AWE rejects oil and gas suitor Senex

SENEX Energy chief executive Ian Davies says he is no longer interested in a merger with AWE following the company's move to make preliminary dealings between the companies public.

AWE said it had rejected a $752 million takeover offer from fellow Australian oil and gas producer Senex in a statement to the ASX on Monday after it had already been reported in the media.

The offer significantly undervalued it, without an appropriate premium for control, said AWE.

Mr Davies told AAP the non-binding takeover proposal had only been a friendly and informal conversation opener.

"They saw fit to make it public and leak it that way," he said.

He said the door was shut on an offer now but did not completely rule out future discussions.

AWE complained in its statement that its shareholders would only be getting 47 per cent of the merged group's equity.

However AWE would be contributing 70 per cent of proven reserves, 90 per cent of production and 67 per cent of sales revenue and before tax earnings.

Mr Davies countered that he regarded Senex as contributing far more growth prospects through its onshore oil and gas assets in central Australia's Cooper Basin and coal seam gas assets in Queensland.

A merged company would be among the top five oil and gas companies on the ASX with a market capitalisation of $1.5 billion.

He said he regarded AWE and its mostly offshore assets in Australia, New Zealand and Indonesia as "ex-growth" but its strong cashflow made it attractive and would complement Senex's oil and gas growth prospects.

AWE said it had gone public because Senex had already started buying shares and it believes its shareholders should know that.

However Mr Davies said the company's stake was below three per cent and immaterial.

Senex's offer implied a price for AWE shares of $1.44.

That is above its current price, with AWE shares coming out of a trading halt on Monday and climbing 8.5 cents to $1.27 AEDT while Senex shares slumped 6.5 cents to 70.5 cents.

However AWE's shares are valued by analysts at above $2.

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Pressure grows for NSW pub lockouts

EMERGENCY service workers and doctors are demanding NSW government action to stop the carnage caused by alcohol-fuelled violence.

NSW confirmed it was the capital of drunken violence at the weekend, with 540 arrests during a trans-Tasman operation meant to curb the problem.

The NSW opposition is renewing its calls for a trial of reduced trading hours and lockouts in the state's licensed venues after the success of those measures in Newcastle.

The Last Drinks coalition, a group representing concerned emergency department staff, police and paramedics, has joined the chorus.

Its spokesperson, Australian Salaried Medical Officers' Federation president Dr Tony Sara, says the pressure is firmly on the government.

Dr Sara says a trial in select trouble spots would show positive results in a short time.

He said measures in Newcastle cut alcohol violence by 37 per cent and emergency department admissions by 26 per cent, so were worth a try in Sydney.

He challenged NSW Premier Barry O'Farrell to explain what harm a trial could do, believing the government was under the thumb of the powerful liquor lobby.

"How could it hurt?" Dr Sara told AAP.

"It might reduce profits a bit, but either they lose some money or we continue to have people hurt and maimed.

"I think the community comes before profits."

But Mr O'Farrell rejected calls for tougher laws, arguing authorities had done their part.

"Police and government agencies are doing their bit and the hotel industry, by and large, is responsibly getting on with their task," he told reporters on Monday.

"What we now need is for the community to come to the party."

NSW Opposition Leader John Robertson says police tell him privately they support tougher measures such as pub lockouts.

Police Commissioner Andrew Scipione agreed that cultural shift was crucial.

"Police will never arrest our way out of this problem," he said.

"If we don't start today we will lose a generation of young people to this love affair with alcohol."

Mr Scipione said a 23-year-old man who was punched and stomped on in front of dozens of revellers at Bondi Beach at the weekend was no longer in a critical condition.

The Australian Hotels Association NSW would not comment.

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Aurizon to cut rail fleet, cancel project

FREIGHT and coal haulage operator Aurizon will take a hit of almost $200 million as it cuts the size of its rail fleet and cancels a major Queensland project.

The company, previously known as QR National, is reducing its locomotive fleet by 28 per cent and cutting the number of wagons by 12 per cent in a bid to bring down fuel and maintenance costs.

Aurizon's downsizing will appear as an asset impairment expense of $130 million to $150 million in its accounts for the first half of the 2013/14 financial year.

The company will also incur a $47 million impairment on recent changes to several projects, including Glencore Xstrata's decision to stop the Wandoan project because of weakening thermal coal prices.

Aurizon had proposed a 210 kilometre Surat Basin rail corridor from the Wandoan mine in a joint venture with the Swiss multinational.

"There's not any job losses that are related to that," chief executive Lance Hockridge told reporters on Monday.

