Tinkler exploring funding alternatives for Whitehaven takeover

Mining magnate Nathan Tinkler may have a mezzanine financing option up his sleeve for his proposed privatisation of Whitehaven, according to the Australian Financial Review.

This could help fill in a gap if some members of his group of 48.3% that gave provisional support to take unlisted scrip such as AMCI, First Reserve and JCP Investment Partners decide they prefer cash.

Whitehaven Coal chief executive Tony Haggarty is said to be highly confident that Tinkler can get the nearly $A900 million of equity together.

It’s believed Haggarty played down the idea of much Japanese backing emerging, as have others in the market in recent days. The thinking is that parties like Noble Group are more likely to help kick in equity.

IMF puts Chinese growth at steady 8%

The International Monetary Fund expects China's economic growth to moderate at 8% this year, but warns significant risks remain because of the intensifying strain brought on by the financial crisis in Europe, according to the Sydney Morning Herald.

In a report released yesterday, the IMF said economic growth in China, in theory, could fall as much as 4 percentage points if global growth slowed by 1.75 percentage points.

But it said the Chinese government had ample fiscal ammunition at its disposal should the worsening global economic situation affect its growth targets. It said China remained on track for a ''soft landing'' and expected economic growth to reach 8.5% next year.

Barring further shocks to farm supply, the fund said inflation should stay between 3 and 3.5% this year and fall below 3% next year.

Regulations, tax 'need to be competitive'

Australia needs a globally competitive regulatory and tax regime to pursue growth in the Asian century, with a new report outlining that foreign direct outflows will reach $US400 billion by 2020 for the nine rapid-growth markets in East and Southeast Asia, according to The Australian.

Ernst & Young's report, which surveyed more than 600 business executives from organisations based in East and Southeast Asia, found that many Asian companies were targeting second-tier rapid-growth markets in Asia for growth, while other cash-rich Asian companies were looking at Europe's cheap assets.

Electricity price hikes being reviewed

The Council of Australian Governments has expressed concern over recent massive electricity price hikes and expects a series of reviews to be finished by the end of the year, according to The Australian.

With a large proportion of the price increases being driven by investments in transmission networks and distribution charges, the meeting asked energy ministers to focus reviews on "achieving efficient future investment which does not result in undue price pressures on consumers and business".

COAG asked its taskforce handling the issue to provide advice to it by late this year "on any additional action required to deliver a regulatory framework that promotes a competitive retail electricity market, including appropriate support for vulnerable customers, and efficient investment".