PRESS DIGEST - British business - Nov 22

The Mail on Sunday

NEW ITV BOSS SET TO CHARGE FOR CHANNELS

The new chairman of ITV (ITV.L), Archie Norman, is likely to change ITV2, ITV3 and ITV4 to a subscription model shortly after he assumes the position in January. He is also expected to cut jobs in an attempt to save 155 million pounds. The broadcaster expects advertising revenue to drop by 12 percent this year. ITV1, which drew a 16.5 million audience to its X Factor show last week, is likely to remain free and Norman is expected to retain ITV Productions despite pressure from investors to sell the business.

BARCLAYS TRIES AGAIN TO SELL EQUITY ARM

Barclays (BARC.L) has restarted talks to sell its three billion pound private equity arm. The deal, which would inject much-needed capital into Barclays, could be completed as early as next year, with a possible sale to its management on the cards following negotiations held by Paul Goodson, head of BPE, with Barclays. A buyout by management would leave Barclays with about 40 percent of the business. The bank is in talks with a group of investors that provides 75 percent of the capital for the organisation.

BRANSON BIDS FOR CAMELOT

Virgin boss Sir Richard Branson has made a bid for a controlling stake in Camelot [LOTT.UL], the company that runs the National Lottery. Four out of five of Camelot's shareholders have put their shares, of an estimated 80 million pounds' worth each, up for sale. The fifth, Royal Mail [GBPO.UL], has said it does not want to sell but may be convinced to if the price is right. Branson is not acting through Virgin Group but as an individual in partnership with People's Postcode Lottery.

Sunday Times

RBS DUMPING TOXIC ASSETS ON IRELAND

Royal Bank of Scotland (RBS.L) is attempting to shift seven billion pounds of toxic loans into the Irish "bad bank". An application to join the country's National Asset Management Agency will be lodged through its Ulster Bank subsidiary in the coming weeks, which could spark a diplomatic row. There was an agreement between the Treasury and Ireland that no British bank would attempt to join the Irish insurance scheme, and vice versa, but under EU rules Ireland is legally obliged to consider RBS's application.

BUS GIANT INVESTORS WOO FORMER BOSS

Phil White has been approached by National Express (NEX.L) shareholders about returning to run the firm. White left National Express three years ago after expanding the company into Spain and bringing the Cosmen family on board. The Cosmens, who provide National Express's deputy chairman, Jorge Cosmen, and the bus and rail group's shareholders are in conflict over its proposed 360 million pound rights issue. A vote on the rights issue will be held in a matter of days, with the Spanish saying takeover approaches were not given proper consideration.

100 MILLION POUND DEAL FATTENS UP COMPASS FIGURES

The reporting of Compass's (CPG.L) full-year results this week will be boosted by the announcement of a 100 million contract with Lloyds Banking Group. Compass is expected to report a 35 percent increase in profits after securing a number of contracts recently. Compass already held a contract with Lloyds, while its U.S. competitor Aramark provided meals for HBOS. Following the merger of the two banks it was decided only one external caterer was needed and Compass secured the deal.

The Sunday Telegraph

KIDSTON SEEKS TO BAG INVESTOR

Cath Kidston is seeking a new majority owner for her eponymous clothing and homeware design company. The company, thought to be worth around 75 million pounds, is looking for fresh investment in order to finance a roll out of new stores across the Far East. Kidston said the new investor would buy out a two-third stake in the company currently held by a group of 40 shareholders. The company reported full-year earnings of 4.6 million pounds on revenues of 31.3 million pounds at March 31 2009.

EMI PUBLISHING IS ON A SONG

New figures posted on the website of entertainment group EMI show that the company's music publishing arm, EMI Music Publishing, experienced a 14.6 percent increase in sales during the year to the end of March. Group Revenue increased from 409 million pounds to 468 million pounds over the 12-month period which converted into earnings before interest, tax, amortisation of 135 million pounds compared with 113 million pounds in 2008.

NETWORK RAIL BOSS TAKES HUMBLE APPROACH TO GETTING BACK ON TRACK

Network Rail chairman, Rick Haythornthwaite, has said he would like to see the nationalised rail group serve "a leadership purpose in this industry". Speaking ahead of the publication of the group's results on Thursday, Haythornthwaite said the company had changed significantly since it took over from the discredited Railtrack in October 2002 and that he plans to add at least two new non-executives in the first-quarter of next year: "I'm shifting the balance of skills in the board to make it relevant to where we are going, not where we have been," he said.

The Independent on Sunday

M&S BOMBSHELL SEES BOLLAND PUSHED TO QUIT MORRISONS

The board of supermarket group Morrisons (MRW.L) is meeting this weekend to consider a way forward after it emerged on television this week that chief executive Marc Bolland has been offered the position of chief executive at rival Marks & Spencer (MKS.L). Morrisons is in the process of appointing head-hunters to find a new chief executive, with directors thought likely to overlook finance director Richard Pennycook. Bolland is expected to be asked to leave Morrisons in the near future.

BLACKS SHOPS CLOSE UNDER CVA

Landlords of the retailer Blacks BSLA.L are expected to grant "grudging" approval this week to plans for the company to enter a Company Voluntary Arrangement. At least 75 percent of landlords are expected to vote in favour of the deal, which will see Blacks agree to pay landlords six months-worth of rent on leases with up to ten years to run. FTSE-100 property firms Land Securities (LAND.L) and Hammerson (HMSO.L) are among those understood to be backing the deal. The CVA will lead to the closure of 89 stores.

"ROW OVER STRATEGY" AT REED

It is thought the resignation of Ian Smith from FTSE-100 media giant Reed Elsevier (REL.L) (ELSN.AS) two weeks ago, after just eight months as chief executive, was spurred by a dispute over "hundreds of millions of pounds". A source close to Smith said: "I was told that Ian put a proposal to the board in September to invest quite substantial amounts -- maybe hundreds of millions -- and it disagreed." Others believe the difference in strategy between Smith and chairman Anthony Hapgood was less pronounced, and that Smith's departure was due to his perceived inability to lead the company through a recession.

The Observer

CADBURY KEPT IN THE DARK AS RBS BACKED ITS RIVAL

Royal Bank of Scotland (RBS.L) delayed informing Cadbury CBRY.L, its long-standing client, about its decision to back Kraft's (KFT.N) takeover bid until the last moment. The state-controlled bank has caused criticism by backing the American company over a British one but more ire was provoked when RBS kept it a secret. Sources at RBS have said it would have been in breach of a confidentiality agreement had it revealed the information sooner but MPs Khalid Mahmood and Vince Cable have both voiced displeasure, insisting the bank should be supporting British businesses.

LLOYDS TO REVEAL TERMS OF 13.5 BILLION POUND FUNDRAISING

Lloyds Banking Group (LLOY.L) is expected to announce the terms of its 13.5 billion pound cash call on investors this week. Lloyds needs an additional 21 billion pounds to avoid entering the government's asset protection scheme. Seven billion pounds is expected to come from bond investors and the government is expected to buy 5.7 billon pounds worth of the estimated 40 billion new shares, which could be priced around 33p each.

Prepared for Reuters by Durrants