Daily Telegraph
BLACKSTONE MOVES TO TAKE OVER GALA CORAL
Blackstone has been allowed to conduct due diligence at Gala Coral after making an audacious late intervention in the bingo group's 2.5 billion debt restructuring. Blackstone could make a 250 to 300 million pound cash injection in Gala, which was valued at five billion at its peak, in return for a majority stake. Gala's private equity owners -- Cinven, Candover and Permira -- have already agreed a deal with junior lenders designed to keep the business' bingo and gaming divisions together. However, this would be usurped should Blackstone's offer be accepted.
TESCO MOVES CLOSER TO FULL BANKING WITH IT SYSTEM
Fiserv has been appointed by Tesco to provide the software to enable it to become a full-service bank. Fiserv's involvement, as one of the world leaders in providing retail banking software, will turn the supermarket from a provider of a collection of financial products into an integrated, full-service bank which is expected to make great inroads now that competitors are struggling. David McCreadie, commercial director of Tesco Bank, called for patience in a meeting with investors, saying it would take time to develop the correct proposition on current accounts and that expanding into mortgage lending would require a broader source of funding.
MERGE WITH HERSHEY, ANALYST TELLS CADBURY
Richard Royden, head of GFI's European Special Solutions group, has called on Cadbury to merge with Hershey with a dual-listing of the company's shares on the London and New York markets. Royden told Cadbury chief executive Todd Stitzer in a letter that the move would be its best defence against Kraft's unwanted 10 billion pound bid. Fifty-five percent of the company would be listed in London and 45 percent in New York under Royden's analysis, minimising debt issuance and avoiding 'equity dilution for existing Hershey shareholders'.
The Times
UKFI'S FORMER HEAD IS SET TO JOIN ROTHSCHILD
NM Rothschild is expected to announce the recruitment of John Kingman, former chief executive of UKFI, as managing director on Monday. Kingman will advise 'a number of corporate clients' when he begins his new role in March. UKFI was set up a year ago to manage the government's stakes in Royal Bank of Scotland, Lloyds Banking Group and Bradford & Bingley's mortgage book. The institution has had to walk a difficult path in convincing investors it was acting on commercial grounds while also adhering to the political will of the Treasury.
RIO'S CLOUD PEAK COAL FLOAT FAILS TO SET INVESTORS ALIGHT
Shares in Rio Tinto's Cloud Peak coal operations fell from 15 dollars to 14.45 dollars on their first day of trading on the New York Stock Exchange. The listing is part of a strategy Rio has for divesting non-core assets and reducing its debt burden, with the flotation raising 434 million dollars for the mining group. Francis Gaskins of research website IPOdesktop.com said: 'There's investor push-back because (the money raised) is not going back to the company and it's not for growth. It's just a Rio Tinto bailout.'
LACK OF M&A BUSINESS CUTS REVENUE AT LINKLATERS
Linklaters saw revenue fall by almost 10 percent in the half-year ending October 31 despite winning big legal work in dealing with the economic downturn. A lack of mergers and acquisition activity was blamed for revenues falling from 653 million to 591 million pounds year-on-year. Linklaters earned almost 70 million pounds for its work on the European division of Lehman Brothers' administration and is continuing to work with Royal Bank of Scotland. Simon Davies, managing partner of Linklaters, said M&A activity had recovered in recent weeks, particularly in emerging markets such as India, Brazil and China.
The Independent
BARCAP TAKES OVER CRESCENT FROM MORGAN
Morgan Stanley has handed over its Crescent property business to Barclays Capital, drawing a line under the 6.5 billion dollar deal that was struck in 2007 but quickly soured. Morgan Stanley is to transfer ownership of the business to BarCap in exchange for Barclays taking responsibility for all liabilities of loans relating to Crescent. Morgan's plans to put Crescent's assets into real estate flopped when the market froze. Barclays acquired Crescent in a joint venture with its co-founder John Goff.
GARTMORE SETS HARE RUNNING ON FLOTATION BOOM WITH BILLION POUND LISTING
Gartmore intends to list its shares on the London Stock Exchange next month, valuing the business at at least one billion pounds. The flotation is intended to raise 250 million pounds for the company, enabling it to reduce its 400 million pound debt to 150 million. Forty-three percent of Gartmore is owned by its management, who will be allowed to cash in up to 20 percent of their stock. Jeff Meyer, the chief executive, said: 'The market has been recovering. There are a lot of companies likely to come to market next year. We thought we would open the gateway.'
