THE NEWS WRAP: Seek to float its Chinese subsidiary

Seek has unveiled plans for a listing of its Zhaopin jobs site in China, in which it currently holds an 80% stake.

 

Seek chief executive Andrew Bassat says listed companies find it easier to attract and retain quality staff, with the Chinese government also treating listed companies differently to privately held entities.

 

“We are convinced that there is a real benefit to being listed rather than being private. There’s a status associated with it,” Bassat says.

 

“We have become convinced that what is right for the business is an IPO and we’ll try to do that in a way that makes it right for Seek.”

 

ABS increases its forecast for business spending

 

The Australian Bureau of Statistics has increased its forecast for business spending after new figures showed businesses increased capital expenditure during the September quarter by 3.6% to $40.7 billion.

 

TD Securities chief economist Annette Beacher told the ABC the ABS figures, a 3.4% increase on its previous estimate, suggest strong growth outside the mining and manufacturing sectors.

 

“The Reserve Bank is looking for services investment to pick up, and that is what is in this report,” Beacher says.

 

“From previously expecting a fall of 3% to now expecting an increase of 3%. So this should allay any fears that investment is shrinking across all sectors.”

 

Murray Goulburn churns up a higher bid for Warrnambool

 

Dairy co-operative Murray Goulburn has increased its offer for Warrnambool Cheese and Butter, trumping rival bids from Bega Cheese and Canadian food giant Saputo.

 

Murray Goulburn is now offering $9.50 cash per share, trumping Saputo’s offer of $9 per share plus 20 cents per share when Saputo reaches 50% ownership.

 

“We have gone through this rigorously and prudently, we still believe that this will add value from day one to the farm gate milk price, otherwise we won’t proceed with it,” Murray Goulburn managing director Gary Helou says.

 

Overnight

 

The Dow Jones Industrial Average is up 0.15% to 16097.33. The Aussie dollar is up to US91.17 cents.

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