Comment & Analysis

Thursday November 19, 05:31 AM
Glance-PRESS DIGEST - British business - Nov 19

The Daily Telegraph LLOYDS GETS EU GO-AHEAD AS IT PRICES 'CO-COS' TO GO European Union competition commissioner Neelie Kroes has granted approval for the state aid provided to Lloyds Banking (LSE: LLOY.L - news) Group. Kroes also gave the go-ahead to restructuring at Belgian bank KBC and Dutch bank ING. Kroes is yet to rule on the Royal Bank of Scotland (LSE: RBS.L - news) , though clearance is expected to be a formality subject to some minor changes. Lloyds is raising 13.5 billion pounds in a rights issue and nine billion pounds by converting debt into hybrid capital instruments known as 'contingent capital', or 'co-cos'. LADBROKES BEEFS UP NON-EXECUTIVE FIELD Sly Bailey, chief executive of newspaper group Trinity (A053070.KQ - news) Mirror, and Darren Shapland, chief financial officer at J Sainsbury (LSE: SBRY.L - news) , have been appointed non-executive directors at betting group Ladbrokes (LSE: LAD.L - news) . Ladbrokes chief executive Chris Bell (BELN.SW - news) said: 'They are two very smart young people who will bring a new perspective to the board.' None of the existing non-executive directors are to be replaced and the addition of Bailey and Shapland to the board brings the number of non-executives to eight. Ladbrokes has four executive directors. BSKYB NOT RULING OUT BOLT-ON ACQUISITIONS, SAYS DARROCH Jeremy Darroch, chief executive of satellite broadcaster BSkyB (LSE: BSY.L - news) , told the Morgan Stanley Technology, Media and Telecoms conference in Barcelona that BSkyB is open to making 'bolt-on' acquisitions 'if they deliver good financial returns'. Darroch said the broadcaster was also 'acutely aware' of the need to see returns from investments in broadband and high definition technologies, and that international expansion was 'not a priority'. Shares in BSkyB closed up six pence at 550.5 pence. The Times GRANT THORNTON SLIPS FURTHER BEHIND THE BIG FOUR The fifth-largest accounting firm in the UK, Grant Thornton, has revealed a four percent fall in full-year revenue to 378 million pounds, with profit per partner falling by 19 percent to 201,000 pounds. Although the results were not disastrous in the context of the present financial situation, they will be disappointing for observers hoping that Grant Thornton and its nearest competitor BDO Stoy Hayward could pose a threat to the 'Big Four' accountancy firms -- Deloitte, PriceWaterhouseCoopers, Ernst & Young and KPMG. CORPORATE BONDS FOR THE MASSES IN LSE INVESTOR DRIVE The London Stock Exchange is planning to let small investors trade corporate bonds through a new electronic trading platform, which will be set up in February. Formerly, the minimum order size for most bonds was 50,000 pounds, with prices set in agreements between brokers rather than in a central marketplace. Under the new system, minimum order sizes will decline to a thousand pounds. Private brokers are reporting that interest in the instruments has skyrocketed as a result of the news. BARRATT HOPES ECO-VILLAGE WILL LAY THE FOUNDATIONS FOR ALL Work will begin on the UK's first zero-carbon housing development today. The 200 houses at Hanham Hall in Gloucestershire are being constructed by Barratt, who do not yet have an estimated cost for the development or for the properties once they have been built, as the development is the first of its kind. Allotments and greenhouses will be provided for residents, as will a shop selling local groceries and a biomass boiler. However, the Home Builders Federation has warned that the cost of a house in the area could be 30,000 pounds more than that of existing new-builds. The Independent CAPITA FALLS ON WORRIES OVER HITS FROM ARCH FUNDS Capita was the largest faller on the FTSE 100 share index on Wednesday, following the announcement by the outsourcing company that it may end up bearing costs connected to two suspended Arch funds. The company's shares fell five percent following the announcement that Capita Financial Managers, which administers the funds, was in talks with the FSA regarding the suspension of the funds and would not update the market until the end of the year. Capita also warned that CFM was still under pressure from increasing regulatory obligations and IT costs. BOVIS HOMES ADDS TO RECOVERY Bovis Homes reported on Wednesday an 83 percent hike in price reservations in the year to November (Frankfurt: A0Z24E - news) 13. Total (FP.NX - news) sales at the housebuilder increased to 2,178 homes, from 2,023 homes in 2008. The group echoed comments made by rivals Persimmon (LSE: PSN.L - news) and Barratt Developments (LSE: BDEV.L - news) , both of which spoke of improved conditions in the housing sector earlier in the week. It said: 'The mortgage market still remains difficult to access for first time buyers and other buyers requiring higher loan-to-value multiples.' Bovis said it expects current market trends to persist into 2011. LAND SECURITIES HERALDS END OF PROPERTY SLUMP The real estate and investment trust Land Securities (LSE: LAND.L - news) signalled the end of the property slump by reporting that adjusted net asset value had fallen by 4.7 percent during the first six months of the year to 565 pence, a better performance than the market had expected. Land's chief executive Francis Salway was upbeat on the housing markets prospects, saying: 'Right now there are more buyers than sellers in the property market, and irrespective of any clever analysis, that will lead to strengthening prices.' The Guardian US AND ITALIAN FIRMS JOIN CADBURY FEEDING FRENZY Both Ferrero and Hershey (NYSE: HSY - news) have declared interest in some form of deal with Cadbury (LSE: CBRY.L - news) to prevent it being taken over by Kraft. Formal statements released by the two companies did not acknowledge they were working together, but sources have said that they are considering combining their finances to make an offer for the British confectioner. Cadbury has already dismissed an offer from Kraft and would prefer to remain independent, which union bosses have said would be the best outcome for Cadbury's 46,000 workers. HIGH (HCO.NX - news) -FLYING DUTCHMAN NOT JUST ANY RETAIL BOSS - HE'S THE M&S BOSS Marks and Spencer (LSE: MKS.L - news) has announced the appointment of its new chief executive, Dutchman Marc Bolland. He joins M&S from Morrisons, where he enjoyed great success by increasing gains in the supermarket's middle class market share. M&S shares climbed to a 17-month high after the announcement. Sir Stuart Rose earned the ire of the company's investors when he assumed the dual role of executive chairman and will be scaling back his commitment to the company once Bolland is in place. THE BLUE FACTOR: ASDA SAVIOUR AND FORMER TORY MP GETS THE. Former Conservative MP Archie Norman has been made chairman of ITV (LSE: ITV.L - news) , a move that will aid the broadcaster under a future Conservative government. Norman (Oslo: NORMAN.OL - news) has a reputation for turning around failing businesses, which he did to great effect with Asda (NYSE: WMT - news) in the 1990s. Norman is to take up the role in January and will be searching for a new chief executive in the coming month. ITV has publicly endured difficulty in hunting for a new chairman, having failed to sign two earlier candidates. ITV's share price rose by 3.5 percent on the day Norman's appointment was announced. Prepared for Reuters by Durrants Keywords: PRESS DIGEST British business Nov 19

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