FULLER, SMITH & TURNER BUOYANT AMID DOWNTURN
The pubs and brewing group Fuller, Smith and Turner has announced pre-tax profits of 14.1 million pounds for the 26 weeks to September 26, an increase of 18 percent. The boost has been attributed to low interest rates, good weather and a reduction of costs, including pay. The increase in VAT and absence of some of these factors could mean that the company's success does not continue. The company also gained from acquiring seven managed pubs in the West End from Punch Taverns .
THE GUARDIAN
STATE BANKS 'UNDERMINING BUILDING SOCIETIES'
Nationwide Building Society has criticised state-backed banks for distorting the savings market by pricing their accounts 'uneconomically'. Nationwide has announced profits down to 117 million pounds from 322 million pounds at the same time last year and has said that its commitment to keeping mortgage interest rates more closely tied to the Bank of England's interest rate has cost them more than 450 million pounds a year. Nationwide chief executive Graham Beale also said that new minimum capital amounts dictated by European law would disadvantage building societies, whereas banks would be able to source capital from shareholders.
MORE THRESHERS SHOPS CLOSE AS BUYERS LOSE INTEREST
First Quench, the group that owns Threshers and Wine Rack, is intending to close a further 381 of its stores, resulting in up to 2,000 further job losses. An initial round of closures and job losses was announced two weeks ago, but lack of interest in the purchase of the remaining stores has caused administrators KPMG to make more cuts. Richard Fleming, one of the administrators from KPMG, has said he is optimistic about selling 'a significant number' of the remaining 500 stores as going concerns.
BRITISH FARMERS TO GET MORE THAN A SLICE OF THE HOVIS FLOUR MARKET
Hovis is planning to exclusively purchase wheat that was grown in Britain. Currently Hovis uses between 25 and 50 percent British wheat with the remainder being imported from Canada. Trials of growing the Canadian strain of wheat have been conducted in Britain for the last five years and Hovis' decision will pump 18 million pounds into the British farming industry. Other big bread brands are continuing to import wheat from overseas, but Warburtons is to launch a loaf made entirely from British wheat.
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST British business Nov 21
COPYRIGHT Copyright Thomson Reuters 2009. 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.
BLACKSTONE MOVES TO TAKE OVER GALA CORAL
Blackstone has been allowed to conduct due diligence at Gala Coral after making an audacious late intervention in the bingo group's 2.5 billion debt restructuring. Blackstone could make a 250 to 300 million pound cash injection in Gala, which was valued at five billion at its peak, in return for a majority stake. Gala's private equity owners -- Cinven, Candover and Permira -- have already agreed a deal with junior lenders designed to keep the business' bingo and gaming divisions together. However, this would be usurped should Blackstone's offer be accepted.
TESCO MOVES CLOSER TO FULL BANKING WITH IT SYSTEM
Fiserv has been appointed by Tesco to provide the software to enable it to become a full-service bank. Fiserv's involvement, as one of the world leaders in providing retail banking software, will turn the supermarket from a provider of a collection of financial products into an integrated, full-service bank which is expected to make great inroads now that competitors are struggling. David McCreadie, commercial director of Tesco Bank, called for patience in a meeting with investors, saying it would take time to develop the correct proposition on current accounts and that expanding into mortgage lending would require a broader source of funding.
MERGE WITH HERSHEY, ANALYST TELLS CADBURY
Richard Royden, head of GFI's European Special Solutions group, has called on Cadbury to merge with Hershey with a dual-listing of the company's shares on the London and New York markets. Royden told Cadbury chief executive Todd Stitzer in a letter that the move would be its best defence against Kraft's unwanted 10 billion pound bid. Fifty-five percent of the company would be listed in London and 45 percent in New York under Royden's analysis, minimising debt issuance and avoiding 'equity dilution for existing Hershey shareholders'.
The Times
UKFI'S FORMER HEAD IS SET TO JOIN ROTHSCHILD
NM Rothschild is expected to announce the recruitment of John Kingman, former chief executive of UKFI, as managing director on Monday. Kingman will advise 'a number of corporate clients' when he begins his new role in March. UKFI was set up a year ago to manage the government's stakes in Royal Bank of Scotland, Lloyds Banking Group and Bradford & Bingley's mortgage book. The institution has had to walk a difficult path in convincing investors it was acting on commercial grounds while also adhering to the political will of the Treasury.