In July, Aurizon launched a second voluntary redundancy program in a bid to save $230 million by 2015.

Some 248 voluntary redundancies have since been accepted.

"I think the bulk of it is done," Mr Hockridge said.

More than 2,000 employees have left the company since it was privatised by the former Queensland Labor government in 2010.

Mr Hockridge said he was "cautious but confident" about the thermal coal sector, as well as the future of projects in Queensland's Galilee Basin, where Aurizon has agreed to develop a rail project for the GVK-Hancock joint venture involving billionaire Gina Rinehart.

Aurizon shares dropped two cents to $4.68.

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Kiwi extends gains over Aussie dollar

THE New Zealand dollar has extended its rally against its trans-Tasman counterpart as the divergence between the neighbouring economies makes New Zealand interest rates more attractive.

The kiwi rose as high as 92.49 Australian cents on Monday, the highest since October 2008, trading at 92.40 cents at 5pm in Wellington from 92.26 cents on Friday in New York.

The NZ dollar traded at 82.78 cents from 82.56 cents at 8am and 82.63 cents on Friday in New York.

The kiwi has been making fresh five-year highs against its Australian counterpart as the slowing economy in Australia and burgeoning local recovery underline the different stages of the interest rate cycle each nation's central bank is in.

New Zealand's Reserve Bank is keen on hiking rates next year, while Australia's is sitting on record-low rates to keep the stimulus coming.

Investors will be looking to see any hint of an easing bias when the minutes to this month's Reserve Bank of Australia policy meeting are released on Tuesday.

"Their central bank is quite determined to get the Aussie dollar lower to get a more sustainable mix in their economy," said Dan Bell, head of corporate sales at HiFX in Auckland.

"It looks like the kiwi/Aussie could get up to the 95 cent level" over the next month before it "runs out of puff," he said.

The kiwi fell to 85.04 yen at 5pm in Wellington from 85.31 yen on Friday in New York, and was little changed at 60.16 euro cents from 60.19 cents.

The trade-weighted index was steady at 77.92 from 77.90.

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Wesfarmers sells underwriting operations

DIVERSIFIED conglomerate Wesfarmers is selling its Australasian insurance underwriting operations to Insurance Australia Group (IAG) for about $1.85 billion - its biggest ever divestment.

Wesfarmers managing director Richard Goyder said the sale followed approaches by a number of parties that were interested in the underwriting business.

Wesfarmers had spent a lot of money in recent years getting the Australian and New Zealand insurance underwriting business into much better shape.

"But it hasn't delivered satisfactory returns on average over the last five years to Wesfarmers," Mr Goyder told reporters.

"And over a period of time, if any of our businesses don't generate satisfactory returns, we'll look and see what we do with it."

Mr Goyder said the sale of the insurance underwriting business also reduced some of the risk in Wesfarmers' portfolio of industrial, mining, retail and financial businesses.

There was inherent volatility in the insurance business because of catastrophic events like earthquakes in New Zealand, and Cyclone Yasi.

The sale does not include the insurance division's broking operations in Australia, New Zealand and the UK, and its Australian and New Zealand premium funding businesses which will remain part of Wesfarmers.

Wesfarmers expects a pre-tax profit of about $700 million to $750 million from the transaction, which will be included in the financial results for the second half of the 2014 financial year.

Mr Goyder said Wesfarmers had not yet decided what to do with the proceeds from the sale.

The sale is subject to regulatory approval, which is expected to take several months.

The acquisition comprises Wesfarmers' underwriting companies trading under the WFI and Lumley Insurance brands, and a 10-year distribution agreement with Coles.

IAG chief executive Mike Wilkins said the acquisition was a compelling strategic fit for IAG.

"Acquiring these businesses supports the group's strategic priorities of accelerating profitable growth in Australia and sustaining our market-leading position in New Zealand, and we expect attractive EPS (earnings per share) accretion," Mr Wilkins said.

IAG expects the acquisition will lift earnings per share by a modest amount in the first full year of ownership and by at least five per cent in the second year.

The acquisition will be partly funded from a $1.2 billion placement of shares to institutional investors, at $5.47 per share.

The integration of Wesfarmers' underwriting businesses is expected to generate pre-tax net benefits of about $140 million a year, with a significant proportion derived from reinsurance.

The integration process is expected to be substantially complete within two years, with pre-tax integration costs of $120 million.

Shares in Wesfarmers were 20.5 cents higher at $41.51 at 1515 AEDT. IAG shares are in a trading halt until the start of trading on Wednesday, December 18. They last traded at $5.70.

