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(generated from captions) is the law of the land in the

Catholic Church but on that

second problem of how do you

hold Bishops accountable for

their failures, that I think

many people would see the

most important piece of unfinished business about

this crisis which is what

makes the people's own record

so potentially

so potentially explosives

because the question is can

Pope Benedict XVI credibly

ride herd on other Bishops if

his own record on this issue

at least in the distant past

is not any better and that is the question Pope Benedict

XVI will have the answer. Is

there any chance Pope

Benedict XVI may not survive

this? If by that you mean

might he resign I would put

that up with in terms of level probability with the

earth collide wing another

planet. Is it possible? Sure.

Is it something I would hold

my breath waiting for? No. In

more than 200 church history

Popes have resigned a handful

of time. The last time was in

the early 15th century and

that was basically down

barrel of a gun, this is just

not something that happens

very often. The more realistic probabilitifies the

Pope does not find a credible

venue to lay the questions to

rest the Vatican and his papacy will be tied down if

not effectively paralysed for

weeks and month to come tying

to put out these fires and

ultimately what will be in

question during all that time

is his moral authority to

lead the church out of this

mess. The Pope made no direct

mention of this scandal in

his Palm Sunday homily. Do

you expect him to say

anything about it at all in

his Easter mass or would that

be deemed inappropriate? No,

I think it is radically

unlikely you will hear

anything about this crisis in

his homily for Easter Sunday,

that is for him to reflect on the resurrection of Christ

and hat Easter means for the

fate of humanity. I do not

think that is the venue and I

tot in think people will

expect him to pick up the

subject there but soon after

Holy Week he needs to find a

opportunity to pick up these

questions because as I say

the alternative is continuing

paralysis and clearly that is

not in his interest or in the

interests of the church. John

L. Allen thank you for a very

sophisticated analysis of a

very complex scandal Glad to

be with you. The

be with you. The British

science writer Simon Sing has

won a long-running case

brought by fellow child you

practice force. He backed the

claims that asthma and alcoholic could be

successfully treated through

manipulation. His $ever ?200,00 defence prompted

calls for reforms of

Britain's defamation laws.

Today's judgement upheld his

appeal for the right the rely

ton defence of fair comment.

New Zealand says it will

International Whaling agree to a compromise in the

Commission the allow Japan,

Norway and Iceland to kill a

limited number of whales. The

country's IWC Commissioner

Sir Geoffrey Palmer says this

is the only way the control

large numbers of whales being

hunted but environmental

groups in New Zealand and

Australia are outraged. This

is what New Zealand is going to approve. The government

says allowing some whales to

be killed will save

others. The opportunity of

the matter is that not all

cultures or all nations see

that issue the same way and

because that every you have

the arrive at an international accommodation

under a treaty

arrangement. Sir Geoffrey

Palmer says whaling is an

emotional issue. He concedes

it will not be a popular

decision but says it is the

International Whaling only way to get the

Commission to compromise. We

cannot in New Zealand afford

International Whaling to see the end of the

Commission because if it

comes the an ends there there

be no international

instrument many for protecting whales dwl. The New Zealand plan will allow

150 hails to be killed each

year, half the number Japan,

Norway and Iceland catch

annually. Australia wants a

blanket ban. This proposal

effectively destroys the

moratorium on commercial

whaling that has been held

together by like minded

nations including Australia

and New Zealand for many years. But New Zealand says

this will be more effective.

The agreement that is if you

take whales under this

arrangement you do not take

them anyway and it is not the

agreement of the

fisheries. Groups say this legitimises commercial

hailing and New Zealand is

giving into the hailing

nations. The idea of keeping

a figure tame as reducing the

number of hails killed

protections the whales have trading the greatest

is extremely worrying to

us. Australian conservation

groups say New Zealand is

selling out.. the New Zealand Government ton hailing issue

they are letting down

Australia and the people of

New Zealand and more

importantly they are letting

down the whales with this

dangerous and disastrous

compromise. The New Zealand

proposals will be discussed

when the International

Whaling Commission meets in

June. The weather - a shower or two in Melbourne and

Hobart. The risk of a storm

for Perth. Fine and mostly

sunny in the other capital

cities. That is all from us.

'Lateline Business' in a

moment but if you would like

the look backt our interview with John L. Allen or review

our stories or transcripts

visit our web site and follow

us on Twitter and Facebook.

