Australia’s number-two gold miner, Oxiana, has
appointed Macquarie Bank as its defence adviser amid intensifying
speculation of a hostile takeover bid from Swiss resources giant
Xstrata that could reach $2 billion, reports The Australian.

The Fin Review reports that Federal cabinet will tomorrow consider a
$3 billion package of communications investment and regulatory reforms
aimed at clearing the way for the full sale of Telstra. Also in the
AFR, James Hardie
Industries has conceded it will miss this month’s deadline for
finalising an agreement with the NSW government to fund an estimated
$1.68 billion of asbestos liabilities, forcing it to delay plans to give
directors a pay rise and make new board appointments.

Macquarie Bank is working on a multi-billion dollar bid for the
London Stock Exchange, reports TheSMH. While it has not yet made a formal approach, the bank met LSE
representatives two months ago, according to reports out of London.

And The Age reports that the Federal Government will have to “significantly” improve its
support for research and development if the country is to halt the
slide in exports of manufactured goods, according to a new study. Also in The Age, Leon Gettler reports that Australia has become one of the first countries to baulk at the
implementation of the international accounting rules that were
supposed to attract foreign investment and encourage local
companies to compete offshore.