Today's Business Headlines

Lehman crash sparks fears of world slump
The risk of a worldwide recession deepened yesterday after the financial client toppled giant US investment bank Lehman Brothers and threatened the survival of the world's biggest insurance company, AIG. The Australian

Barnett hangs axe over major projects in search for Grylls' millions
All of WA's major capital works projects, including the proposed $1.1 billion outdoor stadium, the $500 million East Perth museum and the $350 million city foreshore project, would be reassessed in the light of falling revenues and the Nationals' demand for more money to be spent in the regions, premier-elect Colin Barnett conceded yesterday. The West

Uranium stocks up as Libs take power
Companies with uranium projects in Western Australia bucked the downward market trend yesterday to record significant gains as investors embraced the new state government's pro-uranium policy. The Australian

Falcone succumbs to Sinosteel
New York hedge fund manager Phil Falcone last night caved in to Sinosteel Corp's pressure and accepted the Chinese suitor's $1.4 billion takeover bid for his Midwest Corp stake. The West

Liberal leadership comes to head
Embattled Liberal leader Brendan Nelson last night ambushed rival Malcolm Turnbull by throwing open the leadership for a vote this morning. The Age

THE WEST AUSTRALIAN:

Page 1: Malcolm Turnbull stands to become the Liberal Party's third federal leader in 10 months today after Brendan Nelson sought to end the debilitating speculation on his future with a party room ballot this morning.

All of WA's major capital works projects, including the proposed $1.1 billion outdoor stadium, the $500 million East Perth museum and the $350 million city foreshore project, would be reassessed in the light of falling revenues and the Nationals' demand for more money to be spent in the regions, premier-elect Colin Barnett conceded yesterday.

Fresh fears gripped global financial markets last night after 48 hours of extraordinary upheaval on Wall Street which saw the collapse of one of world's most prestigious investment banks and the sale of another, while one of America's biggest insurers called for a $US20 billion ($25 billion) lifeline.

Page 5: Outgoing Treasurer Eric Ripper has emerged as the favourite to take over as Labor leader, with caucus expected to make its final decision when it meets today at Parliament House.

Page 6: Union demands for a share of the Nationals' royalties for regions plan threaten to blow a hole in the initiative before the scheme even gets off the ground.

Business: World central banks, including the Reserve Bank, yesterday pumped tens of billions of dollars into the financial system in support of markets wilting under Lehman Brothers' bankruptcy and the sale of Merrill Lynch.

Businessman Mick Shemesian wants to roll the board of Cape Lambert iron Ore because he opposes the cashed-up Perth miner's $250 million plan to buy into a Sierra Leone iron ore asset controlled by entrepreneur Frank Timis.

Uranium stocks soared and company promoters rushed to dust off plans to hunt for yellowcake in WA yesterday as the state's long-awaited uranium boom gained momentum.

New York hedge fund manager Phil Falcone last night caved in to Sinosteel Corp's pressure and accepted the Chinese suitor's $1.4 billion takeover bid for his Midwest Corp stake.

Phil Green, the architect behind Babcock & brown's rapid growth, has formally severed ties with the embattled infrastructure funds house, triggering a renewed share sell-off and raising concerns that fresh tensions are re-emerging among some of its bankers.

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: Bank of America will pay $US50 billion ($AU61 billion) to buy broking giant Merrill Lynch while Lehman Brothers was forced to file the biggest bankruptcy in history.

THE AUSTRALIAN:

Page 1: The risk of a worldwide recession deepened yesterday after the financial client toppled giant US investment bank Lehman Brothers and threatened the survival of the world's biggest insurance company, AIG.

Page 2: The NSW government was under pressure last night to bail out local councils that stand to lose a total of about $200 million in the bankruptcy of US investment bank Lehman Brothers.

Business: The global financial system has been rocked by the failure of investment bank Lehman Brothers and rival Merrill Lynch's $US50 billion ($62 billion) shotgun marriage to Bank of America to stave off doubts about its own survival.

The Australian sharemarket was hit hard yesterday as banking stocks slumped after US investment bank Lehman Brothers sought Chapter 11 bankruptcy protection and Merrill Lynch accepted a takeover offer from Bank of America.

Less than three weeks after being controversially installed as a non-executive director of Babcock & Brown, Phil Green - the man who oversaw the spectacular rise and fall from grace of the embattled company - has suddenly resigned from the board.

An independent report on Origin Energy counts on east-coast gas prices doubling in the next eight to justify its valuation of double BG Group's takeover offer.

Sinosteel is set to gain 100 per cent of iron ore miner Midwest after US investor Philip Falcone agreed to the $224 million sale of his shares into the Chinese company's hostile bid.

Companies with uranium projects in Western Australia bucked the downward market trend yesterday to record significant gains as investors embraced the new state government's pro-uranium policy.