BHP likely to delay big projects

BHP Billiton is expected to delay go-ahead decisions on three of its "mega" mineral projects – the Olympic Dam copper-uranium mine, Jansen potash in Canada and the Outer Harbour development at Port Hedland in the Pilbara – until the December half of 2013 in response to rising economic uncertainty and increased investor demands for greater returns, The Australian reports.

That is the timeline that equity analysts at Deutsche Bank have arrived at after taking in what was said last week in presentations by BHP chairman Jac Nasser and managing director Marius Kloppers.

Both men talked of the need for BHP to be more selective in committing capital to new projects and expanding existing projects, as well as the need to "sequence" projects, because of the broad fall in commodity prices.

China slowdown threatens Australia: World Bank

Australia's dependence on resource exports could come back to bite it as a slowdown in Chinese growth causes commodity prices to fall, the World Bank warns, The Sydney Morning Herald reports .

In its twice yearly update of economic forecasts for East Asia, released on Wednesday, the World Bank warns growth across the region is expected to slow to 7.6% in 2012, down from 8.2% in 2011 and nearly 10% in 2010.

China, Australia's biggest trading partner, is expected to see economic growth slow to 8.2% in 2012, down from 9.2%, before lifting slightly to 8.6% next year.

However, the World Bank warns China's economy could slow more quickly if Europe's sovereign debt crisis worsens.

If that happens, World Bank East Asia chief economist Bert Hofman warns, commodity exporting nations that have reaped the benefits of China's boom, like Australia, could struggle.

Overseas bidders pay more for resources targets

Foreign bidders are offering higher prices for Australian takeover targets than domestic bidders, with Chinese buyers offering the highest premiums, The Sydney Morning Herald reports.

Law firm Corrs Chambers Westgarth's recent review of mergers and acquisitions in 2011 also reveals that the mining and metals sector was home to most activity, accounting for 41% of all merger and acquisition activity.

The report found foreign bidders paid an average premium – the difference between the final price and the share price at the time of the takeover announcement – of 47.5%.

Predominantly, foreign bids were cash only, making up 90% of the overseas offers.

Australian bidders paid an average premium of 43.5%, and 75% of the offers involved scrip as all or part of the deal.

The report noted that Chinese bidders paid the largest average premiums (48%) while bidders from the US and Britain paid an average 36%, and bidders from Southeast Asia paid an average premium of 28%.

Chinese bidders are believed to pay above the odds to sweeten their bids, which are conditional on them getting approval for outbound foreign investment from the Chinese government.

The average deal value for foreign bidders was $1.1 billion, compared with $322 million for domestic deals, the report says.

Pay apprentices more, say unions

Unions have applied to Fair Work Australia to raise the pay of about 200,000 adult apprentices to the minimum wage in their industry, along with an application for the adult wage to be paid to 20 year olds instead of it starting at 21, the Australian Financial Review reports.

The unions, led by the Electrical Trades Union, argue a pay rise is vital to boost the completion rate for adult apprentices, which they say is only about 60%, but employer groups say the move could backfire.

Workplace Relations Minister Bill Shorten has said existing low wage rates have to be addressed, but a balance is required so it does not become too expensive to train apprentices.

The ETU has been lobbying Shorten and Skills Minister Chris Evans to have apprentice wages increased and both have given tentative support.