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Police assaulted at NSW soccer game

A POLICEMAN had to use "defensive strikes" to force a man to release his grip on his groin during a brawl at a Newcastle A-League soccer match.

Another police officer was punched in the head by another man in the melee, which saw a spectator punched in the face three times on Saturday night.

Police from the Public Order and Riot Squad and local officers were patrolling the match between the Newcastle Jets and Western Sydney Wanderers at the Hunter Stadium when a fight broke out and objects were thrown at 9.40pm.

They say the crowd turned hostile towards them when they intervened.

During a scuffle, a 21-year-old man allegedly grabbed the policeman's groin and refused to let go.

The man, police say, had been hindering police when he was pushed out of the way and fell on the ground.

He was arrested and charged with assault police.

He will appear in Newcastle Local Court on January 16.

At the same match police spoke to three spectators who were allegedly causing trouble.

One man refused to follow a police direction to return his seat.

Police allege he punched another spectator in the face three times before turning on the officers who tried to arrest him.

The 41-year-old is accused of punching one officer in the side of the head.

He was charged with assault police and behave in an offensive manner.

He will also appear in Newcastle Local Court on Monday.

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Red-suited revellers hit NY bars

The costumed New York pub crawl known as SantaCon has seen thousands of Santa's partying in bars. Source: AAP

SANTA Claus came to town despite snow and widespread criticism of the costumed New York pub crawl known as SantaCon.

New York City's SantaCon started on Saturday morning in Tompkins Square Park in the East Village. Thousands of red-suited revellers then spread out through the city's bars and snowy streets.

This year's SantaCon takes place in New York amid criticism that the event has become too rowdy. SantaCon participants were told to make charitable donations and encouraged to bring small gifts to bestow on one another and passers-by.

Organisers say similar events were set for more than 100 other cities worldwide on Saturday, including San Francisco; Portland, Oregon, Newport Beach, California and Vancouver, British Columbia.

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Aussie held over alleged arson in Thailand

A 47-YEAR-OLD Australian man has been arrested by Thai police and faces charges of assault and arson after clashing with the manager of a motorbike rental company in southern Thailand.

Kent Wesley Farrar, from Victoria, was detained on Friday after becoming allegedly angered by the bike's excessive use of fuel after renting the bike for a week on the resort island of Koh Chang, and demanded a refund.

But the manager, Narong Borploy, 55, said Farrar turned down the offer of another bike and started fighting after being refused the repayment.

Farrar, who sustained head injuries in the clash, then allegedly grabbed a fuel canister and poured petrol over three rental bikes and set them ablaze.

Thai police said Farrar then grabbed a knife and began threatening passers-by before being subdued at the scene.

Farrar faces charges of arson and assault and a damage bill of 100,000 baht (A$3500).

Thai Police investigator on the case, Police Captain Banjerd Krachangsaeng, was unavailable for comment when contacted by AAP.

Farrar's arrest comes in the lead up to the peak holiday season in Thailand and an influx of Australians over the Christmas period. Up to one million Australians visit Thailand each year.

Australian travellers are regularly warned over renting motorbikes in Thailand, often associated with scams by operators to extract additional fees for unspecified damages allegedly caused during the rental period.

A Department of Foreign Affairs spokesperson said the department was aware of Farrar's arrest and consular staff were seeking to meet with him and provide assistance.

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Missing Qld man found after four days

A MAN who went missing for four days in southwest Queensland, sparking a massive air and land search, has been found.

Two aircraft, police and State Emergency Service volunteers helped search a property south of Quilpie after the man, in his 50s, was reported missing on Saturday morning.

But he had not been since Thursday, December 12, police said.

The man had been working on his property and went to check bores but did not return.

His bogged vehicle was found on a neighbouring property on Saturday.

Police said the man was found at 5.20pm on Sunday on a property near Eulo, in the area they'd been searching.

He was airlifted to Roma Hospital for treatment.

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Fawcett auction items sell for $200,000

PERSONAL items belonging to late actress Farrah Fawcett have fetched $US200,000 ($A224,997.19) at auction.

Items including the iconic red swimsuit she wore for an Esquire magazine shoot, her passport, a script from her 1984 TV film The Burning Bed, and a People's Choice Award went under the hammer at Heritage Auctions in Dallas in Texas on Thursday.

Margaret Barrett, the director of entertainment and music auctions for Heritage, said: "The intense competition for Farrah's items in this auction speaks to how popular she continues to be with collectors."

In addition to Fawcett's belongings, the suit Gene Kelly got wet in 1952 movie Singin' in the Rain sold for just over $US106,000.

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