-out dispute over ASMI's underperforming Front-end business.

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08:40GMT 14Nov2008-Miners up on metals rebound ahead of G20

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Mining shares jump as metals prices rebound ahead of a meeting of key industrial and emerging nations. Benchmark London Metal Exchange copper prices rise 4 percent on short-covering ahead of any surprises from the G20 meeting.

The DJStoxx basic resources index rises 5.2 percent, making it the strongest performer in Europe, while the UK mining index surges 6.3 percent. compared to a 3.2 percent rise for the FTSE 100.

Anglo American is the biggest gainer of the FTSE 100, shooting up 9.1 percent, while Kazakh group ENRC climbs 7.5 percent and Xstrata rises 6.9 percent.

"It is clearly too early to say that the global economy is stabilising so acquiring shares in the sector is risky -- especially for the more leveraged plays," analyst Michael Rawlinson at Liberium Capital warns.

Reuters Messaging: eric.onstad.reuters.com@reuters.net Keywords: MARKETS EUROPE STOCKSNEWS

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-- Building, sugar and aluminium conglomerate CSR posted a weaker-than-expected 1 percent drop in first-half net profit, excluding significant items, to A$71.7 million. Blaming higher finance costs, the debt-burdened company said it would curb spending this year but ruled out a business restructure "in the present economic circumstances. Analysts said the weak result was caused mainly by the poor performance of CSRs recently-acquired Viridian glass business, although this was partly offset by a robust aluminium division performance. P27.

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West Australian Newspapers recorded a decline in advertising revenue during October, caused by the slump in media advertising markets. The newspaper publisher, which is 22.4 percent owned by Kerry Stokes Seven Network, said yesterday that ad revenue fell 7.8 percent last month, including a 12 percent drop in takings from classified ads. Chief executive Ken Steinke said "we dont know if October was a bellwether or an aberration...but we are still hopeful that the pre-Christmas ad market will be OK. Page 27.

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The Federal Government has dismissed Telstras calls for a guarantee that structural separation of the telecommunications group would be ruled out as part of the bidding process for the A$4.7 billion national broadband network (NBN). In a noncommittal statement, a spokesman for Communications Minister Stephen Conroy said the NBN tender "does not mandate structural separation and I note that Telstra has publicly acknowledged that fact. Telstra said it would be unable to submit a "bankable bid in the absence of a guarantee. P27.

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Babcock & Brown Infrastructure (BBI) yesterday suspended distributions to stakeholders. "We consider that security holders interests are better served by preserving operating cash flows within the business to reduce debt, chairman David Hamill told the infrastructure funds annual meeting. The announcement, coming a day after BBI sold a half-stake in New Zealand power utility Powerco, triggered a 25 percent slide in its shareprice to A19 cents. Page 27.

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

-- Chinese state-owned group Chinalco said yesterday that its stake in Rio Tinto, which was held by collapsed investment bank Lehman Brothers, had been "transferred to a new custodian acting on behalf of Chinalco. The announcement came in the wake of speculation last month that the stake had been frozen by Lehman Brothers liquidators after the Wall Street firm went under. Chinalco teamed up with United States aluminium group Alcoa in February to acquire a 12 percent stake in Rio Tintos British shares. Page 20.

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Funds manager QIC Ltd yesterday tabled a 2007-08 after-tax profit of A$4.4 million despite volatile market conditions, a A$5.6 million decline on the previous year. The dividend paid to the Queensland Government fell A$5 million to A$2.2 million. Chairman Trevor Rowe said QIC had A$82.9 billion in funds under management at June 30, up 28.5 percent on a year earlier. "QIC remains positive about the long-term prospects for markets and the investment strategies we have in place, Mr Rowe said. P20.

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British-based BG Group has secured close to an 80 percent interest in coal seam gas producer Queensland Gas Company (QGC) after AGL Energy sold its 22 percent stake. AGL yesterday sold its shareholding in BG Groups takeover target for A$1.2 billion, representing a return on investment of 260 percent in about 18 months. The deal brings BG Group close to completing its A$5.2 billion friendly acquisition of QGC. P20.

