Telstra delays vote on NBN, UN backs no-fly-zone for Libya: Midday Roundup

Telco giant Telstra has announced it will not be able to meet a July 1 target for a shareholder meeting on its proposed $11 billion deal with the Government over the National Broadband Network.

The company said negotiations are still ongoing, and while progressing well are still yet to be finalised, as some require government approval.

“Given this, we have now reached the point where a July 1 meeting is no longer practicable,” Telstra said in statement this morning.

“The company is currently looking at options for an alternative meeting date, including taking into account the full year results announcement requirements, and will advise shareholders once it is in a position to set the date of the meeting.”

The proposed deal will see Telstra hand over much of its infrastructure to the Government for use in building the NBN.

UN approves no-fly-zone for Libya

The United Nations Security Council approved a resolution permitting “all necessary measures” to protect a no-fly zone over the strife-torn country.

The vote passed with five abstentions, with the council saying that those involved in revolution must be protected.

It is understood the first air strikes could happen within hours. However, Libyan leader Moamer Kadhafi has vowed to stop the rebels.

Origin completes institutional funding

Origin Energy has competed the institutional component of its $2.3 billion raising with a 95% take-up rate, the company announced.

“The success of the institutional component of the equity raising demonstrates strong support for the company’s acquisition of the NSW energy assets which positions Origin as the leading Australian integrated energy company,” managing director Grant King said this morning.

The retail component of the raising will be opened on March 21.

Market recovers with strong US leads

The Australian sharemarket has recovered after a disappointing weak, with strong leads in the US suggesting fears over the Japanese nuclear crisis may have eased.

The benchmark S&P/ASX200 index was up 27 points or 0.61% to 4583.2 at 12.10 AEST, while the Australian dollar rose to US98c.

ANZ shares lost 0.04% to $22.44 as Commonwealth Bank shares rose 0.24% to $49.87. Westpac rose 0.04% to $22.35 as NAB lost 0.21% to $24.33.

Wesfarmers considers Premier sale

Wesfarmers has said it is considering selling off the Premier coal mine in Western Australia after having received some inquiries.

“There have been a number of enquiries regarding the purchase of the Premier Coal operation,” Wesfarmers Resources managing director Stewart Butel told AAP this morning.

“We feel that this is the right time to look at all options for the business ranging from business as usual to building an export-based operation to a joint venture with another party right through to the potential sale of Premier Coal.”

Butel said the process will be to determine “how other parties see the Premier Coal value proposition”.

US stocks rise on good economic data

Solid economic data in the United States has boosted investor hopes, with consumer prices rising at their fastest pace in 18 months during February.

The data from the Labor Department shows the consumer price index rose by 0.5% in February, the largest increase since June 2009. Energy price rose by 3.4%, while food prices rose by 0.6%.

The data provided investors with some hope on Wall Street, where the Dow Jones Industrial Average rose 161.21 points or 1.39% to 11,774.51.