29 November, 2009
PRESS DIGEST - British business - Nov 30
Monday, 30 November 2009
The Times
CADBURY CHIEF PREFERS HERSHEY TO KRAFT
Todd Stitzer, Cadbury's(CBRY.L) chief executive, has for the first time spoken on record regarding speculation that the confectioner could be subject to takeover bids from Hershey (HSY.N) and Kraft (KFT.N). Mr Stitzer said: "There is quite a lot of cultural similarity. I would prefer Cadbury to be in an environment where its values and principles could continue." Kraft is said to be placing finishing touches to its formal offer document.
RECKITT TO RAISE CASH
Reckitt Benckiser(RB.L), the household products maker, is thought to be preparing a two billion pound bond issue, fuelling speculation that it is planning a series of acquisitions. It has been suggested its first target would be SSL International (SSL.L), a deal that could be worth 1.8 million pounds.
SURGE IN TV SALES BOOSTS JOHN LEWIS
John Lewis, the department store, reported sales were 22 percent up on last year mainly due to consumer demand for electronics. The retailer noted that a "record week" for television sales outside the sales season helped generate 91.8 million pounds ($150.4 million) in turnover whilst the sale of games consoles exceeded the biggest week in the run up to Christmas by 50 percent.
The Daily Telegraph
RBS OFFERS TO CAP LENDING FEES FOR SMALL BUSINESSES
The Royal Bank of Scotland(RBS.L) will carry out its promise to small businesses by being the first bank to freeze arrangement fees. Fees on loans and overdrafts will be capped at 1.5 per cent for a year, at the very minimum. Other banks offer the same rate of interest but review the rates every quarter. The move comes amid claims that the state owned bank has been "blackmailing" companies into signing them up as investment banking advisers in return for cash loans.
FLYBE PLAYS DOWN FLOTATION, FUTURE IPO REMAINS ON RADAR
The British European regional airline Flybe has refused to confirm that it instructed Merrill Lynch to prepare it for stock market flotation next year. The airline, in which British Airways(BAY.L) has a 15 percent share, states that it is waiting for the right time to put out an Initial Public Offering (IPO). A statement said: "Flybe may consider the possibility of a public listing at some point in the future when the demand for IPO's returns and provided an IPO could be undertaken in the best interests of the company, its shareholders and customers."
CO-OP JOINS CHRISTMAS PRICE WAR
The Co-operative supermarket chain is shaving 200 million pounds from its prices in the run up to Christmas. Monday's campaign launch follows on from the purchase of Somerfield earlier this year and pits them into the annual festive price war with Asda (WMT.N) and Tesco(TSCO.L). Chief executive Peter Marks said: "With rising fuel prices and financial pressures hitting household budgets this Christmas, customers are looking for a great deal locally. The acquisition of Somerfield has enabled us to offer them our best value deals ever across thousands of products."
The Independent
RYANAIR BOSS STILL EYES AER LINGUS TAKEOVER AS LEGACY
Michael O'Leary, chief executive of Europe's biggest low-cost airline Ryanair(RYA.I), has said that he expects to stand down in the "next two or three years", but only when the airline has succeeded in taking control of Aer Lingus. Mr O'Leary, who has been in charge of Ryanair for 15 years, admitted that an outright bid for the Irish flag-carrier is now unlikely, but said: "We'll let them mismanage Aer Lingus for the next two years, and they'll then come back and ask us to rescue it."
WWE AGREES NEW FIVE-YEAR DEAL WITH BSKYB
World Wrestling Entertainment has signed a new five-year deal with BSkyB(BSY.L) The deal is an extension to a contract that has been in operation since Sky launched its UK satellite service 20 years ago. Sky will show more than 10 hours of action every week. WWE, formerly the WWF, was forced to rebrand itself after a battle with the World Wildlife Fund.
TREASURY DENIES FORMAL PROBE INTO BANK PROFITS
The Treasury has moved to distance itself from reports at the weekend that the City Minister Lord Myners is to launch an investigation into investment banks returning to bumper profits. A spike in advisory work and fundraising fees heralds record profit numbers being reported by banks. The Treasury said that while Mr Myners would in December make speeches on the issue, a formal inquiry was not expected.
The Guardian
CONSERVATIVES LOOK TO BREAK UP SIX ENERGY FIRMS
The Conservative party's policy paper on energy is expected to contain proposals calling for the break up of the "Big Six" energy firms. The move, put forward by shadow secretary for energy Greg Clark, is intended to increase competition in the sector and reduce bills, but has put the party on a collision course with the industry. The policy paper, which will probably be published by the end of the year, will feed into the party's election manifesto.
SEARCH FOR M&B CHAIRMAN HIT BY JOE LEWIS GRAB FOR MORE POWER
Mitchell & Butlers'(MAB.L) search for a new chairman risks being derailed by a boardroom struggle. It emerged this weekend that billionaire investor Joe Lewis, who owns 23 percent of the group, blocked the appointment of Archie Norman as chair and sources close to the situation suggest Lewis is pushing for a greater say in how the heavily indebted group is run. Analysts say Lewis may be agitating to bring forward the planned sale of M&B's property freehold.
EEF MANUFACTURER GROUP SEES CREDIT CRUNCH EASING
There are signs that the credit crunch is easing, with the EEF manufacturers' organisation reporting that the proportion of companies saying borrowing has become more expensive falling to the lowest level since the onset of the crunch. Companies are also finding it easier to secure loans. The organisation urged the government not to kill off the nascent recovery by ending its economic stimulus programme.
Prepared for Reuters by Durrants ($1=.6105 Pound)
Source: http://www.reuters.com
PRESS DIGEST - British business - Nov 30 Added: (29.11.2009)
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