Tonight Newcrest leaves open

a $9 billion takeover bid for

rival Australian gold miner

Lihir. We could position

ourselves as combined group

of shareholders to be

interested in the biggest

Asia-Pacific gold player in

the world. But Lihir's board

remains unimpressed saying

the offer does not reflect

the gold producer's true value. The offer we

considered and rejected this

morning just does not add up

for our shareholders. A sweet

alternative to a demerger.

CSR considers a new offer

from China's Bright Foods. I

this the Chinese are very

serious about acquiring CSR's

sugar business. The offer has

not only increased but they have provided more

information to CSR. First to the markets. The All

Ordinaries finished the week

strongly up more than 30 pint

after a second day of big

take over news. The ASX 20

was higher. The Nikkei hit an

18 month high for the third

day in a row. Hong Kong's

Hang Seng climbed 35 0 point

and in London the FTSE has

risen in morning trade. Lihir

has been touted as a potential takeover target for

years and finally the most

obvious suitor has made its

movement Newcrest has offer

$9.2 billion but the board of

Lihir has been quick to

reject the offer is too low.

At the same time they also

name add new CEO and we will

speak to Lihir Professor Ross

Garnaut and Ian Smith

shortly. Lihir has been a

perennial under-performer

trading at a steep discount

to its peers. Sovereign risk

is one issue given its 1

million an ounce mine is

located in Papua New Guinea

but outside of the island the

miner's track record is not

good. In pack particular the

disastrous 2007 acquisition

of Ballarat gold cost the CEO

his job. It has provided new

crest with the a opportunity

to pounce. Very timely. Until

this morning Lihir was

looking for a CEO and Newcrest saw a great

opportunity to buy a great

company with multiple mine

life and low production costs

in 600 to 700 an ounce range.

Very few stocks, without a

CEO until this morning, with

massive production potential and effectively great cash

flow, it is a opportunity

that does not come up that

often. Under the terms of the

offer shareholders will

receive one Newcrest share

for every 9 Lihir shares.

Newcrest has recognised Lihir

is quite significant which

will undervalued or was at $3

and slightly below that price

so probably the primary

motivation for Newcrest they

have come win a decent

premium above that but given

the under-valuation we do not

see it is enough to get over

the line, clearly it is not.

If they are going to come

back with a higher offer it

will have to a a 4 in front

of it. The market agrees the

28% premium is short of mark

and shares close 43 cents

higher. It appears price is

the only sticking point in a

deal analysts say makes sense

for both companies. The cop

Kerr resources are more

significant relative to gold

an as that continue through

the years ahead Newcrest is

at risk of being less of a

fold miner and more of a base

metals miner. Lihir is very

exposed to one mine so the

opportunity for people in

Lihir which is a great stock

to be absorbed into a company

with significantly lower mine

risk or country risk is

compelling. But Lihir stays

the price is far from

compelling. The job of

selling Lihir as a

stand-alone investment see

assist Graham Hunt and BHP

Billiton veteran involved.

I'm looking forward to

identifying extra value. I

have some ideas, more than

ideas. I know where I want

the start and I want to work

the team to identify how we

build off the work that is

already done. His tenure

though could be short lived

if Newcrest or a third party

can come up with a knock-out

bid. For a more detailed look

of the thinking on both sides

I spoke earlier to Newcrest

CEO Ian submit and the

Chairman ever Lihir Professor

Ross Garnaut. Welcome. Good

to be here. Lihir has not

been performing well for

awhile so why is this deal

unacceptable? Lihir has been

performing very well in

operations, in production, in

cash flow but that has not

been reflected in market

value in recent times, that

is one of the reasons this

morning the board of

directors after rejecting the

Newcrest offer appoint add

new CEO who has been given

the job of making sure that

the true value of this

company is reflected in the

market price. Until today the

market valued the share price

at just below $3 so why is it

this the market cannot see

the quality or the value you

do in the company? We do not

think that the true value of

the company has been

represented as well as it can

be in the marketplace and I

made it clear when we began

the search for the - the

global search for a new CEO

that we would be looking for

someone who would help us the

correct that miss

perception. So why is Arthur

Hood the only one to lose his

job over the ball a rat

situation? Arthur Hood did

not lose his job over the

ball a rat acquisition. But

that was one of the issues?

