http://www.smh.com.au/news/business/awb-suspends-shares-after-government-veto/2006/12/05/1165080927900.html
AWB suspends shares after Government veto
December 5, 2006 - 3:40PM
"Shares in monopoly wheat exporter AWB Ltd are in a trading halt as the company assesses the impact of a Federal Government decision to take away its veto on bulk wheat exports for six months.
Prime Minister John Howard said today that the government will rush legislation through parliament this week to transfer the wheat export veto power to Agriculture Minister Peter McGauran, from AWB International (AWBI), for this year's crop.
"The trading halt is requested as the company needs to assess the impact of the decision made by the federal government today to transfer the bulk veto to the Minister for Agriculture for six months," AWB said in a statement to the Australian Stock Exchange.
"The company requests that the trading halt lasts until the company makes an announcement regarding the impact of this decision."
AWB shares were trading 10 cents, or 3.6 per cent, lower at $2.68 when they were placed in the trading halt.
Western Australian-based grains handler and marketer CBH Group today welcomed the Federal Government's move, saying it was the first step towards significant reform of wheat marketing arrangements.
"We have a view that this is the first step in reforming wheat marketing arrangements and hopefully will give growers a chance to get some alternative pathways to markets,'' CBH Group corporate affairs manager Rhys Ainsworth said.
The Government will spend the next three months negotiating with the industry about permanent changes, Prime Minister John Howard says.
Mr Ainsworth said CBH was keen to take part in the consultation process announced by the federal government.
"We will certainly be putting forward a case that suggests that we need a system that allows the CBH Group to export wheat direct to its own flour mills (overseas) if it can demonstrate enhanced value,'' Mr Ainsworth said.
But CBH had had no direct talks with the government yet on what new wheat marketing arrangements should look like.
CBH Group would be seeking to re-submit an application for bulk export consent for two million tonnes of wheat, bypassing AWB.
"We will work through that process once we get a better sense of what these new guidelines are going to be,'' Mr Ainsworth said.
Barley and other grains handler and marketer ABB Grain Ltd was not immediately available to comment on today's move by the Federal Government."
AAP
AWB suspends shares after Government veto
December 5, 2006 - 3:40PM
"Shares in monopoly wheat exporter AWB Ltd are in a trading halt as the company assesses the impact of a Federal Government decision to take away its veto on bulk wheat exports for six months.
Prime Minister John Howard said today that the government will rush legislation through parliament this week to transfer the wheat export veto power to Agriculture Minister Peter McGauran, from AWB International (AWBI), for this year's crop.
"The trading halt is requested as the company needs to assess the impact of the decision made by the federal government today to transfer the bulk veto to the Minister for Agriculture for six months," AWB said in a statement to the Australian Stock Exchange.
"The company requests that the trading halt lasts until the company makes an announcement regarding the impact of this decision."
AWB shares were trading 10 cents, or 3.6 per cent, lower at $2.68 when they were placed in the trading halt.
Western Australian-based grains handler and marketer CBH Group today welcomed the Federal Government's move, saying it was the first step towards significant reform of wheat marketing arrangements.
"We have a view that this is the first step in reforming wheat marketing arrangements and hopefully will give growers a chance to get some alternative pathways to markets,'' CBH Group corporate affairs manager Rhys Ainsworth said.
The Government will spend the next three months negotiating with the industry about permanent changes, Prime Minister John Howard says.
Mr Ainsworth said CBH was keen to take part in the consultation process announced by the federal government.
"We will certainly be putting forward a case that suggests that we need a system that allows the CBH Group to export wheat direct to its own flour mills (overseas) if it can demonstrate enhanced value,'' Mr Ainsworth said.
But CBH had had no direct talks with the government yet on what new wheat marketing arrangements should look like.
CBH Group would be seeking to re-submit an application for bulk export consent for two million tonnes of wheat, bypassing AWB.
"We will work through that process once we get a better sense of what these new guidelines are going to be,'' Mr Ainsworth said.
Barley and other grains handler and marketer ABB Grain Ltd was not immediately available to comment on today's move by the Federal Government."
AAP