The Sydney Morning Herald from Sydney, New South Wales, Australia • Page 28

THE SYDNEY MORNING HERALD TUESDAY, OCTOBER 8, 1996 BUSINESS 27 Hopes of housing upturn spark surge 'Run on Email shares Jitummtmt maM fcJ Peace, so now Sol can concentrate SOLLY Lew's decision finally to bury the hatchet with his old sparring partner Rodney Adler has sparked speculation that the privatisation of Premier Investments may move closer to the top of the Coles Myer deputy chairman's agenda. Market watchers were betting that after the sale of shares by Lew in FAI through Pru Bache's Tony Davis, who is making quite a name for himself after the Gutnick placements it could only be a matter of time before FAI unwinds its 14 per cent position in Premier. This would leave it open to Lew to make his move on a mop-up of Premier, in which he now holds a 40.98 per cent stake. It would also allow the exit of the other major Premier shareholder, Sir Ron Brierley's GPG pic, which owns just under 20 per cent The bid would cost Solly at least $45 million at current market prices but Premier has $32 million in the bank from the FAI sale. Premier shares rose 5c to 70c yesterday on the suggestion of a mop-up bid.

It would close the book on the painful history of Premier Investments, which has outlived its usefulness as a listed company. After all, it was the $100 million preference share issue to fund the increase in Lew's Coles Myer stake in the first place which led to the use of the vexed Yannon, which is at the heart of the controversy that could see Lew unseated from Coles Myer. It's a toss up as to what is more important to Solly: buying more Coles shares and securing his position at the retailer, or removing from the public arena the Premier company that has been the cause of so much angst over the past six years. Tom Hughes QC, "tasting the bile of litigious Yet more salaries IT IS hard to imagine taking home a purse of $1 million-plus every year but in the 1996 salary stakes there are many such winners, including the entertaining troupe from Village Roadshow. That old projectionist Roc Kirby taught them well, the top three in the cinema company 45-year-old chairman Robert Kirby, his 49-year-old brother John and hip md Graham Burke getting a payout of upwards of $1.1 million to $1.2 million each.

With box office takings at a high, the payouts were well up on the top brackets the year before. That's not to mention the proceeds distributed to the Village Roadshow Creative Trust, whose beneficiaries are Robert Kirby, Graham Burke and Greg Coote, "for the purpose of producing motion The trust earned $1.1 million. Making living in Bleak City a little less so, another Victorian-based executive in the money in 1996 was Foster's Ted Kunkel. The brewer made out a cheque for just under $1.4 million in 1996 for its top earner. Not to be outdone over in the West, the great conglomerate of Wesfarmers, run by Michael Chaney, paid out $1.26 million.

This was below the year before's $1.48 million, after a' drop in profits, but nonetheless would put him in good company with the BHP directors on his board. From dusk till dawn COUNTY NatWest's weekend farmer, Ken Allen, and his more agrarian-inclined wife Jill handed over the camp oven to their son Nicholas for the annual Labour Day weekend bush bash. The youthful stamina of Nicholas and his mates probably explains why there were only 10 fewer people lining up for the early cooked breakfast on Sunday morning than the 160-odd that partied into and beyond the wee hours just before. As Nicholas works in funds management with Deutsche and wife Yasmin is at stockbroker ANZ Securities, their party crowd was like their parents' in previous years full of George Street suits wearing the best that RM Williams could supply. Among those attending were Stuart Turner of Macquarie, David Nixon of Morgan Stanley and KPMG's Martin Blake.

EMILIYA Mr Packer Most of the Super League faithful were gathered for the event, which also included a surprise visit from Malcolm Turnbull, who dropped in to collect father-in-law Tom Hughes QC for a family dinner. The partying started early for Super League lawyers Atanas-kovic Hartnell, which held a pre-official party bash in its office. The Super League victory almost made it worth John and Felicity Atanaskovic missing out on their trip to Paris for the rare experience of watching the Prix de l'Arc de Triomphe with partner Tony Hartnell. The Atanaskovics got their racing fix yesterday by attending Metropolitan Day at Rand-wick. Felicity had a successful bet in league with Sir Tristan Antico, whom she said was charming and gorgeous.

