Suitor Hochtief warns of Leighton job cuts
Hochtief, the majority shareholder of Leighton Holdings, has warned that jobs in the Australian group's 56,000-strong global workforce may be cut and operating brands such as John Holland and Thiess merged or ditched as it urges investors to accept its $1.2 billion takeover offer, according to the Sydney Morning Herald.
“As a result of the general review by Leighton already under way, some employees may become redundant,” Hochtief said in its bidder's statement.
Hochtief, which last week secured the recommendation of Leighton's board after lifting its initial bid 35¢ to $22.50 per share for up to 74% of the construction group, also flagged plans to change the structure of Leighton's five operating companies after reviewing its business model.
The review could change the way Leighton Contractors, Thiess, John Holland, Leighton Asia, India and Offshore and Leighton Properties are managed and alter “'the number and functions of employees”' as divestments of assets and businesses are considered, Hochtief said.
Rio Tinto fears exorbitant tax compliance costs
Rio Tinto has expressed concern about the lack of international co-operation on tax transparency laws, saying the multitude of new legislation could send compliance costs soaring, according to the Australian Financial Review.
Nickel's run rekindles sale hope
Surging nickel prices have boosted interest in a planned sale by Chinese-controlled MMG of its mothballed Avebury nickel mine on Tasmania's west coast, which was developed at a cost of $880 million, according to The Australian.
Nickel's price surge - brought on by Indonesia's export ban on laterite nickel ores - has already prompted BHP Billiton to put out the feelers on a sale of its West Australian nickel business, valued at up to $1 billion, because of the strategy of chief executive Andrew Mackenzie to focus on the “four pillars” of iron ore, coal, copper and petroleum.
