PRESS DIGEST - Financial Times - August 28

HESTER IN RECKONING TO SUCCEED GOODWIN AT RBS

Stephen Hester, the chief executive of British Land (BLND.L), has emerged as a candidate to succeed Sir Fred Goodwin as the head of Royal Bank of Scotland (RBS.L) after being appointed to the bank's board as a non-executive director. Institutional investors have recently been pressing for a clear succession plan for Sir Fred and chairman Sir Tom McKillop. RBS also announced that former ANZ Bank chief executive John McFarlane and Prudential Financial US chairman Arthur Ryan are to become non-executive directors.

CITY CALLS ON BROWN NOT TO HIT ENERGY PROFITS

The City has urged Gordon Brown to resist pressure from Labour backbenchers to introduce a windfall tax on energy companies. Pressure has been mounting on the prime minister after MPs signed a petition calling for windfall taxes on energy companies which have announced steep rises in profits after sharp rises in the cost of electricity and gas. John Cridland of the CBI said affected companies would be less likely to make British investments if the plan goes ahead.

INDUSTRY SEES GAP EMERGING IN WAGES

Incomes Data Services has released a report indicating that a wage gap is emerging in industry as successful employers give larger pay increases to offset inflation, while others who have been affected by rising costs have cut real wages. The IDS survey says that a quarter of pay rises were at or above 4.5 per cent in the three months to the end of July, with some of the largest payments made to those in the chemical, pharmaceutical and construction industries. Meanwhile, over a third of settlements in the same period were only at three percent, mostly in the not-for-profit and retail sectors.

M AND S CUTBACKS WORKER TO FACE HEARING

A worker at Marks and Spencer (MKS.L) who informed the media about the company's plans to cut redundancy pay for 70,000 staff is to be disciplined by the retailer, according to the GMB union. The GMB says the man, unnamed, works at the corporate head office in Central London, and has been suspended. Unions have expressed concern that the retailer is set to announce large-scale redundancies.

TAYLOR WIMPEY REASSURES ON DEBT

Taylor Wimpey (TW.L) has announced that it has not yet reached a deal to restructure its debts, but that it does expect an agreement by the end of the year. The company also dismissed rumours that it has convinced lenders to amend key covenants relating to its 1.7 billion pound debt. Shares in the group fell seven per cent to 48.25 pence, reversing gains it made on Tuesday on speculation relating to the rumoured agreement. The firm also announced a collapse in interim profits, reporting that it made a 1.5 billion pound pre-tax loss in the first half of the year.

WHITE CITY SUCCESS FOR WESTFIELD

The Australian shopping centre owner Westfield has reported that it has managed to almost entirely fill its new White City shopping mall in west London, despite the current gloomy retail environment. The group has reported a fall in first-half profits after the value of its US and UK investments dropped, but went on to say that it was bullish about the prospects for its shopping developments. The organisation's UK portfolio was 99 per cent leased at June 30.

TNS DEFIANT IN THE FACE OF GFK PULL-OUT

Taylor Nelson Sofres TNS.L is remaining defiant against a hostile takeover bid by WPP Group (WPP.L), but it has provided an indication of the price its board would accept after WPP rival GfK withdrew from bidding from the company. Both GfK and TNS had planned a nil-premium merger which was disrupted when WPP launched its hostile bid in July. GfK said that it ended its pursuit of TNS after failing to raise enough funds to counter WPP. TNS chief executive David Lowden said that a fair takeover price for the company is around 325 pence per share, far above WPP's standing offer of 270 pence.

PADDY POWER STARTS TO FIND THE GOING TOUGH

Paddy Power has cut its full-year earnings forecast because of poor sporting results and tougher trading conditions in Ireland and the UK. The results are the first indication that bookmakers may not be immune to the current economic slowdown. Shares in the company fell six per cent to 15.15 euros, while shares in the group's counterparts, William Hill (WMH.L) and Ladbrokes (LAD.L) also fell, closing down four percent and three per cent respectively. Paddy Power said that it expects to make an operating profit of 60 million pounds for the year compared to previous guidance of 82 million euros.

ASSETS RISE NINE PER CENT AT FUND MANAGER

Hargreaves Lansdown (HRGV.L) has announced a nine per cent increase in assets under administration in the year to June, despite the recent falls in global markets. Chief executive Peter Hargreaves said that the result was "nothing less then remarkable" given the impact of the credit crunch. However, he cautioned against excessive optimism for the coming year, warning that "people are unlikely to invest when they believe stocks will decline in value". The group reported that its pre-tax profits rose 24.2 million pounds to 60.9 million pounds, and promised a special dividend to shareholders.

SERCO TARGETS US WITH AGREED SI BID

Serco (SRP.L) has said that it is aiming to boost its US business via its largest acquisition to date, when it offers 230 million pounds for SI International. The Nasdaq-listed company has agreed a takeover at 32 dollars per share, 40 per cent above its closing price on Tuesday. Serco's chief executive Christopher Hyman has said that the deal will allow the UK company to exceed sales revenues of one billion dollars and will also allow it to compete for larger contracts in the US.

Prepared for Reuters by Durrants