Atta, whose new nickname among the Super League troops is "the Lexocet missile" (lex is Latin for law) was among the stayers at the Marriott, crawling into his Rose Bay bed sometime around dawn on Saturday. Building up Email managing director Mr Hanna, confident as the firm heads towards 2000. net earnings has been predicted. For the year to March 1996, it posted a 45 per cent decrease in net profit after abnormals to $55.1 million. Major appliances and building products were the hardest hit with margins falling from 4.5 per cent to 2.2 per cent and 10 per cent to 6.2 per cent respectively.

Stockbroking analysts have predicted a marginal rise for the year to March 1996 but predict a bigger gain in the following year due to the forecast pick-up in the building sector. The 1996-97 results will also be positively affected by a full-year contribution from the November 1995 Atlas Steel acquisition. Email's managing director, Mr John Hanna, said last week that while things were tough, he was confident the 50-year-old Orange plant would still be fully operational in the year 2000. Share price 3.50 September 9 to October 7 It is believed at least four stockbroking analysts have upgraded their forecasts for a variety of groups, including Email, as a consequence of the predicted increase in demand for housing products. Plumbing suppliers are one of ll 3.22 Wl If 3.14 3.06 Melbourne's airport bid the first sectors to show an uptick in orders should there be more homes being built.

Australian Bureau of Statistic figures last week showed total building approvals rose by a seasonally adjusted 1.6 per cent in August, which followed an 8.1 per cent rise in July. The ABS trend figures said home building approvals had bottomed in December 1995 and had been rising gradually. The encouraging trend spilled over to the sharemarket where fund managers turned their attention to cyclical stocks with an exposure to construction. According to stockbroking analysts, Email is one of the companies that has a "pure" exposure to the housing sector through its plumbing supplies and whitegoods. Email is due to release its half year report to September 30 on November 4 and an increase in CSR general manager corporate affairs Mr Brian de Boos said yesterday he was unable to comment because it was a holiday in NSW and he was unaware of the contents of the NZ proceedings.

Mackay director Mr Athol Harley issued a statement saying: Ve are pursuing the legal proceedings vigorously. We regard the legal process as an important step in restoring the proper competition in the refined sugar market. "At present, substantial losses are being incurred by all participants, a situation which cannot be sustained." Speaking from London last night, Mr Harley added: "The legal action isn't at the exclusion of commercial settlement. "The legal action is about bringing about as quickly as we can a realignment of the market so that participants in Mackay sues CSR subsidiary in NZ Party animals LACHLAN Murdoch kicked up his heels at the Super League party held at the Marriott Hotel on Hyde Park on Friday night, staying on till the early hours. The brightness of his mood was reflected in the striking cobalt blue shirt he wore trendy in New York this season.

Lachlan's boss Ken Cowley has managed to get over what he described as "very hurtful" remarks by Justice Burchett in the original Super League decision, although he was an early departure from the party. the legal proceedings vigorously." could be said people are talking, but there's been no discussions about a merger." Any merger would be scrutinised by the Australian Competition and Consumer Commission, because its predecessor, the TPC, blocked a proposed merger of Mackay and CSR three years ago. Mychasuk copped it sweet. Dishing it out KERRY Packer left no room for misunderstandings in any upcoming league negotiations, barking the order for a direct feed from the Channel Nine cameras at the Super League press conference to be beamed to him via the dish that sits on his lawn. We can only imagine the abuse hurled at the television set at the smiling face of News supremo Ken Cowley, florid with delight.

Meanwhile, Packer's ARL warrior Geoff Cousins retreated into the bunker, refusing to make a comment on the decision, in contrast to the loud aggressive pronouncements the Optus Vision chief made on the initial victory of the ARL only eight months ago. Cousins continued to be unavailable yesterday, with one of his flacks saying Cousins didn't want to talk to anyone just yet He was, no doubt, in the words of Super League counsel The City of Melbourne, Pratt Group and NatMut -a strong contender. 9 million available to invest in the airport, from a declared total of $190 million of funds on deposit National Mutual has considerably more than $150 million to spend, sources say, with the Pratt Group able to commit about $80 million. But as one bidding group rose yesterday, another dipped Melbourne-based Australian Airports Ltd (AAL) revealed that shopping centre developer the Gandel Group had left the consortium. AAL, whose members include Federal Government-owned AIDC and UK-based National Express, may now find it harder to raise the necessary funds for a strong bid.

