James Packer resigns from Ten Board, GDP up 0.7% in December quarter: Midday Roundup

James Packer has resigned as director of Ten Network Holdings effective immediately, the company announced this morning after it emerged from a trading halt.

The company has also announced Seven Media Group chief sales and digital officer James Warburton will take over Packer’s role from July 14.

“James is a high calibre media executive with an enviable track record in television and digital media sales,” chairman Brian Long said in a statement.

His appointment was also welcomed by acting chief Lachlan Murdoch, who said that, “I also know [James] will lead this business with great success”.

No reasons were given for Packer’s departure.

GDP grows 0.7% in December quarter

The Australian economy grew by 0.7% in the fourth quarter of 2010, according to the latest figures from the Australian Bureau of Statistics, in line with economists’ expectations.

GDP rose to 0.7% in the fourth quarter, up from 0.2% in the September quarter. On an annual basis, growth was 2.7%.

The ABS found the main contributors to GDP were machinery and equipment and inventories, while non-dwelling construction activity was the largest negative contributor.

Westfield announces board changes

Peter and Steven Lowy have been named as Westfield’s joint chief executives as part of a number of changes to the company’s board.

Westfield also announced that chairman Frank Lowy will become a non-executive chairman, with David Lowy and David Gonski to stand down as directors at the next meeting on May 25.

“I am healthy and committed and I will continue to contribute to the group which has been my life for more than 50 years,” Frank Lowy said in a statement.

“The time is right for these moves… they clarify my on-going role and put the leadership of the group in the best position to make the most of the exciting growth opportunities ahead.”

Austar shares gain 25% on acquisition talks

Foxtel had discussions with Austar shareholder Liberty Global about a possible takeover offer, the regional Pay-TV operator has said.

“Austar understands that verbal discussions have taken place between Foxtel and Liberty in relation to a possible acquisition of Austar,” Austar said in a statement.

The news has sent Austar shares up nearly 25% to $1.41 this morning.

The announcement comes after a report in the Australian Financial Review claimed that News Corp and Telstra had agreed to a $2 billion bid for Austar.

Shares open flat on weak US leads

The Australian sharemarket has opened flat this morning after a weak night on US markets, where concerns are continuing over the ongoing political turmoil in Libya.

The benchmark S&P/ASX200 index dropped 37 points or 0.77% to 4789.3 at 12.10 AEST, while the Australian dollar also opened lower to $US1.01.

AMP shares fell 1.12% to $5.29, while Commonwealth Bank shares fell 1.21% to $52.40. Westpac fell 0.99% to $23.04, as ANZ shares fell 1.12% to $23.75.

Government clears AMP, AXA deal

The Government has approved the merger proposal from AMP for AXA Asia Pacific Holdings in a deal worth $13 billion.

Conditions of approval included maximum redeployment opportunities for staff, and access to entitlements.

Treasurer Wayne Swan said in a statement the deal would enable more investment in AMP bank, which would enable more competition in the mortgage market.

“The combined strength of AMP and AXA AP, with a larger consolidated balance sheet and broader capital base, will allow the merged entity to compete vigorously with the major banks across both the Australian wealth management and banking sectors,” Swan said in a statement.

SEC charges Goldman executive

The United States Securities and Exchange Commission has charged a former Goldman Sachs director who leaked details to a fund manager about Warren Buffet’s plan to invest $US5 billion in the bank.

Rajat Gupta is accused of making the tip via a phone conversation before an announcement was made to the public.

“Gupta was honoured with the highest trust of leading public companies, and he betrayed that trust by disclosing their most sensitive and valuable secrets,” SEC enforcement chief Robert Khuzami said in a statement.

“Directors who violate the sanctity of board room confidences for private gain will be held to account for their illegal actions.”

Bernanke says oil woes won’t hurt economy

US Fed chairman Ben Bernanke has said the latest surge in oil prices won’t hurt the economy as long as they are not ongoing.

Bernanke told the US Senate Banking Committee that there is more evidence the economy is growing, and that there is momentum in the recovery, but that job growth is still too slow.

The Dow Jones Industrial Average fell 169 points or 1.39% to 12,056.96 overnight.