Press Releases

Sydney, April 16, 2010 (ABN Newswire) - Asian markets mostly opened lower today despite Wall Street gained for its sixth straight day on Thursday. Australian shares fell slightly as the market is taking a breather after rallies in the past several days. Yesterday Asian shares were encouraged by China's first quarter economic growth. China's National Bureau of Statistics said yesterday that its economy surged by 11.9 per cent in the March quarter, up from 10.7 per cent in the final three months of 2009. Japan's Nikkei 225 Average rose 0.6 per cent and South Korea's Kospi was up 0.5 per cent. Hong Kong and Australia markets posted small gains. China's Shanghai Composite ended flat.

Company News

QBE Insurance Group (ASX:QBE) said it has agreed to acquire NAU Country Insurance Company and its holding companies with US$565 million, in line with QBE's long term strategy of acquiring specialist business to further enhance its product diversification and distribution. NAU is the third largest underwriter and manager of multi-peril crop Insurance, which is a US government sponsored program to assist farmers with insurance of crops. The net tangible assets acquired will be US$217 million. QBE said the acquisition will be funded from QBE's existing resources and be earnings per share accretive in year one. The deal, subject to regulatory approvals, is expected to complete in July 2010.

Petsec Energy (ASX:PSA) said today its earnings before interest, tax, depreciation, depletion, amortisation and exploration costs (EBITDAX) was US$31.3 million in 2009 calendar year. The company's objective over the next three years is to grow from its current reserve based value of approximately US$100 million to US$500 million level or greater, predominately through exploration success and the development of five China oil fields. Petsec Energy yesterday indicated that it aims to acquire more lease blocks in the Gulf of Mexico and would consider selling its minority stake in a joint venture China National Offshore Oil Corporation in China's Beibu Gulf for the right price.

Macarthur Coal Ltd. (ASX:MCC) said Friday POSCO (SEO:005490) and ArcelorMittal (NYSE:MT), Macarthur's two major shareholder, believe a revised offer from Peabody Energy Corp. (NYSE:BTU) is worth considering, after Peabody sweetened the bid for the Australian miner with A$4.07 billion. Macarthur said its board is meeting to consider the offer.

Rio Tinto (ASX:RIO) said most of its operation continued to run at capacity. Rio Tinto said its global iron ore production in the first quarter 2010 was up 39 per cent compared with the same quarter of 2009. But the mining giant is still cautious about the short term volatility, despite strong demand from China and recovery in OECD markets. Pilbara iron ore production in first quarter, which was impacted by heavy rains, was 53 million tonnes, still up 48 per cent on the corresponding period last year.

Contact

Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net