The company said it will pay Smithfield $565 million in cash for beef- producing units, including cattle feedlots, National Beef in the U.S. for $465 million in cash and $95 million of stock, and Tasman Group in Australia for $160 million in cash.

It said the acquisitions represented important steps ""in the completion of the investment plan aimed at building a sustainable platform of slaughtering capacity and meat sales in the United States and Australia,"" as reported by Reuters.

JBS hopes to use the acquisitions to circumvent restrictions of beef exports from Brazil to U.S., Australia and Europe.

The transactions would make JBS the largest U.S. beef processor, supplanting Arkansas based Tyson. JBS already was the third largest in the U.S. after acquiring Swift & Co. last year.

Babcock & Brown Infrastructure in talks with WestNet Rail minority shareholders

Infrastructure investment specialised fund group, Babcock & Brown Infrastructure today revealed that it had commenced discussions with the 49% minority holders in WestNet Rail, as it seeks to delay the acquisition of the whole group.

The company said in a statement it was seeking to vary its call option over this minority interest by extending the exercise date beyond 31 March 2008 for up to a period of 12 months and to ensure that BBI has the option to pay the consideration in cash when the call option is eventually exercised.

It said that it was hopeful that the large majority if not all WestNet Rail minority shareholders would be receptive to this proposal. BBI said it was also giving consideration to reducing its current 32% effective investment in Natural Gas Pipe Line of America NGPL to approximately 26% effective interest due to strong investor interest in the pipelinee of America (NGPL).

A 26% interest would still leave BBI as the single largest shareholder and ensure all current governance protections remain in place. BBI said it remains committed to a long-term significant holding in this attractive U.S. gas transmission and storage asset business. WestNet Rail is a core asset for BBI that contains attractive medium term growth potential.

BBI also announced that it had commenced a review of its current portfolio for potential divestment of non-core assets.

Allco share recovers as former co-founder ups interest

Shares in troubled Australian investment company Allco Finance Group which have been on a free fall today surged 33.3% after today''s trade following reports that its former co-founder had increased his holding in the finance house by 10%.

The former co-founder, John Kinghorn, who also chaired former RAMS Home Loans Group Ltd raised his stake in Allco to 9.75% from 6.80% yesterday.

Kinghorn, who acquired the 6.80% stake in January is speculated to team up with up with the other founder of Allco, David Coe, to take the group private. Coe dismissed the suggestions saying that he had not had any discussions with Kinghorn.


ABC close to selling US unit

Childcare company, ABC Learning has announced is close to concluding a deal to sell 60% of its U.S. operations to Morgan Stanley Private Equity. The company''s director Eddy Groves, who is in the US, was in final negotiations on the partial sale of ABC Learning''s U.S. kindergartens, according to the Australian.

ABC would realize $750 million in cash proceeds with additional $32 million payable in 2009 which will be used to reduce its bank debt. The deal would help ensure that its local centres would survive and will not have to be sold-off.

The company requested trading halt in its stock to the ASE to allow for negotiations with potential buyers last week, after its shares slumped 43% in one day on its short term debts.

Meanwhile the group has been stalked by reports of a split between its founders Groves and his wife, Le Neve. Groves is now believed to be living on the Gold Coast and le Neve in Brisbane. The couple has two daughters together, according to various media reports.