The Mail on Sunday
CHEAP RIVALS SQUEEZE M&S
Marks & Spencer has been squeezed by the competition from discount retailers coupled with the weakening pound, which is adding to the cost of importing clothing. Last week, Sir Stuart Rose, executive chairman, warned that sales had slowed dramatically. Sir Stuart said: 'Since the interest rate cut two weeks ago I think people have been very circumspect about their spending ... I don't think there is a retailer I've spoken to who hasn't seen a softening.'
NEW STAR MULLS CITY OFFICE SALE
New Star, the stricken asset manager, is considering selling the largest asset of its flagship 1.1 billion pound UK commercial property fund. The development comes as commercial property values plunge further amid intensifying economic gloom. New Star's Roger Dossett said: 'We have had an inquiry and we will consider offers.' The fund is down 23 per cent in one year, with a decline of 12 per cent in the last quarter alone.
BOOST FOR BRANSON'S GATWICK BID
Virgin Atlantic has teamed up with Manchester Airports Group and potentially secured investment funding from Goldman Sachs, giving its bid for Gatwick airport a major boost. According to a Virgin Atlantic source, MAG is joining forces with Sir Richard Branson's airline along with easyJet , the budget carrier, to make a 2.5 billion pound bid before Christmas. The source also confirmed Virgin Atlantic was in negotiations with Goldman's Infrastructure Investment Group, and that a finance deal was likely.
The Sunday Times
GALA BOSS QUITS EARLY
John Kelly, the chairman of betting and gaming giant Gala Coral, is to leave the company at Christmas -- 10 months earlier than expected. His departure comes as the company cuts its earnings forecast for next year by almost ten per cent amid continuing tough trading conditions. It is understood that Mr Kelly decided to leave early on his own accord, and has not been asked to quit by the company's shareholders.
EIRCOM PUT ON THE BLOCK
This week, Eircom, Ireland's main telecoms company, will be formally put up for sale when Babcock & Brown, its distressed Australian owner, appoints UBS to locate a buyer. It is likely that any buyer will create a new parent company so as not to disturb a 4 billion euro debt package which Eircom has in place. ESOT, which has a 35-per-cent holding in Eircom, would then inject itself into the structure.
LUGGAGE FIRM TIE-UP
First Luggage, a British firm that collects and delivers holidaymakers' luggage so they can avoid taking it on a plane, has bagged a merger with Sports Express, its U.S. rival. First Luggage will own 60 per cent of the enlarged group, which will have sales of 3.4 million pounds. The company claims to have lost only one piece of luggage in four years, compared with the 20 million items lost by airlines last year.
The Sunday Telegraph
CHEMICALS GIANT INEOS HIRES PWC TO REFORMULATE BUSINESS PLAN
Ineos is set to appoint advisers to develop a new business plan in an attempt to tackle the chemicals giant's heavily indebted balance sheet. Ineos's founder Jim Ratcliffe is recruiting accounting firm PWC to help ensure that the group successfully navigates what could be a prolonged downturn. PWC's appointment comes days after Ineos, one of Britain's biggest private companies, began the renegotiation of its banking arrangements.
DAVIES SETS DESIGNS ON NEW RANGE AFTER M&S SPLIT
Veteran fashion designer George Davies is planning a new venture just days after revealing that he will step down as chairman of Marks & Spencer's Per Una clothing range at the end of next month. Mr Davies, who was behind Next and George at Asda, is plotting to launch a mid-market fashion brand for men and women over 25. Mr Davies said: 'People say, because of the economy, it is not the time to do anything. But now is the time to do things.'
ITV RIVALS SAY BOSS FAILS TO MAKE GRADE
Michael Grade, ITV executive chairman, faces another hurdle this week in his battle with regulators. A report by Perspective, a division of Ingenious Media, disputes his claims that ITV subsidises its regional licence holders by 25 million pounds, providing them with the ITV1 network schedule of programmes below cost. The report was commissioned by ITV's licence holders as part of Ofcom's review of public service broadcasting. A spokesman for ITV said: 'We have called for the reform of the ITV Networking arrangements to reflect purely commercial, market driven agreements with no subsidies in either direction.'
The Independent on Sunday
FOUR CANDIDATES INTERVIEWED FOR CROSSRAIL CEO POST
First-round interviews for the chief executive to build Crossrail took place on Friday. It is believed that a total of four candidates have been interviewed, including the chief executive at London & Continental Railways, Rob Holden. Last week, Terry Morgan, the chief executive of London Underground, was appointed as Crossrail's chairman. Mr Morgan is due to take up his role next November.
