Gold for immediate delivery yesterday fell by the most in four months, dropping 3.9%. The metal extended the decline today, falling as much as 2.8% to $917.91 and closed at $920.06. Gold reached a record $1,032.70 on March 17 after rallying for 7-years.

Foster''s Group Ltd and Lion Nathan Ltd to scrap ready-to-drink (RTD) products

Foster''s Group Ltd and Lion Nathan Ltd have indicated that they would drop ready-to-drink (RTD) products with a high alcohol content and energy additives from their Australian portfolios in response to community concerns about alcohol abuse.

Foster''s today announced it would immediately move to cease the production and marketing of added energy and higher alcohol RTD products in Australia.

Foster’s would voluntarily cease manufacturing and marketing alcohol beverages containing ''energy'' additives such as caffeine and taurine. In addition, the company has formally committed to a voluntary limit of two standard drinks (20 grams of alcohol) per single serve container and 7% alcohol by volume across its RTD product portfolio.

The decision by Australia''s two biggest liquor makers to cut brands such as Cougar XS bourbon and cola, which has 2.1 standard drinks, follows Australian Prime Minister Kevin Rudd''s announcement of a $53.5 million campaign to battle alcohol abuse.

Binge drinking costs Australia $15.3 billion annually in absenteeism and health care, and accounts for 40% of police work, according to the Alcohol and Other Drugs Foundation. Foster''s share fell 1.8%.

Perilya in talks with CBH

Perilya Ltd and CBH Resources Ltd today requested a trading halt in their share to facilitate talks on a possible merger. Perilya advised the Australian Stock Exchange that the talks had reached a stage where they warranted a trading halt in Perilya shares.

A combined company would be worth $487 million, based on yesterday''s closing prices. Perilya and CBH have mines within two kilometers of each other at Broken Hill.

A merger would bring together two companies, which produce lead, silver and zinc in New South Wales State, struggling to revive shareholders'' confidence in their expansion plans.

Toho Zinc Co, CBH''s largest shareholder, wanted to remove CBH''s chairman last year and Perilya began a review in February after its share market value halved last year.

CBH''s share has lost 34% in the past 12 months and Perilya has declined 73%, compared to a 12% fall in the benchmark index ASX 200.

Perilya''s first-half profit fell 84% because of a decline in zinc prices and disruptions to production, while CBH''s earnings fell 60% on lower metal output and prices.

QBE''s shares gains from takeover speculation

Takeover rumors of global insurance giant, QBE Insurance Ltd propped up its share which rose as much as 10% today. The insurance giant with a market value of $20 billion has been a victim of media speculation, which hinted that it could be a takeover target. QBE share was up 6% at the close against a 3% fall in the broader market. The Group however denied any takeover approaches.

""In response to your query today regarding the increase in the QBE share price over the past 24 hours, we advise that QBE is not aware of any information that has not been announced that could explain the movement in QBE''s share price, in particular, QBE is not aware of a takeover approach as speculated by Dow Jones today, the insurer said in its response to the Exchange today.

QBE shares also gained 7% yesterday. The market was however taken aback by the speculation since the insurer is usually a predator. Its Chief executive Frank O''Halloren indicated in February that QBE, which has been expanding aggressively in America, could afford to acquire a company that generated between $1.6 billion and $1.8 billion in net written premiums a year.