Qantas Airways Ltd today announced the finalization of 14 months of talks with its engineers 3% increase in annual pay backdated to January 2007. The engineers had been asking for a 5% pay increase.

The company also agreed to make greater company contributions to pension funds. The airline will increase pension contributions to at least 10% of workers'' salaries, 1% above government-mandated minimum of 9% and change the number and spread of part- time employees.

The company said the deal was subject to a formal vote of the Australian Licensed Aircraft Engineers Association''s 1,600 workers at Qantas. The airline has more than 5,000 domestic flights a week to 57 destinations.

Qantas shares fell 2.1%. Qantas last year indicated that it was expecting record profits after flying more domestic passengers. Pretax earnings were due to rise by 40% to $1.44 billion for the year ending June.

Consolidated Media Merger Update

Consolidated Media Holdings Ltd says it would open its books to its suitor to allow it to conduct due diligence. Illyria, which is owned by Lachlan Murdoch and its equity partners, are seeking to form a 50/50 joint venture with Cons Media shareholder, James Packer’s Consolidated Press Holdings. They have offered $3.3 billion in cash and stock for the company.

Gainers and Losers

Of the ASX 200 index shares, Boom Logistics led the gainers with a rise of 8% followed by increases in Macarthur Coal of 5.4%, in Sunland Group of 3.6%, Queensland Gas in of 3.2%, and in Singap Telec of 3%.

Of the ASX 200 index stocks, Valad Property led the decliners with a fall of 18% followed by losses in AED Oil Limited of 10.1%, in Centro Retail of 9.6%, in Centro Properties of 9.3% and in Bradken of 8.1%.

Mitsubishi Plant Closure

About 1,000 Mitsubishi Australia workers will be jobless next month after the company announced today that it will close its Adelaide factory at the end of March.

Mitsubishi management told reporters that the closure of the Tonsley Park factory is a commercial decision, forced by the high Australian dollar and falling sales for the Adelaide-built Mitsubishi 380 model.

The Federal Government announced a $50 million package to help Mitsubishi workers affected by the closure of its South Australian plant. The $50 million package is made up of $35 million from the Federal Government, $10 million from the South Australian Government and Mitsubishi would contribute $5 million.

BHP Earnings Estimate

Analysts have indicated that they are looking forward to a strong interim profit announcement by mining giant BHP Billiton tomorrow. The interim results were expected to eclipse the previous corresponding result of $6.84 billion. Analysts’ earnings forecast range from the low of $6.9 billion to $8.8 billion.

ABN Amro analyst Warren Edney told reporters that he was forecasting a profit of $6.99 billion ($6.3 billion) and that investors would be looking for an update by the resources giant on impact of flooding in Queensland on its coal operations and power issues in South Africa.

Heavy rain in central Queensland forced the closure of a number of coal operations last month, while electricity shortages in South Africa have disrupted mining and smelting operations.


Murchison Bid for Midwest Expires

Murchison Metals Ltd has thrown in the towel in its $900 million takeover bid for Midwest Corporation Ltd. The company has however said it would not be averse to a counter offer by its rival.

Murchison managing director Trevor Matthews told reporters that the company would also consider a scrip-based merger as their shareholders would still participate in a much bigger asset base and a much bigger, more certain development.

Murchison''s bid expired on Tuesday, leaving it with a 4.8% stake.

Matthews also said that the company was considering divesting its stake in Midwest but cast doubt over the success of China''s Sinosteel Corporation bid. Sinosteel has offered to buy Midwest for $1.19 billion. Murchison closed up two cents to $3.98, while Midwest finished down 17 cents to $4.95.

Global engineering services provider, Ausenco Limited today announced that it has agreed to acquire multi-discipline engineering services business, the Pipeline Systems Incorporated group.

PSI has the leading global position in the design and delivery of slurry pipeline transport systems including long distance slurry pipelines and tailings disposal systems. The acquisition complements Ausenco''s mining and minerals processing engineering services business and provides diversification into the process infrastructure-engineering sector.

Australian Dollar - Unchanged

The dollar closed firmer but off its overnight highs as today''s interest rate hike by the domestic central bank garnered little response from investors. At the close the Australian dollar was trading at US$0.9074/77, up from yesterday''s close of US$0.9047/52.