US EMBASSY TO MOVE IN AS HR OWEN SURRENDERS LEASE
HR Owen's shareholders will vote on a 10-million-pound property transaction on Monday morning, which could give the U.S. Embassy a new home. An extraordinary meeting at the upmarket car dealership is expected to see investors approve the early surrender of the lease on its after-sales services site in Wandsworth, South London. The lease, which is currently due to expire in 2017, would instead be terminated some time between 2010 and 2012.
MIDDLE EAST FUNDS GO FOR DEBENHAMS' OXFORD ST STORE.
Middle Eastern sovereign wealth funds are set to swoop on the flagship Debenhams store in London's Oxford Street after the collapse of a 150-million-pound deal with a Ukrainian investor. Property giant British Land, which owns the building, is believed to have terminated the deal as it was unlikely to be completed in the desired timeframe. Several Middle Eastern sovereign wealth funds are known to be interested, and British Land is evaluating their offers.
The Observer
BARCLAYS BOSS GETS PAYOUT DESPITE 'NO BONUS' PLEDGE
It has emerged that Roger Jenkins, the multi-millionaire Barclays executive, is exempt from the bank's decision to scrap bonuses. It is believed that Mr Jenkins is the most highly paid man at the bank, and is the architect of a controversial 5.8-billion-pound capital raising from Middle Eastern investors. John Varley, chief executive, will forgo his 2008 bonus payout, along with executive directors Bob Diamond, Chris Lucas and Frits Seegers.
LOSS-MAKING DSG TO CANCEL DIVIDEND PAYOUT
DSG International, the owner of PC World and Curry's, is expected to announce it is waiving its interim dividend this week, after falling into the red during the first six months of the year. Analysts predict John Bowett, chief executive, may also halt the year-end payment to shareholders as he battens down the hatches ahead of what is expected to be one of the toughest Christmas trading periods on record. The group has been raising service standards and trying a new look at its PC World and Curry's chains, but one analyst described the cosmetic exercise as a waste of time.
WEAK POUND WILL DOG TOY PRICES
Toy retailers have warned that the weakness of sterling could affect prices next year. Gary Grant, managing director of The Entertainer, says retailers will be forced to pass on higher import costs to customers because this year the dollar/pound exchange rate has weakened by 25 per cent to 1.50 dollars. This fall is significant because, like clothing, most toys in British stores are sourced in Asia and priced in dollars.
Prepared for Reuters by Durrants
COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
CHEAP RIVALS SQUEEZE M&S
Marks & Spencer has been squeezed by the competition from discount retailers coupled with the weakening pound, which is adding to the cost of importing clothing. Last week, Sir Stuart Rose, executive chairman, warned that sales had slowed dramatically. Sir Stuart said: 'Since the interest rate cut two weeks ago I think people have been very circumspect about their spending ... I don't think there is a retailer I've spoken to who hasn't seen a softening.'
NEW STAR MULLS CITY OFFICE SALE
New Star, the stricken asset manager, is considering selling the largest asset of its flagship 1.1 billion pound UK commercial property fund. The development comes as commercial property values plunge further amid intensifying economic gloom. New Star's Roger Dossett said: 'We have had an inquiry and we will consider offers.' The fund is down 23 per cent in one year, with a decline of 12 per cent in the last quarter alone.
BOOST FOR BRANSON'S GATWICK BID
Virgin Atlantic has teamed up with Manchester Airports Group and potentially secured investment funding from Goldman Sachs, giving its bid for Gatwick airport a major boost. According to a Virgin Atlantic source, MAG is joining forces with Sir Richard Branson's airline along with easyJet , the budget carrier, to make a 2.5 billion pound bid before Christmas. The source also confirmed Virgin Atlantic was in negotiations with Goldman's Infrastructure Investment Group, and that a finance deal was likely.
The Sunday Times
GALA BOSS QUITS EARLY
John Kelly, the chairman of betting and gaming giant Gala Coral, is to leave the company at Christmas -- 10 months earlier than expected. His departure comes as the company cuts its earnings forecast for next year by almost ten per cent amid continuing tough trading conditions. It is understood that Mr Kelly decided to leave early on his own accord, and has not been asked to quit by the company's shareholders.
EIRCOM PUT ON THE BLOCK
This week, Eircom, Ireland's main telecoms company, will be formally put up for sale when Babcock & Brown, its distressed Australian owner, appoints UBS to locate a buyer. It is likely that any buyer will create a new parent company so as not to disturb a 4 billion euro debt package which Eircom has in place. ESOT, which has a 35-per-cent holding in Eircom, would then inject itself into the structure.
