Today's Business Headlines

Rio stock set to soar on back of BHP takeover offer
Rio Tinto shares are set to rocket when trading resumes on the Australian sharemarket this morning after fellow miner BHP Billiton revealed it had put a $400 billion takeover proposal to its fellow rival. The West

Fortescue on back foot over director, auditor
Fortescue Metals Groups has been forced to defend the re-election of non-executive director Geoff Brayshaw amid shareholders concerns about his link to the iron ore company's auditors BDO Kendalls. The West

AGL in hot seat in pay revolt
AGL Energy shareholders have reacted angrily to a $5.5 million pay increase to sacked CEO Paul Anthony. The Australian

Westpoint investors keep hopes in check
Westpoint investors have been warned not to get too excited about the prospect of financial recovery due to ASIC's legal action. The Fin Review

Wesfarmers chief quick to take control of Coles
Wesfarmers boss Richard Goyder yesterday played down concerns that the group's acquisition of Coles might disrupt the rest of its operations as he quickly parachuted more senior executives into top posts at the newly acquired retail empire. The West

THE WEST AUSTRALIAN
BHP Billiton revealed last night it had recently put a takeover proposal to fellow mining giant Rio Tinto but Rio had rejected the offer.

John Howard has gone on the offensive following the Reserve Bank's decision to lift interest rates, saying Labor's alternative economic vision would cost up to 400,000 jobs.

At least a third of WA's stone fruit crop, worth more than $8 million, has been wiped out by unfavourable weather raising fears of price rises and late season shortages.

Business: Rio Tinto shares are set to rocket when trading resumes on the Australian sharemarket this morning after fellow miner BHP Billiton revealed it had put a $400 billion takeover proposal to its fellow rival.

Fortescue Metals Groups has been forced to defend the re-election of non-executive director Geoff Brayshaw amid shareholders concerns about his link to the iron ore company's auditors BDO Kendalls.

Wesfarmers boss Richard Goyder yesterday played down concerns that the group's acquisition of Coles might disrupt the rest of its operations as he quickly parachuted more senior executives into top posts at the newly acquired retail empire.

Having spent $460 million only five years ago to become one of WA's dominant gold producers, Harmony Gold Mining has ended an ultimately unsuccessful expansion strategy with the sale of its last assets at Mt Magnet.

ASIC revealed yesterday it planned to launch an array of legal actions in a bid to recover some of the $300 million-plus feared lost in the collapse of Perth-based property developer Westpoint.

THE AUSTRALIAN FINANCIAL REVIEW

Page 1: Prime Minister John Howard has used a rise in full-time employment as proof the government can be trusted with the economy despite rising interest rates. The trend toward in-house lawyers for companies is costing law firms. Former ALP leader Mark Latham has called the election "a Seinfeld election, a show about nothing" and criticised both major parties for pandering to bourgeoise greed.

Page 3: Workplace Relations Minister Joe Hockey could be called upon to use powers under Work Choices to halt a threatened QantasLink pilot strike.

Page 4: Westpoint investors have been warned not to get too excited about the prospect of financial recovery due to ASIC's legal action.

World: French president Nicholas Sarkozy has warned the US over "economic warfare" with their falling dollar hurting the EU.

Markets: The Australian sharemarket lost its biggest one day fall in almost three months as investors ditched financial and resource stocks.

THE AUSTRALIAN

Page 1: Toyota, Ford, GM Holden and Mitsubishi have warned the government that their businesses could close, costing at least 7,000 jobs in Melbourne and Adelaide.

Business: AGL Energy shareholders have reacted angrily to a $5.5 million pay increase to sacked CEO Paul Anthony.