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West Australian iron ore miner Brockman Resources yesterday scrapped stage one plans at its Marillana project in the Pilbara, and will move straight to stage two. Managing director cited "the impact of the global financial crisis on the emerging iron ore sector for the decision. He said Brockman had failed to finalise an agreement on rail and port infrastructure access with the Port Hedland Port Authority, state authorities and third-party infrastructure owners within a suitable timeframe for its stage one plans for Marillana. Page 20.

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

-- Childcare centre group ABC Learning Centres is set to hand over management of the company to Peter Walker, a partner at insolvency firm Ferrier Hodgson. It is understood ABC Learnings banks will appoint McGrathNicol as receivers to try and recover as much as possible of the A$850 million they are collectively owed. ABC Learning has been brought to the verge of being placed into administration after missing four consecutive self-imposed deadlines for the release of its revised financial accounts.

Page 31.

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Mirvac, the biggest housing developer in New South Wales (NSW), has downgraded its profit forecast by half and flagged a A$500 million capital raising to prop up its balance sheet. Managing director Nick Collishaw said yesterday the move was necessary in "these uncertain and volatile markets. Mirvac, which in July forecast earnings of A23 cents to A25 cents per stapled security in the current financial year, slashed the guidance to A13.4 cents. The announcement came after housing approvals in NSW slumped by 26.2 percent in September. Page 33.

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BHP Billiton is preparing a detailed statement addressing objections raised by the European Commission to the diversified miners proposed acquisition of Rio Tinto. Observers said yesterday BHP Billiton might fail to secure the commissions approval without the sale of Australian iron ore assets, which may include Rio Tintos 53 percent-owned Robe River joint venture with Japanese group Mitsui, Sumitomo Metals and Nippon Steel. A BHP Billiton-Rio Tinto combination would be the dominant global player in iron ore. Page 33.

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Wealth manager AMP has raised A$450 million through an institutional placement of shares in the first stage of a A$550 million capital raising. AMP, which placed 85 million shares at A$5.30 each, increased the offer from the A$400 million planned previously after attracting strong investor demand. The group plans to raise a further A$100 million from retail investors. Chief executive Craig Dunn said yesterday AMP was "managing the business prudently through the current market turmoil. Page 34.

- - THE AGE (www.theage.com.au)

-- The International Accounting Standards Board (IASB) has decided to permit some financial instruments to be reclassified under international standards. The changes, announced four weeks ago, allow companies with "fair value accounting to change the way assets are valued. Currently, around 100 countries, including Australia, the European Union (EU) and South Africa, use or co-ordinate with these standards. But the EU has now called for further changes to valuations, making other countries nervous that the IASB will give in to Europes request. Page B1.

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Allco Equity Partners (AEP) has terminated a management agreement with the Allco Finance Group parent company, which went into receivership on Tuesday. The private equity firm, part of a consortium that made an unsuccessful attempt to purchase Qantas last year, plans to continue acquiring holdings in operating businesses, although it may undergo a name change. At the annual meeting in Sydney yesterday, AEP chairman Ian Tsicalas said the Allco name had "been quite the opposite of "helpful this year. Page B2.

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The Federal Governments agricultural economics agency, the Australia Bureau of Agricultural and Resource Economics (ABARE), has made predictions of this seasons wheat crop that are 47 percent lower than previous estimates of only seven weeks ago. Poor rainfall in Victorian wheat-growing region is mainly to blame for the downward revision to 1.4 million tonnes. By contrast, ABARE raised its estimates for Queenslands wheat crop by 15 percent, while New South Wales forecast remained unchanged. Page B3.

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Takeover target MYOBs payment of A12.85 cents per share was approved by 98.1 percent of shares voted at the companys annual meeting yesterday. Chairman Simon McKeon said "its been a source of great pride for this board and management team to be able to say not once but twice in the year that were able to repatriate cash. Private equity group Archer Capital and HarbourVest are jointly targeting an acquisition of MYOB. Mr McKeon said his company would not be hurried into a formal decision on the takeover. Page B3. - - Keywords: DIGEST AUSTRALIA BUSINESS . Keywords: DIGEST AUSTRALIA BUSINESS . Keywords: DIGEST AUSTRALIA BUSINESS

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RIO TINTO LIMITED - ASX RIO
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ROYAL DUTCH SHELL PLC
BP PLC
EUROPEAN COMMISSION

BHP BILLITON LIMITED - ASX BHP
RIO TINTO LIMITED - ASX RIO