RIO'S CLOUD PEAK COAL FLOAT FAILS TO SET INVESTORS ALIGHT
Shares in Rio Tinto's Cloud Peak coal operations fell from 15 dollars to 14.45 dollars on their first day of trading on the New York Stock Exchange. The listing is part of a strategy Rio has for divesting non-core assets and reducing its debt burden, with the flotation raising 434 million dollars for the mining group. Francis Gaskins of research website IPOdesktop.com said: 'There's investor push-back because (the money raised) is not going back to the company and it's not for growth. It's just a Rio Tinto bailout.'
LACK OF M&A BUSINESS CUTS REVENUE AT LINKLATERS
Linklaters saw revenue fall by almost 10 percent in the half-year ending October 31 despite winning big legal work in dealing with the economic downturn. A lack of mergers and acquisition activity was blamed for revenues falling from 653 million to 591 million pounds year-on-year. Linklaters earned almost 70 million pounds for its work on the European division of Lehman Brothers' administration and is continuing to work with Royal Bank of Scotland. Simon Davies, managing partner of Linklaters, said M&A activity had recovered in recent weeks, particularly in emerging markets such as India, Brazil and China.
The Independent
BARCAP TAKES OVER CRESCENT FROM MORGAN
Morgan Stanley has handed over its Crescent property business to Barclays Capital, drawing a line under the 6.5 billion dollar deal that was struck in 2007 but quickly soured. Morgan Stanley is to transfer ownership of the business to BarCap in exchange for Barclays taking responsibility for all liabilities of loans relating to Crescent. Morgan's plans to put Crescent's assets into real estate flopped when the market froze. Barclays acquired Crescent in a joint venture with its co-founder John Goff.
GARTMORE SETS HARE RUNNING ON FLOTATION BOOM WITH BILLION POUND LISTING
Gartmore intends to list its shares on the London Stock Exchange next month, valuing the business at at least one billion pounds. The flotation is intended to raise 250 million pounds for the company, enabling it to reduce its 400 million pound debt to 150 million. Forty-three percent of Gartmore is owned by its management, who will be allowed to cash in up to 20 percent of their stock. Jeff Meyer, the chief executive, said: 'The market has been recovering. There are a lot of companies likely to come to market next year. We thought we would open the gateway.'
FULLER, SMITH & TURNER BUOYANT AMID DOWNTURN
The pubs and brewing group Fuller, Smith and Turner has announced pre-tax profits of 14.1 million pounds for the 26 weeks to September 26, an increase of 18 percent. The boost has been attributed to low interest rates, good weather and a reduction of costs, including pay. The increase in VAT and absence of some of these factors could mean that the company's success does not continue. The company also gained from acquiring seven managed pubs in the West End from Punch Taverns .
THE GUARDIAN
STATE BANKS 'UNDERMINING BUILDING SOCIETIES'
Nationwide Building Society has criticised state-backed banks for distorting the savings market by pricing their accounts 'uneconomically'. Nationwide has announced profits down to 117 million pounds from 322 million pounds at the same time last year and has said that its commitment to keeping mortgage interest rates more closely tied to the Bank of England's interest rate has cost them more than 450 million pounds a year. Nationwide chief executive Graham Beale also said that new minimum capital amounts dictated by European law would disadvantage building societies, whereas banks would be able to source capital from shareholders.
MORE THRESHERS SHOPS CLOSE AS BUYERS LOSE INTEREST
First Quench, the group that owns Threshers and Wine Rack, is intending to close a further 381 of its stores, resulting in up to 2,000 further job losses. An initial round of closures and job losses was announced two weeks ago, but lack of interest in the purchase of the remaining stores has caused administrators KPMG to make more cuts. Richard Fleming, one of the administrators from KPMG, has said he is optimistic about selling 'a significant number' of the remaining 500 stores as going concerns.
BRITISH FARMERS TO GET MORE THAN A SLICE OF THE HOVIS FLOUR MARKET
Hovis is planning to exclusively purchase wheat that was grown in Britain. Currently Hovis uses between 25 and 50 percent British wheat with the remainder being imported from Canada. Trials of growing the Canadian strain of wheat have been conducted in Britain for the last five years and Hovis' decision will pump 18 million pounds into the British farming industry. Other big bread brands are continuing to import wheat from overseas, but Warburtons is to launch a loaf made entirely from British wheat.
Prepared for Reuters by Durrants
Keywords: PRESS DIGEST British business Nov 21
COPYRIGHT Copyright Thomson Reuters 2009. 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.
© 2009 AFX News