AAL and Victorian Airports are two of seven major bidding Over 2000 lots Langton's-in 52 Pitt FINE Melbourne CLASSIC An outstanding wines at The Food Experience Friday 15th Phone for Sydney: Over 600 lots Melbourne: Sydney: Over 500 lots Melbourne: Over 500 lots Phone: 02 9310 groups lining up for Melbourne Airport ahead of Thursday's 4 pm deadline for expressions of interest The Federal Government and advisers will then choose which go to the next round of bidding. Melbourne Airport is expected to cost the winning bidder more than $1 billion, although more than half that sum is expected to be borrowed from local and overseas banks. The City's decision ends lengthy talks with several other potential partners, including Crown Casino operator Hudson Conway, which plans its own bid. Cr Deveson argued the City's bid was vital to the city's economic development, calling the airport "one of the most crucial elements for any city in the 21st The council's decision to bid has been criticised by independent councillor David Bardas, who earlier this year wrote to his colleagues urging that the money be spent within the council's inner-city boundaries. By MICHAEL SHARP Mackay Refined Sugars will sue CSR subsidiary New Zealand Sugar Corp for S8.9 million in the New Zealand High Court in a move which escalates the bitter battle between the two refined sugar producers.

Mackay's action, announced yesterday, alleges that CSR's NZ Sugar Corp engaged in a misuse of market power with the intention of eliminating Mackay as a competitor in the refined sugar market. Mackay stressed the NZ proceedings were separate from and in addition to its $60 million action against CSR in the Federal Court of Australia. In the Australian proceedings commenced on December 2, 1994 Mackay claimed CSR breached various sections of the Trade Practices Act, including misuse of market power and false and misleading conduct. By CAROLYN CUMMINS The market capitalisation of whitegoods manufacturer Email has jumped by more than $100 million, or 11 per cent, in the past three trading days as investors scramble to get positioned for the expected upturn of the housing market. Email's shares yesterday rose 10c to close at a 12-month high of S3.50, 36c more than they were fetching last Wednesday.

The run was so strong that Email's market capitalisation rose to $1 billion and the stock exchange asked the company whether there was any information not in the market. But Email yesterday replied it was unaware of any specific reason for the rise. "The company can offer no explanation why the price has moved to the extent it has," Email's company secretary, Mr Duncan Glasgow, said. Push on for AWA to return capital By MATTHEW KIDMAN Several large AWA shareholders, including Mr Reg Grundy's RG Capital, will push for the company to pay out its $64 million of cash reserves in the form of a capital return. The move could run into strong resistance from AWA's board, which is looking for a major acquisition to expand the group's gambling and wagering business.

AWA's board, under chairman Mr John Iliffe, has sold off all non-gambling assets over the last year, leaving the company with $64 million in cash and in the position to make purchases worth more than $100 million. The company's new managing director, Mr John Rouse, said last month following the sale of three divisions to Plessey Corp for $25 million, that AWA was looking to become a major player in the gaming machine manufacturing industry. This triggered speculation it was on the verge of buying the Melbourne-based Olympic group. But it is believed these discussions have stalled. It is understood that many shareholders are sceptical that AWA's management will be able to find the right sort of acquisition to deliver a strong return.

Among those Mr Hughes keen to see the money returned to shareholders is Mr Reg Grundy's RG Capital, which snapped up 14.9 per cent of AWA's shares in August. Mr Grundy's representative in Australia, Mr Tim Hughes, decided to buy the shares with a view to pushing for a disposal of all non-gambling assets and a capital return. AWA chief financial officer Mr Colin Henson downplayed the possible tensions, saying a capital return was not out of the question. "What happens with the cash depends on what the board decides in the coming months," he said. "One of those options may be to return the money to shareholders but no decision has been made." AWA's shares continued to climb yesterday, rising 2c to 97c.

