PRESS DIGEST - Financial Times - Feb 1

Financial Times

PETROFAC TO SPIN OFF NORTH SEA ASSETS

Oil services provider Petrofac (PFC.L) is seeking to realise the value of its energy investments by spinning off its North Sea oil and gas assets. According to sources familiar with the situation, the FTSE 100 group's management has been holding senior level talks over options for its billion-dollar portfolio since last year. Its management has approached Goldman Sachs and JPMorgan Cazenove, its brokers, to consider options for the assets. The most likely course would be a demerger via a London stock market listing. However, no final decision has been made and any move would rely on market conditions.

CROZIER TO EARN UP TO 16 MILLION POUNDS IN FIVE YEARS AT ITV

The new chief executive of broadcaster ITV (ITV.L) could earn up to 16 million pounds over the next five years, which is less than predecessor Michael Grade received. Adam Crozier will be placed on a basic salary of roughly 800,000 pounds, with an additional 150 percent of that each year in short-term targets. The outgoing Royal Mail [GBPO.UL] chief executive looks set to receive a further five million pounds to six million pounds if ITV performs better than its peers. However, the details of his contract are still being finalised. The broadcaster's shares closed on Friday at 56.5 pence.

LOVERING TO UNITE WITH PERMIRA ON DFS BID

Veteran retail executive John Lovering has teamed up with Permira, the buy-out house, to prepare a bid for sofa chain DFS, which is being sold by its founder Lord Kirkham. Several other private groups, including Cinven and Advent International, have also been drawn to the auction for DFS, which is valued at roughly 500 million pounds. Any deal would result in a windfall for Kirkham, who is being advised by Goldman Sachs on a strategic review of DFS.

OLYMPIC APPEAL FOR JOHN LEWIS

Andy Street, managing director of John Lewis [JLP.UL], is set to reveal that the retail chain is to become the appointed store to the London Olympics. It is also likely John Lewis, the winner of this year's Christmas retail battle, will offer an Olympic shop at its new store in Stratford, which borders the Games site, and possibly at its flagship department store in Oxford Street. The Olympic link could add to its appeal and provide a further boost after record festive trading in spite of the recession.

BA EDGES CLOSER TO GLOBAL ALLIANCE WITH IBERIA AND AMERICAN AIRLINES

The planned alliance between British Airways BAY.L, American Airlines AMR.N and Iberia IBLA.MC has moved closer to securing regulatory approval, after the European Commission confirmed it had begun consulting with rival airlines. Competition officials are now consulting with airlines, such as Virgin Atlantic, about the concessions being offered by the three carriers to address potential anti-competitive implications of the tie-up. The confirmation from Europe's top anti-trust watchdog is a strong indication that talks between it and the three carriers have been productive in recent months.

PAYMENT CHANGE TO BOOST SOLAR POWER

The government will announce new payments on Monday for home energy generation, giving households and businesses far greater incentive to install renewable energy technology. However, some environmentalists say Energy Secretary Ed Miliband's scheme might not be enough to stimulate large-scale microgeneration. Makers of generation equipment, such as solar panels and wood-fired boilers, are hoping for a sales boost as households look forward to hundreds of pounds a year from energy firms.

PROJECT FUNDING WOES FUEL FEARS FOR ECONOMY

According to a global survey by the Economist Intelligence Unit, a lack of funds is the largest barrier to developing the key infrastructure that Britain and the rest of the industrialised world need to compete with China, India and other rising economies. Richard Threlfall, head of infrastructure at KPMG, which commissioned the survey, said "not enough is being invested in infrastructure to provide for our futures and boost our economies". The Treasury estimates that 200 billion pounds needs to be spent on low-carbon energy, transport, telecommunications, waste and energy infrastructure between now and 2015.

EXPORTS OFFER GLIMMER OF HOPE FOR SMES

According to figures published on Monday by the CBI, smaller manufacturers are seeing their first glimpse of an export-led recovery. Optimism regarding export prospects is at its highest level for 15 years, as overseas orders begin to stabilise following seven quarters of decline. However, the employers' body's quarterly survey also showed domestic orders are likely to remain depressed, with output expected to fall in the next three months.

PUBLIC SECTOR FEARS SKILLS DEFICIT

Research by recruiter Hays (HAYS.L) has exposed public sector managers' concern that gaps in their training will leave them lacking essential skills when spending cuts start to bite. More than 1,000 chief executives, managers and junior staff responded to the survey, across local and central government, the health service and social housing. The majority said they would have to turn to the private sector to solve their delivery and management problems. Only 16 percent of managers believed their employers had the organisational resources to tackle a reduced budget.

Prepared for Reuters by Durrants