Tuesday November 24, 04:22 AM
Glance-PRESS DIGEST - British business - Nov 24
Tuesday 24 November (Frankfurt: A0Z24E - news) 2009
The Times
TESCO (LSE: TSCO.L
- news) 'S PETROL PRICES FUEL DEBATE OVER COMPETITION
According to new data, Tesco is charging as much as
3 pence (5 cents) a litre more for petrol at fuelling stations
in locations where there is no rival supermarket. The figures
for the price of diesel are more pronounced. When compared with
its cheapest stores, the unopposed price of diesel is six pence
more. Tesco's diesel price is more expensive than Asda (NYSE: WMT - news) ,
Morrison and Sainsbury (LSE: SBRY.L - news) in 167 stores across the
country. The data highlights the Competition Commission's
proposal for a competition test which would make it harder to
open a store in areas not contested by rivals.
TRAVELODGE COMPLAINS ABOUT PREMIER INN ADVERTS
The e-commerce director for Travelodge has written to the
advertising standards agency complaining that its rival's
advertising campaign is misleading. The Lenny Henry-fronted
Premier Inn campaign advertises rooms at 29 pounds a night but
when Travelodge's Charlie Herbert accessed the site he found
that it was 'very near impossible' to find rooms at that price.
Mr Herbert writes: 'In most cases, consumers could pay 100
percent more, depending on which part of the website they
purchase from.' A spokeswoman for Premier Inn said that the
anomaly of higher prices would be amended next week.
GULF AIR RESTRUCTURING COULD COST ROLLS ROYCE $1.5 BILLION
Rolls Royce (LSE: RR.L - news) is facing the consequences of the
cancellation of 20 Airbus A320 aircraft ordered by Gulf Air, as
the airline strives to save $2.65 billion over the next five
years. The Middle East carrier announced yesterday it would
renegotiate contracts with Airbus (Paris: NL0000235190 - news) , Boeing (NYSE: BA - news) and
Rolls Royce, a deal which was worth $1.5 billion for the
manufacturer of the engines on the latest long-haul aircraft.
TEMPUS:
Mitie (at 11 times next year's earnings, reasonable
hold)
RM (buy)
Hyder Consulting (LSE: HYC.L - news) (buy)
The Daily Telegraph
MITIE REPORTS NINE PERCENT PROFIT JUMP
Mitie, the support services group, has reported a
pre-tax profits increase of 9 percent to 39.6 million pounds.
Ruby McGregor-Smith, chief executive, said public spending cuts
would boost the company's business: 'The deficit is being cut
and pressure on the budget always leads to outsourcing'.
COSMEN PRESSURE ON NATEX BOARD
Jorge Cosmen, deputy chairman of National Express (LSE: NEX.L - news) ,
has raised his family's stake in the company to 19.5 percent and
will now seek clarification from the board regarding the
transport company's strategy. Mr Cosmen purchased 750,000 shares
at 3.569 pence, after buying 500,000 shares last week, and it is
expected that he will request a progress report on the issue at
a board meeting being held on Tuesday.
BORDERS FEARS GROW AS ONLINE BOOK ORDERS ARE FROZEN
Borders UK, the books retailer, has prompted fears that it
could be put into administration after it stopped taking orders
on its website leading to reports that the company is worried
that it does not have enough cash to trade through Christmas. In
2008, pre-tax losses increased from 10.3 million pounds to 13.6
million pounds. In its accounts, published in August, Ernst and
Young raised doubts about its ability to continue as a going
concern.
QUESTOR:
VT Group (LSE: VTG.L - news) (buy)
RM (buy)
The Independent
CREDITORS BACK BLACKS LEISURE RESCUE PLANS
Troubled sporting goods retailer Blacks Leisure is set to go
ahead with a proposed company voluntary arrangement, after
receiving the backing of creditors on Monday. The vote saw
around 98 percent of the group's lenders support the plan.
Blacks has reached a compromise with around 100 of its retail
store landlords and has set aside 7.25 million pounds to
compensate them for the cancellation of long-term lease
obligations. In the region of 4,300 jobs would have been at risk
if the group had entered administration.
GO-AHEAD BIDS 20 MILLION POUNDS FOR PLYMOUTH BUSES
Go-Ahead has tabled a 20 million pound bid for
Plymouth City Bus after being named as the preferred bidder by
owners Plymouth City Council. Plymouth City Bus, which operates
a fleet of 173 buses and 11 coaches, saw revenues of 17.6
million pounds in the financial year to March 31 and the move
comes as Go-Ahead looks to increase its regional footprint.
WAITROSE TRIALS RANGE IN SHELL PETROL STATIONS
Waitrose has announced that it is to offer a selected range
of products at Shell (LSE: RDSB.L - news) petrol stations on a trial basis.
The trial will initially take place at three Shell forecourts in
the Birmingham area and will be extended to other Shell stations
if successful. Waitrose intends to open a further 300
convenience stores over the next five years and is in talks with
Boots (LSE: AB.L - news) about offering ranges in each other's stores. Following a
successful trial, Waitrose also announced that it is to open
more outlets in service stations operated by Welcome Break.
INVESTMENT COLUMN:
Wm Morrison (speculative buy)
Mitie (hold)
Armour Group (LSE: AMR.L - news) (buy)
Keywords: PRESS DIGEST British business Nov 24
The Guardian
LLOYDS CUTS ANOTHER 800 JOBS AFTER LOSING EQUITABLE CONTRACT
Lloyds Banking Group (LSE: LLOY.L - news) will set the terms of its 22.5
billion pound rights issue which will require the taxpayer to
buy 5.8 billion pounds of new shares. The bank will also
announce the loss of a further 800 jobs at administrative
centres, taking the total number of cuts since the start of the
year to 15,000. The rights issue is expected to be priced at
about 33 pence at a ratio of 1.5 new shares for each existing
share. 570 job losses will be centred on Aylesbury in
Buckinghamshire because the bank is moving roles. A further 340
jobs are under threat because Equitable Life, which uses the
centre, is transferring to an Indian company, HCL.
NESTLE TALK ADDS TO CADBURY BID FRENZY
Talk of a bid battle sent Cadbury (LSE: CBRY.L - news) 's shares up to
their highest level since early September as Nestle (4707.KL - news)
resurfaced as a potential counter-bidder to Kraft. Other
firms to have expressed an interest are Ferrero and Hershey . A union between Hershey (NYSE: HSY - news) and Cadbury would probably
result in fewer job losses than a takeover by Kraft due to a
strong cultural fit. According to Bloomberg, Nestle said it was
looking at its options with a view to taking part in the
break-up bid for Cadbury. Cadbury shares are now worth 43
percent more than in early September and closed up 13.5 pence at
814 pence.
NORTHUMBRIAN RULES OUT RIGHTS ISSUE AS PROFIT RISES
Northumbrian Water said it will not proceed with a
rights issue and reported pre-tax profits for the first half of
87 million pounds, up nearly 13 percent. The announcement
concerning the rights issue comes ahead of a ruling on prices by
the regulator. Northumbrian's finance director Chris Green said:
'The need to raise rights issues.is certainly not on the agenda
for us.' The industry regulator is expected to rule on price
cuts that could see water companies at risk of cutting dividends
or raising cash to fund investment.
Prepared for Reuters by Durrants
($1=.6020 Pound)
Keywords: PRESS DIGEST British business Nov 24 =3
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