LUGGAGE FIRM TIE-UP
First Luggage, a British firm that collects and delivers holidaymakers' luggage so they can avoid taking it on a plane, has bagged a merger with Sports Express, its U.S. rival. First Luggage will own 60 per cent of the enlarged group, which will have sales of 3.4 million pounds. The company claims to have lost only one piece of luggage in four years, compared with the 20 million items lost by airlines last year.
The Sunday Telegraph
CHEMICALS GIANT INEOS HIRES PWC TO REFORMULATE BUSINESS PLAN
Ineos is set to appoint advisers to develop a new business plan in an attempt to tackle the chemicals giant's heavily indebted balance sheet. Ineos's founder Jim Ratcliffe is recruiting accounting firm PWC to help ensure that the group successfully navigates what could be a prolonged downturn. PWC's appointment comes days after Ineos, one of Britain's biggest private companies, began the renegotiation of its banking arrangements.
DAVIES SETS DESIGNS ON NEW RANGE AFTER M&S SPLIT
Veteran fashion designer George Davies is planning a new venture just days after revealing that he will step down as chairman of Marks & Spencer's Per Una clothing range at the end of next month. Mr Davies, who was behind Next and George at Asda, is plotting to launch a mid-market fashion brand for men and women over 25. Mr Davies said: 'People say, because of the economy, it is not the time to do anything. But now is the time to do things.'
ITV RIVALS SAY BOSS FAILS TO MAKE GRADE
Michael Grade, ITV executive chairman, faces another hurdle this week in his battle with regulators. A report by Perspective, a division of Ingenious Media, disputes his claims that ITV subsidises its regional licence holders by 25 million pounds, providing them with the ITV1 network schedule of programmes below cost. The report was commissioned by ITV's licence holders as part of Ofcom's review of public service broadcasting. A spokesman for ITV said: 'We have called for the reform of the ITV Networking arrangements to reflect purely commercial, market driven agreements with no subsidies in either direction.'
The Independent on Sunday
FOUR CANDIDATES INTERVIEWED FOR CROSSRAIL CEO POST
First-round interviews for the chief executive to build Crossrail took place on Friday. It is believed that a total of four candidates have been interviewed, including the chief executive at London & Continental Railways, Rob Holden. Last week, Terry Morgan, the chief executive of London Underground, was appointed as Crossrail's chairman. Mr Morgan is due to take up his role next November.
US EMBASSY TO MOVE IN AS HR OWEN SURRENDERS LEASE
HR Owen's shareholders will vote on a 10-million-pound property transaction on Monday morning, which could give the U.S. Embassy a new home. An extraordinary meeting at the upmarket car dealership is expected to see investors approve the early surrender of the lease on its after-sales services site in Wandsworth, South London. The lease, which is currently due to expire in 2017, would instead be terminated some time between 2010 and 2012.
MIDDLE EAST FUNDS GO FOR DEBENHAMS' OXFORD ST STORE.
Middle Eastern sovereign wealth funds are set to swoop on the flagship Debenhams store in London's Oxford Street after the collapse of a 150-million-pound deal with a Ukrainian investor. Property giant British Land, which owns the building, is believed to have terminated the deal as it was unlikely to be completed in the desired timeframe. Several Middle Eastern sovereign wealth funds are known to be interested, and British Land is evaluating their offers.
The Observer
BARCLAYS BOSS GETS PAYOUT DESPITE 'NO BONUS' PLEDGE
It has emerged that Roger Jenkins, the multi-millionaire Barclays executive, is exempt from the bank's decision to scrap bonuses. It is believed that Mr Jenkins is the most highly paid man at the bank, and is the architect of a controversial 5.8-billion-pound capital raising from Middle Eastern investors. John Varley, chief executive, will forgo his 2008 bonus payout, along with executive directors Bob Diamond, Chris Lucas and Frits Seegers.
LOSS-MAKING DSG TO CANCEL DIVIDEND PAYOUT
DSG International, the owner of PC World and Curry's, is expected to announce it is waiving its interim dividend this week, after falling into the red during the first six months of the year. Analysts predict John Bowett, chief executive, may also halt the year-end payment to shareholders as he battens down the hatches ahead of what is expected to be one of the toughest Christmas trading periods on record. The group has been raising service standards and trying a new look at its PC World and Curry's chains, but one analyst described the cosmetic exercise as a waste of time.
WEAK POUND WILL DOG TOY PRICES
Toy retailers have warned that the weakness of sterling could affect prices next year. Gary Grant, managing director of The Entertainer, says retailers will be forced to pass on higher import costs to customers because this year the dollar/pound exchange rate has weakened by 25 per cent to 1.50 dollars. This fall is significant because, like clothing, most toys in British stores are sourced in Asia and priced in dollars.
Prepared for Reuters by Durrants
COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2008 AFX News