As I made clear at the time

Arthur did many good thins in

the company. He helped to

improve performance at Lihir,

he was important in the

acquisition of the Queensland

and West African assets that

have performed very well. The

company made a big mistake at

Ballarat, we do not shy away

from that. That is a mistake

that we very much regret and

we have spent a lot of time

go go over that to make sure

that nothing like that ever

happens again. How compelling

is the case for a tie-up teen

these two companies? Doesn't

it make strategic sense? We

recognise it makes strategic

sense. We have said that to

Newcrest and in our statement

the Stock Exchange today.

That is not the question. The

question is what is value for

Lihir shareholders. It is

certainly value for Newcrest shareholders in what was put

to us over the last few days

but what is on the table is

not value for Lihir

shareholders. Will you now

actively engage with

Newcrest? What will to be

process for future of this negotiation? Newcrest asked

us if they could do limited

do you diligence. They set

out 7 questions that they

wanted due diligence access

on. We agreed with that, we

facilitated that, we arranged

meetings with our senior

executives and provided

information under those 7

headings. It made its best

possible offer in response to

our cooperation. We

considered that and our bored

of directors formed the view

this was not in the interests

of Lihir shareholders. Have

you spoken to shareholders

about the Newcrest bid? Is

there any pressure from them

to come to an agreement?

I've spoken to a lot of our

major shareholders today. It

was not appropriate to take

to shareholders to, privilege

some shareholders above

others by giving them

information before we had

released the state of play to

the market this morning.

During the Davie spoken to

quit few of our major

shareholders. Not one has

said we made a mistake. There

is a lot of confidence that

we will go about maximising

shareholder value. Professor

Ross Garnaut thank you for

joining 'Lateline' Business..

thighs the talk to you. Now

we are joined by CEO from

Newcrest Ian Smith. Ian

Smith, welcome to the program. Thank you very much

for inviting me on. Analysts

have talked about this merger

for many years so why now? We think there is a compelling

case at the moment. When you

look at the two companies and

look at the portfolio of

assets it entails we really

could position ourselves as a

combined group for

shareholders to be interested

in the biggest Asia-Pacific

gold player in the

world. Yes, but why now

instead of two years ago?

What has changed? Internally

for both companies we really

have got to a point where the

compliment of assets really

works together. In Newcrest

we have been exploring in

PNG, Fiji, we have been

getting our assets in

Australia up the a point of

dependability. Now it really

the time we can consolidate

and make sure we position ourselves for the

future. Some analysts say

that Newcrest is in danger of

becoming a base metals player

instead of pure gold because

you keep building copper

reserves. So how much of this

deal is about getting a quick

fix and rapidly bulking up

your gold reserves? What we

have been doing is finding

gold, copper and copper-gold

deposits and expanding the

size of those deposits so

over the next five years the

percentage of revenue we get

from cold is at least 75%. In

the five years after this

initial five-year period then

the percentage of revenue we

get from cold starts to

diminish so we really have a

6 to 8-year period where we

can address the issue of had

our gold revenue percentage

drops below 60%. 60% is the

pint at which people start

the question whether you are

a gold company. So do you

have any concerns over Lihir

Island given the country

risks and in terms of higher

cost of shipping waste out of

the area? No, we have been

involved in Papua New Guinea

now for over 12 months

because we bought into the

joint venture. We had

developed a mine Hidden

Valley we worked very closely

with the Government on over

that period. We like what the

Government is doing and the

direction the Government

wants mining to be moving in

so in that total context we

are happy operate fringe BHP

Billiton. The market is

expecting a higher offer to

come to an agreement on price

because this is the sticksing

point. We think what we put

ton table on Monday was a

full and fair offer to Lee.

If you under the relative

values and where Newcrest is

going t shareholders if we do

get to participate in this

proposal, all shareholders

will have access to a strain

ever projects going forward which stands them in good

step to be at the forefront.

It is not just the valuation

on the enwrite the price, it

is the long-term proceed

profile of what the combined

company looks like and we

think that represents a very

good deal for all shareholders involved. Professor Ross

Garnaut says there is a

compelling and strategic case

for the two companies to be

merged so are you saying that

you are not prepared to

negotiate on the price? You

only get to the price or a

relative price based on

relative valuations. I'm sure

Ross which is right and

proper would take the

position that Lihir is

probably undervalued. I would

take the position that

Newcrest certainly is

undervalued for our future

and the opportunity it brings

to the combined entitity.

