James Hardie has said it will appeal a Federal Court decision upholding a ruling the company pay back taxes of about $339 million.
The company said its subsidiary, RCI, will appeal to the Full Federal court after the decision was upheld. The court found RCI attempted to avoid paying taxes when moving ownership of US subsidiaries.
The company also said it will stay within its debt covenants if the charge is handed down.
“However, except for quarterly payments by RCI of interest on the unpaid balance of the amended assessment (being $US168.8 million ($A184.3 million), no cash will be required to be exchanged between RCI and the ATO until the matter has been ultimately resolved,” the company said in a statement.
It also added it will update the market about the charge when its second quarter results are announced on15 November, but no further comments will be provided until then.
As reported by the Australian Financial Review, private equity groups Kohlberg Kravis Roberts and TPG have held discussions regarding the purchase of the Foster’s wines division.
The report claims both are still deciding whether to proceed together or separately. Both companies worked together in 2007 to takeover Texas-based group Energy Future Holdings.
Meanwhile, QR National has launched the preregistration phase for one of the country’s largest public share offers, with investors able to preregister for the IPO until 8 October.
Queensland Treasurer Andrew Fraser told a teleconference yesterday the state government will retain a stake of between 25-40% in the company.
“The pre-registration process will also include a number of incentives that will include retail investors being offered the opportunity to participate at a discount to institutional investors,” he said.
“We have indicated in the past that employees of four years of QR National will be provided with $1000 worth of shares. That’s part of the industrial relations that we’ve agreed (to).”
The Australian sharemarket has opened lower today despite a positive lead from Wall Street last week where three indices closed higher.
The benchmark S&P/ASX200 index was down 24 points or 0.53% to 4614.4 at 12.30 AEST, while the Australian dollar was down to US93.7c due to rumours of an IMF bailout in Ireland.
ANZ shares fell 0.4% to $23.74, while Commonwealth Bank shares lost 0.9% to $52.33. NAB shares lost 1% to $25.70 while Westpac fell 0.5% to $23.29.
Meanwhile, HSBC has named Paul Bloxham as its new chief economist for Australia and New Zealand. Prior to his appointment Bloxham worked in the RBA economic analysis department for 12 years.
“Paul Bloxham joins HSBC with a strong understanding of Australian macroeconomic policy formulation and comprehensive knowledge of international economic dynamics that affect it,” HSBC chief executive Paulo Maia said.
In Canberra, opposition frontbencher Christopher Pyne has said the coalition could change its broadband policy following its defeat at the election. He noted Malcolm Turnbull’s appointment as communications spokesman, saying he is sure there will be changes as necessary.
“In comparison, he’ll be promoting the coalition’s policy and I’m sure there will be refinements to all coalition policies over the coming months, and if necessary years,” he told ABC TV yesterday.
“You wouldn’t expect our policies in 2010 to be precisely the same as 2013,” he said. “Refining means ensuring that our policies remain fresh, up-to-date with existing circumstances and picking up the aspirations and hopes of the Australian people.”
Computershare founder Chris Morris has joined Webfirm as a non-executive director, according to a statement provided to the ASX. Morris is the company’s largest shareholder.
“Chris brings exceptional understanding of the needs of growing companies, their investors and stakeholders,” Webfirm chairman Adrian Giles said. “His knowledge and experience of growing Australian IT companies to be global will be of great assistance with our plan for international expansion of the Adslot business.”
In China, new data published by the People’s Bank shows capital flowing into the country increased during August to its highest point since April. The new “Position for Forex Purchases” report shows the central bank and other Chinese institutions spent $US36 billion in order to absorb foreign exchange coming in to the country.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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