Seven loses C7 appeal, Shares higher: Economy Roundup

Seven Network has lost its bid to appeal a judgement made against a number of parties regarding its failed sports channel C7 in 2002.

Seven had appealed against the decision made in 2007 by Justice Ronald Sackville to dismiss action taken by Seven against News Limited, Publishing and Broadcasting, Telstra, AFL and Channel Ten over the channel.

“The court agrees with the trial judge’s conclusions that the appellants did not establish that the respondent’s conduct was likely to have the effect, or have the effect, of substantially lessening competition in the retail pay television market,” the summary of the judgement said. “The court also agrees that the appellants failed to establish an anti-competitive purpose.”

The channel collapsed after it failed to gain the rights to broadcast AFL and NRL games, while it also failed to reach Foxtel’s channel platform.

“Seven Network Limited is considering the 340 page judgment of the full Federal Court in its pay television access case in which Seven’s appeal was dismissed today,” the company said in a statement.

Shares open higher after Wall Street boost

The Australian sharemarket has opened 1.5% higher today after good housing data released in the US boosted Wall Street stocks to a 14-month high.

The benchmark S&P/ASX200 index was up 59.1 points or 1.25% to 4778.1 at 12.05 AEST, while the Australian dollar also opened higher to US92c.

ANZ shares increased by 1.4% to $22.28, while Commonwealth Bank shares also moved 1.1% higher to $54.42. Westpac gained 1.3% to $24.50, while NAB gained 1.1% to $28.87.

Australia’s largest steel manufacturer Bluescope is set to increase its annual capacity at the Cilegon plant in Indonesia to 265,000 tonnes – more than double its current rate.

Managing director and chief executive Paul O’Malley said yesterday in a statement the restart of construction at the plant will see it in commission in 2011. Asia chief executive Sanjay Dayal said market conditions had improved, allowing the company to make the target.

“Since May 2009, our existing metal coating line has been operating at full capacity and we have been importing finished steel from our other operations in the region to meet Indonesian customer demand,” he said in a statement.

“We believe that now is the right time to complete this important project and boost our capacity in this key market.”
Perpetual reaffirms 2010 guidance

Meanwhile, fund manager Perpetual has reaffirmed its guidance for the first half of the 2010 financial year, and also said it will continue to look for acquisitions.

The company said it expects underlying profit after tax of between $30-40 million, and about $40-50 million in net profit after tax.

According to a presentation given by chief executive David Deverall yesterday, the company said client investor confidence is improving, and that its guidance will be met if current performance in equity markets continues.

Metcash chief executive Andrew Reitzer has said the company is a “natural fit” for hardware chain Mitre 10, according to The Australian.

The comments come as private equity group Anchorage Capital has also expressed interest in taking over the group.

The most important thing for a Mitre 10 member, I would imagine, is that over the next 10 to 20 years they have a good solid system supported by a strong wholesaler that can invest in systems and brand-building and then they’ll have a great business,” Reitzer said.

“Somewhere between 60 and 100 of Mitre 10’s 450 stores being owned by IGA supermarket operators – creating a ready-made pool of shareholders who could testify to the quality of the Metcash business model.”

GM fires chief executive Henderson

The board of directors of auto giant GM has fired chief executive Fritz Henderson, saying it is looking for a new vision for the company as it continues on a restructuring plan.

“The board decided – and Fritz agreed – that given where we are, it was time to make some changes,” GM spokesman Chris Preuss told reporters.

The company’s future has been called into question over the past year, but it has been able to survive due to massive assistance from the Obama administration. Henderson’s appointment was a controversial one, after his recommendation by Obama made some question the amount of intervention the Government had in private industry.

On Wall Street, stocks grew to a 14-month high as new data showed manufacturing activity expanded for a fourth consecutive month. The Dow Jones Industrial Average gained 126.74 points, or 1.23%, to end at 10,471.5820091202-seven-loses-c7-appeal-shares-higher-economy-roundup