When you take that total

profile inti account where

you are sure this this offer

is a full and fair

offer. Does this bid suggest

that Newcrest is bullishing

the long-term in regard to

the outlook for gold and is

it a position to strengthen

your position ahead of the

next gold rally. The most

important thing is that we

are not bullish on gold and

we want to enlarge our

involve many in assets at the

right end of the cross curve

so the combination of these

long liver, very large,

global arrives over time and

consolidate where we teed to

be in industry for the

long-term. Ian Smith thank

you for joining 'Lateline'

Business. Thank you.

Overseas the US bond fund

Pimco warns the UK is at risk

of debt spiral as it

of debt spiral as it seeks to

finance a huge budget

deficit. And no to Britain as

it looks to borrow ins. The

fresh from a bailout to

finance its own debt. How

widespread are the fear s of

UK government borrowings? I

think they are quite

widespread in the have sense that everybody has been

pushing them for weeks, in

not months which has been

pushing sterling and guild

higher and there is a booed

consensus in the spectrum in

the UK that would have wins

the elections will have to

did a fair amount of reorm

niceation so we are not

negative by the end of the

UK. It will have similar debt

less. They had to bailout a

lot of financial institutions

and the debts. The immediate

crisis appears to have been

diverted but Greece is still

very much cause for concern?

Yes, very much so. We had numbers ton manufacturing

sector in Europe, every

single one showed activity.

Greece is the only one small.

Is very small an count than

less than 3% of the GDP

Ireland country are being

benefited out of the

recession. Sovereign debt is

clearly a big issue still

clearly a big issue still sin

Europe? The debt is a big

issue but not in terms of the

US. The eurozone has

weathered this crisis well

considering. How quickly

will the eurozone rebaund The

forecast ton eurozone still

suggests we will only get

back to where we were of this

- 2010 or 2011. Rebalancing

needs to grow and we need to

manage our ways. Shank hi's

biggest food company has

sweetened the deal for

Australia's biggest sugar

supplier. The new offer could

be more appealing to CSR with

asbestos last month the

Federal court brought the

standstill CSR want to cut

out the business because it

does not make sense to have

sell and renewable systems.

It would leave its building

operations in a much smaller

357. The smaller company however could meet future

asbestos liabilities and

rejected CSR's application.

The Federal Court is

The Federal Court is Kerring

where it is the business they

are separated. There are a

number of options which may

happen the allow the demur

fwer to occur. However I

think they are taking a very

close look because it is very

fresh in everybody's mind

what happen with the James

Hardie situation. The other

option for kr.d SR was the

sell sugar Mills to China's

Bright Foods. The $1.5

billion offer was rejected

before the Federal Government

bridgement. But now Bright

Foods has sweetened its offer

by a quarter of a billion. I

think China is very curious

about eye squareing a business. They have provided more

more information. In a

statement to the Australian

Securities Exchange he said -

CSR.. Bright Foods is one of

of China's biggest food companies. The dynamics

suggest it is a long-term

investment because it is on

the up no doubt so obviously

increasing Chinese population

but an in creed in demand.

Some of these items are

deemed to be luxury by the

likes of China so there is a

growing toward depend

there. After bad weather cut

output by the world's biggest

users India and Brazil the

more reliable is on the

radar. And while the Federal

Court will come back with a

decision next month the revised

revised offer quifs them a

Plan B to contemplate. The

movers ton Australian market - Virgin Blue slipped.


Reserve Bank will meet again

next week. There is fresh

evidence the sector is bowing

to command. There have been

declines in production,

employment and inventories.

I think with weak demand

rising interest rates and a

strong dollar now would

indicate that confidence

levels are patchy. The local findings contrast with the a

similar survey in China which

shows strong manufacturing

growth in March If China is

doing well t manufacturing

course there is steel which

uses our raw material so a

strong Tina is good for

Australia in most ways but it

puts more pressure on our

currency so it makes it more

complex. China's manufacturing activity is

likely to have a bearing on

Australia's future trade

performance. In the meantime

figures for February show

Australia's deficit widening.

The FTSE is trading higher at

33 points, the Dow futures

are up by 50 point. Thank you

for watching. Goodnight. Closed captions by CSI

We have a very special edition of Spectacle this evening. Our featured guest is the best-selling jazz artist of our time, which is pretty extraordinary when you also consider she happens to be my wife. CHEERING AND APPLAUSE I'm speaking, of course, of the lovely and talented Diana Krall. But wait, that's not all!

