PRESS DIGEST - British business press - July 14

The Times

VIRGIN ATLANTIC CHIEF ADMITS HE KNEW OF CONSPIRACY

The chief executive of airline Virgin Atlantic, Steven Ridgway, has confessed to being aware of price-fixing on fuel surcharges arranged between Virgin and its rival BABAY.L between July 2004 and April 2006. Three former BA executives and one current director are being tried for price-fixing offences. Virgin executives have been made exempt from prosecution after it went to the authorities with an admission of its part in the affair. Ridgway said while he played no part in price-fixing discussions, he regretted his laxity in stopping them.

CENTRICA LIFTS VENTURE STAKE AS INVESTORS SNUB ITS OFFER

Centrica(CNA.L) has responded to the rejection of its takeover offer for Venture ProductionsVPC.L by raising its stake in the company from 29 percent to 29.9 percent. The owner of British Gas(BG.L) took this action after other large investors in Venture, holding a combined stake in the business of 13 percent, agreed with the company's board the 845 pence-per-share bid was inadequate. The investors have urged other shareholders to consider the long-term value of their investment, but Centrica requires only 21 percent of acceptances for the bid to become binding.

FOUR SEASONS DELAY

The sale of Four Seasons, the UK's largest operator of care homes, has been postponed after one of its lenders, Credit Suisse(CSGN.VX), became the last of the major creditors to agree a debt-for-equity rescue deal with the ailing company. A small number of junior creditors are still not in favour of the plans, but the management of Four Seasons believes they can be won over, which would avert the need for a sale of the chain.

TEMPUS

Dunelm(DNLM.L) (Hold)

LMS Capital (Buy)

Low & Bonar (Buy)

The Daily Telegraph

RESOLUTION WEIGHS UP NEXT MOVE

Clive Cowdery's Resolution vehicle may consider restructuring its bid for Friends ProvidentFP.L after seeing an initial all-share approach rejected by the insurer on Monday. Based on current share prices, the offer would be worth about 1.64 billion pounds compared with Friends Provident's 1.59 billion pound market capitalisation. Friends Provident said the offer was "not wholly adequate" and made clear its concern over Resolution's management structure and dividend policy.

BROWN PRESSED OVER ROLE IN LLOYDS MERGER

Lloyds Action Now, a group of Lloyds(LLOY.L) shareholders, are demanding the government reveal details of discussions between Prime Minister Gordon Brown and Sir Victor Blank, chairman of Lloyds TSB, prior to the merger of Lloyds and HBOS. LAN plans to take legal action against the bank's directors over the merger and has made the demand under the Freedom of Information Act to establish whether Mr Brown and Lord Mandelson, the Business Secretary, knew of the magnitude of HBOS's debts before the merger.

PONTIN'S PROFITS FROM RISE IN DEMAND FOR 'HI-DE-HI' HOLIDAYS

Pontin's has revealed a 25 per cent rise in bookings as holidaymakers turn to cheap breaks in the UK. Chief executive, Ian Smith, said people were leaving it late to book holidays as they wait to see if they have any money and also to see if the weather holds out. Pontin's has announced plans for a 50 million pound redevelopment of its six chalet parks across the UK. Butlins is also investing 20 million pounds in a new hotel in Bognor Regis after seeing a 15 per cent rise in bookings this year.

QUESTOR

Venture ProductionVPC.L [Hold]

Cranswick(CWK.L) [Buy]

The Independent

NEW LOOK BAGS FIVE BORDERS UK STORES

New Look has acquired five stores belonging to the struggling bookseller Borders UK. The fashion retailer will take over outlets at the Blanchardstown Centre in Dublin, Llantrisant, Anglesey, London Colney, Swindon and Oxford Street. The Oxford Street store, formerly the flagship venue for Borders UK, will become the second New Look on Oxford Street and one of the chain's largest stores with an area of 390,000 square feet.

VENTURE INVESTORS SHUN CENTRICA BID

Shareholders in the North Sea oil and gas group Venture ProductionVPC.L have backed the decision of their board to refuse a 1.3 billion pound offer from Centrica(CNA.L), labelling the bid "opportunistic". One of the company's biggest investors, the US investment group ArcLight Capital Partners, and one of its founders Larry Kinch expressed their opinion that the offer significantly underestimated the value of the business. "I believe Venture's shares have a value of at least 10 pounds", stated Mr. Kinch. Venture's share rose 5.5 percent to finish at 828.5 pence.

EMERALD ENERGY SPARKLES AT BID TALK

The trend towards consolidation in the exploration sector looks set to continue, with Emerald Energy the latest oil and gas company to receive a takeover offer. The bidder, who has not yet been identified, has been in preliminary talks with Emerald about a possible cash offer. Rumours of a 750 pence-per-share bid, which would value Emerald at 470 million pounds, boosted shares by 10 percent on Friday and a further 13 percent on Monday, raising them to 632 pence, the highest in a decade.

INVESTMENT COLUMN

Dunelm Group(DNLM.L) (Hold for now)

Cranswick(CWK.L) (Hold for now)

Huntsworth (Buy)

The Guardian

WALSH FACES PROTEST AFTER BA PAY DEAL

Willie Walsh, the chief executive of British AirwaysBAY.L is to face protests from unions representing baggage handlers, cabin staff and ground crew at the airline's AGM in London, over management plans to lay off thousands of staff. A deal with BA's 3,200 pilots who have agreed a salary cut and longer work hours, is a small victory for Walsh. The struggle to reduce the company's overheads, however, remains an uphill struggle.

RECOUPING 70 BILLION POUNDS PUMPED INTO BUSTED BANKS.

UK Financial Investments has warned the taxpayer is set to lose almost 11 billion pounds if the government decides to recoup the 70 billion pounds pumped into Royal Bank of Scotland(RBS.L) and Lloyds Banking Group(LLOY.L), and has urged for "professionalism and patience," in concern over current share values. John Kingman, UKFI's chief executive, said while the public "rightly expected" to get their money back, selling too early was not an option, as "this will not and cannot be a short term game."

DAILY TELEGRAPH PUBLISHER REPORTS 16 MILLION POUND PRE-TAX LOSS

Telegraph Media Group, the publisher of the Daily and Sunday Telegraph, has reported a pre-tax loss of 15.7 million pounds last year, after taking a 32.9 million pound charge from terminating joint printing ventures with Richard Desmond's Northern & Shell. Costs attributable to exceptional items totalled 47.1 million pounds last year, up from 24.2 million pounds in 2007. The majority of these items related to restructuring costs associated with the termination of TMG's printing joint ventures.

Prepared for Reuters by Durrants