PRESS DIGEST - Financial Times - June 23

The Financial Times

SLOWDOWN IN GROWTH OF MORTGAGE ARREARS

New figures from the Financial Services Authority have revealed the number of mortgages falling into arrears in the first three months of 2009 declined by 12 percent from the previous quarter to just under 60,000. The findings, published on Monday, come after the Bank of England has slashed interest rates to 0.5 percent amid increasing pressure on lenders to be lenient on struggling home owners. Repossessions increased by 13 percent to more than 14,800 in the same period, up from 13,100 in the previous quarter.

EMPLOYERS PRAISED FOR SAVING JOBS

Two-thirds of British employers are altering work arrangements in order to keep staff, according to a survey of 700 largely private sector employers with three million employees conducted by the CBI business group and Harvey Nash, a recruitment consultancy. An unprecedented collaboration between managers and staff has seen the introduction of more flexible working hours, extended shutdowns, additional holidays and cuts in paid overtime. The employers' organisation trimmed its forecast for peak unemployment from 3.3 million to three million by next spring.

CONCERN RISES OVER DELAY TO RED TAPE REFORM

The two committees announced by Lord Mandelson, the business secretary, on April 2 to vet red tape have yet to take effect, the Department for Business, Innovation and Skills has said. The delay has exacerbated business concerns that Whitehall has downgraded its efforts to cut the regulatory burden on companies. The first new watchdog, a sub-committee of the Prime Minister's National Economic Council, has not yet agreed a date for its first meeting, while proposals for a new independent "regulatory policy committee" are even further delayed.

TRANSATLANTIC UPGRADE FOR BA

British Airways BAY.L said on Monday it would begin an all-business class London to New York service on September 29. The carrier said there will be daily flights except Saturday, increasing to two-a-day from mid-October. The cost for a fully flexible business ticket will start from 5,625 pounds. A specially configured Airbus A318 with 32 seats will have to touch down for refuelling at Shannon in Ireland en route. The company's announcement came as Virgin Atlantic, its main competitor, celebrated its 25th anniversary.

ASSET FALL AT BRAMDEAN FUND

Shares in Bramdean Alternatives BRAL.L slipped 0.5 pence on Monday to 54.50 pence after the listed fund of alternative funds suffered its worst monthly drop in net asset value in sterling terms since its inception in 2007. The group, managed by Nicola Horlick's Bramdean Asset Management, posted a 7.7 percent drop in net asset value to 81.35 pence in May, hit by the currency movement in its dollar-dominated portfolio of investments. The results came ahead of a meeting on Monday with the new board of Bramdean Alternatives which was appointed last Friday. The new board, headed by chairman Jonathan Carr, is examining the fund's investments ahead of a potential corporate restructuring.

IDS BOOSTED BY "REMARKABLE" VITAMIN D MARKET

Immunodiagnostic Systems (IDH.L) reported a 27 percent increase to 4.8 million pounds in pre-tax profits for the full-year to March 31, boosted by the growing concern over vitamin D deficiency. Revenues jumped 51 percent to 24.9 million pounds while earnings per share increased 21 percent to 16.166 pence. The diagnostic kits maker increased its dividend by 10 percent and launched a new automatic diagnostic device. Chief executive Roger Duggan described the vitamin D market as "remarkable" and said: "The demand for vitamin D testing in the U.S. rose by 80 percent to 90 percent last year. In France, the market tripled over the past seven quarters."

THAMES POISED FOR ACTION IF OFWAT PLAN DISAPPOINTS

Thames Water THWEF.PK is poised to appeal to the Competition Committee to seek better terms from Ofwat if the UK water regulator's review of water bills comes in too low. The privatised water company says it may not be in position to finance its 5.5 billion capital spending if Ofwat estimates its cost of capital at less than 5.25 percent. Most analysts expect the regulator's figure, due in July, to be around 4.85 percent, in line with lower estimates from Britain's other privatised water companies. Chief financial officer Mark Braithwaite said: "Ofwat has a duty to ensure we can finance our functions. We have to be confident that our allowance lets us finance our core functions and capital programme. Ultimately we have the right to go to the Competition Commission."

FRESNILLO ABANDONS HOSTILE BID FOR CANADA'S MAG SILVER

London-listed Fresnillo (FRES.L) announced on Monday it had abandoned its 109 million pounds hostile takeover bid for MAG Silver (MAG.TO). The Mexican company, which is the world's biggest primary silver producer, said its decision came after it noted excessive delays in an independent valuation of the Canadian group. Shares in Fresnillo, which owns 20 percent of MAG, closed down 41.50 pence at 525 pence. The company's decision to drop the bid is seen as an impediment for its strategy of consolidating mining in Mexico by acquiring smaller groups.

APPLE AND INTEL BUY IMAGINATION STAKES

U.S. technology giants Intel (INTC.O) and Apple (AAPL.O) have bought stakes in Imagination Technologies (IMG.L), a Hertfordshire-based semiconductor designer worth 240 million pounds, in a bid to safeguard the future of their products. Last week, Intel's venture capital arm bought 25 million shares worth 20 million pounds to take its holding to just under 14 percent. The purchase marked the second stake-raising in seven months, with the first taking place in December just one day after Apple acquired a 3.6 percent stake. Intel said it had no intention of launching a bid but reserved the right if a rival offer emerged.

PAMPLONA AND BRIT CIRCLE INSURER CHAUCER

The board of Chaucer CHU.L announced on Monday it had entered talks with a number of major shareholders, including BlackRock and Scottish Widows, regarding an offer from Brit Insurance which values the group at about 40 pence per share, or about 220 million pounds which is at the low end of analyst estimates. Meanwhile, Pamplona Capital Management, a London-based private equity group backed by Russia's Alfa Bank, said it had acquired 50.8 million shares in the group, 9.26 percent of the issued share capital, at 44 pence each and announced its intention to take its stake to more than 10 percent.

Prepared for Reuters by Durrants