Mr Harley "We are pursuing the industry can at least recover their costs again and, hopefully, make some money out of it." He also quashed rumours that CSR and Mackay were holding preliminary merger talks. "This is an industry where everyone's losing money, so there is a sense in which it ASC probe into coal group bid LANGTON'S By DAVID WALKER in Melbourne The City of Melbourne, Pratt Group and National Mutual have created a strong new contender in the crowded race for Melbourne Airport, swinging well over $300 million behind the previously obscure Victorian Airports Ltd (VAL). The high-profile Victorian-based combination of council, industrial company and funds manager has allied itself with VAL's Sydney-based organiser, Macquarie Bank, and other partners Manchester Airport and UK-based services company Serco. The Lord Mayor, Councillor Ivan Deveson, and the managing director of National Mutual Funds Management, Mr Sam Kavourakis, yesterday pitched the group as combining financial strength, operating skills and an understanding of Melbourne's economy. The substantially debt-free City of Melbourne is understood to have close to $100 TRADI Internet address: htTp7Avww.austrdde.pov.au Darryl McDonough, for Marsford, said Glendale had sent a letter to the ASC last month disclaiming any interest of the Marsford director in its AQC shares.

AQC has released a statement saying it would not rule out either the Marsford or Centennial bid at this stage. "It is in the interests of the shareholders that any and all offers be put to the shareholders of the company," AQC said. AAP Brisbane: The Australian Securities Commission has launched a Federal Court action against Hong Kong-based Marsford Investments Pte Ltd centring on a possible breach of a 20 per cent ownership ceiling in Allied Queensland Coalfields Ltd. Marsford launched a takeover bid for AQC on September 23, offering 70c a share through its stockbroker, Morgans Stockbroking Ltd. The ASC's action meant that, after the market's close on Friday, Marsford was prohibited by a court ruling from acquiring shares in AQC before the close of trading today.

ASC spokesman Mr Nigel Morris said yesterday that the ASC contended a Marsford director had a relevant interest in a parcel of AQC shares owned by Virgin Islands-based Glendale International Consultants Ltd which would have taken Marsford over the 20 per cent ceiling. Law firm Clayton Utz partner Mr WINE AUCTIONS Sydney Adelaide WINE AUCTION Falloon heads to US to bat for Australis auction and tasting of Penfolds Spirit Bond Magill Estate Wine Penfold Road, Magill, Adelaide November at 6.00 p.m. free Penfolds catalogue International Business Expo, Homebush Bay, 1 6 and 1 7 October Find out everything you need to know about the possibilities of exporting, direct from the experts, absolutely free. The Expo will feature representatives from more than 30 organisations, who are willing to share their first hand knowledge and wealth of practical experience. You can have private consultations with banks, international and local chambers, customs brokers, freight companies, government agencies, trade commissions, educational institutions, finance and insurance companies.

In addition, a series of short information sessions will be run. For more information please phone Austrade on (02) 9390 2044 or fax (02) 9390 2999. International Business Expo State Sports Centre, Australia Avenue Homebush Bay Wednesday, 1 6 October: 9am 8pm Thursday, 1 7 October: 9am 4.30pm An ANZ International Business Week Event Wednesday 16th October of Australian and Imported wine Fridaylst November of Australian and Imported wine HQS Call Now 13 30 30 8at to midnight (E.S.T.). 7 days. Australis has until the end of October to raise the fresh funds at which time interim funding of $US125 million is due to be repaid to the Toronto Dominion Bank.

Meanwhile, Australis has been attempting to dissuade Hollywood film studios from talking to Foxtel, the pay TV joint venture between Telstra and Mr Rupert Murdoch's News Corp. Foxtel has held talks with the studios in an attempt to gain the exclusive rights to the films when they come up for renegotiation in 2000. Australis at present holds the exclusive cable TV rights to the films and on-sells the programs to Foxtel. MATTHEW KIDMAN Publishing and Broadcasting finance director Mr Nick Falloon flew to the US at the weekend to head up a roadshow for Australis Media aimed at raising $US150 million ($189 million) through a bond issue. Mr Falloon will join Australis chairman Mr Rod Price and finance director Mr Geoff Kleemann in an effort to convince US investors to participate in the fund-raising.

Mr Falloon decided to make the trip after it was revealed last week PBL would invest million in equity to help Australis survive. His presence was also needed to explain the significance of Australis's satellite and microwave facility sharing venture with Optus Vision. Wednesday 4th December of Australian and Imported wine Wednesday 11th December of Australian and Imported wine Entries invited -Catalogue enquiries 4231 Fax: 02 9310 4236 Your home loan is PriorityffJH? association with Christie's Street Redfern 2016 AMU L'ilUk'C MI? AN AMP1 Priority One Financial Services. Approval subject to lending guidelines. AMPB COMPANY PriontyOfH 2137SMH.