Sutcliffe would however retain his post as an executive director of the company and chairman of the group''s European and Australian metals recycling businesses and Sims Recycling Solutions business globally, until October 2009. He was appointed chief executive six years ago.

He would be replaced by Metal Management chief executive Daniel Dienst who would head the merged entity and chair the combined North American metals recycling business. The merger creates an entity with more than 200 global operations and annual revenue of $8.5 billion.

The merger was approved by Metal Management shareholders at a special meeting on Friday while Sims shareholders will vote on a change in the company''s name to Sims Metal Management Ltd at an annual general meeting in November.

Sims would issue Metal Management stockholders with 2.05 New York stock exchange-listed American Depositary Receipts (ADRs) for each Metal Management share, to satisfy the transaction. Each ADR represents one Sims ordinary share.

In the meantime the merged company will trade in North America under the name Sims Metal Management. Sims Metal Management would remain domiciled in Australia and retain its ASX listing, in addition to the New York Stock Exchange listing of its ADRs.

Sims shares lost 6%.

Baggage staff strike delays Qantas flights

At least 10 Qantas flights were delayed after the airline''s baggage handlers went on strike over safety concerns at Sydney Airport today.

The international terminal workers met for about 90 minutes from 11:30am, before returning to work and Qantas retained their pay by four hours, which the company says was standard practice under WorkChoices legislation.

Qantas denied a claim by a passenger that at least one flight left without baggage on board. In a statement, the Transport Workers Union TWU secretary Tony Sheldon said the baggage handlers are frustrated with understaffing, rostering concerns and old and badly maintained equipment. Sheldon said the airline''s response has so far been inadequate.

He said Qantas had five months to address the serious safety issues, but it appeared to ignore the problems. The TWU said surveys conducted within Qantas at Sydney Airport showed nearly one in three employees suffered injuries while at work last year, including torn discs in the neck, a broken foot and neck and shoulder strains.

It said the surveys found one in seven workers had to take time off work as a result of their injuries. Qantas says the industrial action was unauthorized. The Industrial Relations Commission has convened a meeting today to discuss the dispute.

Zinifex gets 45% of Allegiance stocks

The miner Zinifex has almost completed its takeover of Allegiance Mining. According to the latest update from the Stock Exchange Zinifex has purchased 45% of Allegiance shares, up from 37% on Friday. Zinifex''s final offer of $1.10 per share closes on Thursday, having been extended three times.

West Australian Newspaper warns shareholders against Seven''s proposal

West Australian Newspaper Holdings Ltd today advised its shareholders against voting Seven Network Ltd head Kerry Stokes onto the company''s board.

WAN said voting for Stokes would be tantamount to them throwing away hundreds of thousands of dollars. Seven Network Ltd head Kerry Stokes plans to seek shareholder approval for his appointment during the overhaul of the WAN overhaul of its board by releasing an explanatory memorandum claiming the media mogul would wrest control of the company if given a seat.

""As far as the non-executive directors are concerned his personality, his experience, his influence and his voting power makes it inevitable that he will assume effective control either immediately or over time,"" WAN chairman Peter Mansell said.

Mansell said that Stokes'' attack on WAN bore a strong resemblance to how he took control of Seven without paying a control premium.

""Anyone who knows the history of Seven Network will appreciate that the action Mr Stokes is now taking in relation to WAN bears a strong resemblance to the early stages of the process by which Stokes took control of Seven Network without paying a control premium,"" he said.