REPEAT:Business News From The Australian Press Friday
Updated: Thursday, January 18, 2001 04:38 PM ET
U.K.-based Cable & Wireless PLC (CWP, news, msgs) is pressuring Optus independent directors by setting the clock ticking on Optus's financial support to insure an agreement is reached on its assets, reports the Australian. Optus independent directors hold the key to Optus' sell off as they will vote on the breakup of the company at a starting price of around A$15 billion. But source believe the ultimate power rests with parent company Cable & Wireless, which holds a 52.5% stake.
Pressure is mounting on Telstra Corp.'s (A.TLS, news, msgs) Asian partner, Pacific Century CyberWorks Ltd. (PCW, news, msgs), as investors desert the stock amid rising fears about its massive debt, reports the Australian Financial Review. As PCCW shares continue to fall, a new report by ABN Amro in Hong Kong has downgraded the stock to a reduce recommendation from add recommendation. It is the second downgrade by the broker in three weeks.
Telstra Corp.'s (A.TLS, news, msgs), new pricing package, including a rise in rental line charges, may increase its pretax profit by up to A$100 million in the next financial year, reports the Australian Financial Review. Analysts said the new charges would prove an "earnings buffer" for Australia's biggest telecommunications company.
Amatek Holdings will increase its annual revenue to more than A$1.3 billion following Thursday's confirmation of plans for a A$190 million merger with building products company Wesfi Ltd. (A.WFI, news, msgs), reports the Australian Financial Review. Amatek, which is backed by U.K.-based CVC Capital Partners (U.CVC, news, msgs), has agreed to pay A$2.12 a share to acquire all of the ordinary shares in Wesfi.
Village Roadshow Ltd. (A.VRL, news, msgs) will file the prospectus for the A$1 billion listing of its Austereo radio unit today, reports the Australian Financial Review. Village shares rose 11 cents to A$1.96 Thursday in anticipation of today's announcement, which is expected to show the company will sell about 45% of Austereo to raise about A$450 million.
-By Lilly Vitorovich, Dow Jones Newswires; 61-2-8235-2963; lilly.vitorovich@dowjones.com
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