In order to respect the separation of church and state, the opportunity to drink from this delicious chalice has been cruelly snatched from my lips. I appealed to the Vatican but they told me to say five Hail Marys and shut up. Thus chastened, I have reached out to a very special guest host. Ladies and gentlemen, Spectacle's executive producer, Sir Elton John! CHEERING AND APPLAUSE Ah! Welcome to Spectacle, and, as a substitute host, we had to get someone who also wore spectacles, so I was a shoe-in for the job. Anyway, without wasting any more time, I'd like to bring out our featured guest, my dear friend Diana Krall!

CHEERING AND APPLAUSE Now this is the first time I've ever interviewed anybody on television, so I hope it goes well. You are one of my dearest friends and favourite artists. So as we both play the piano, I want to talk about the piano first.

When was the first time you ever played the piano? Can you remember? I can remember being I guess about four years old. I remember the keys being about here. And I remember picking out...

(PLAYS HEY JUDE) So that's what I heard as a four-year-old. I don't know whether that's funny. The way you play I thought it might be Flight Of The Bumble Bee. As a very slow ballad. You played by ear, right? Yeah. My family, my dad, played by ear, and my great great-aunt was in vaudeville in New York in the '20s. Everybody had a piano and...very modest. Growing up, my dad's father was a coal miner, but they loved music - they had sheet music and collected it. So my dad started collecting 78 records, so I grew up listening to cylinders and 78s before - Cylinders! That pre-dates me. But did you learn to read music at an early age? I did. I started at the Royal Conservatory Of Music in my home town of Nanaimo in British Columbia. I just started in the conservatory program. I grew up with things like... (SINGS) # Lydia, O Lydia # Say have you... # Try dressing up as Groucho Marx for Halloween when you're 13. It doesn't go over well, you know? But it was great to discover those songs as kids. So for me to teach... My kids will learn Wheels On The Bus and Itsy Bitsy Spider. They shouldn't go to preschool learning show tunes. Ten Cents A Dance. "Hey, my mum taught me." Unless you want them to turn out like me. Fortunately they're singing Pump It Up now.

Pump It Up! You know, and "Beep-beep, beep-beep, yeah!" So we're all covered.

You were listening to all sorts of music, but you were drawn to jazz first, or pop music? I guess both jazz and pop music. But pop music that was soulful and interesting to me. Mostly singer-piano players like yourself. But I was also listening to Fats Waller from the time I was born. And I did have your songbook, you and Bernie Taupin, and I remember flipping the pages to... (PLAYS LEVON) And I thought, "Calls his...Jesus, that's pretty cool." So I remember... It's kind of funny, because in high school all my friends were listening to Elvis Costello. I was listening to...

I remember driving with my mum and hearing Alison and thinking, "That's really cool." But I was listening to jazz and in the band program,

and trying to figure out all the 2-5-1 chords and being interested in Oscar Peterson. I think that was the real thing... Hearing Bill Evans first and then Oscar Peterson really changed my life. There was a lot of criticism from the purists in the jazz world. They couldn't take you as seriously as they would like to, because you were having glamorous album sleeves done. It's that cliched idea of what a jazz artist should be like. Billie Holiday and Ella Fitzgerald, they went through a lot that... And remained beautiful and true to their art. But I'm not living in that lifetime. I'm grateful to those artists. I don't really have time for it. If you're not good, if you're not a good artist, there's another story where you can go, "Well, that'll be bi..." But you have to, um, you're an entertainer, or I'm an entertainer, and I see the entertainment also in what I do as... And I also love fashion and I enjoy being a girl. So do I, love. CHEERING AND APPLAUSE Give me five. I don't have my tiara with me. I know. You taught me.

What age did you start to sing? 26. Really? having a high voice. I think I was really caught up with I auditioned for the youth choir (SINGS TENTATIVE HIGH NOTE) and it was like... They we're trying to get me... voice when I was 12, I had a very kind of Scotch-infused so I didn't... Yeah. Yeah! That's Canada for you. Maple syrup-infused Scotch. You're an alto, right? But I - Yeah, well, I don't know. in the back with the boys, They should have just put me fine with that. and I would have been happy, So my confidence was a little shaken for the youth choir. because I didn't pass the audition a different kind of voice. Probably rightly, because they needed like Julie London, perhaps, If I was gonna say you had a voice