PRESS DIGEST - British business - May 31

The Times

EASYJET BUILDS CLASS ACTION AS VOLCANO'S FALLOUT SPREADS

EasyJet (EZJ.L) is looking at bringing a class action lawsuit against European air regulators after the decision to close airspace because of volcanic ash cost the airline between 50 million and 75 million pounds. Andy Harrison, chief executive of the Luton-based budget airline, said he was in discussions with other airlines about how to compensate for the five-day closure due to the volcanic ash cloud that was emanating from Iceland. Harron said: "That was a natural catastrophe and there is no reason why the consequences must be borne by the airlines alone, particularly when it became apparent afterwards that a closure of that size was unnecessary."

GIANT LEAVES TEESSIDE, WITH ANOTHER IN THE PIPELINE

IHC Engineering Business, part of Dutch group IHC Merwede which supplies systems and services to the oil and gas industry, has completed the construction of one of the world's largest pipe laying machines. The machine will be used to lay deep-sea pipes for BP, ExxonMobil and Shell among others. On Sunday, the device was loaded on to a South Korea-bound transporter ship at its Tees Estuary home. When it reaches its destination, it will be attached to a specially built ship. The company is about to begin work on a second machine for another client. Tony Bailey, IHC EB's managing director, said: "This shows that the North East still has the skills and expertise to deliver complex manufacturing projects."

NEED TO KNOW: BRITISH AIRWAYS

British Airways BAY.L has offered to give in to its cabin crew's demands that travel perks be reinstated, but only if the Trade Union Congress guarantees that all other changes are honoured. The long-running dispute with cabin crew continued on Sunday as another five-day strike began at midnight. The airline reassured passengers that all services from Gatwick and London City airports would remain unaffected, while 70 percent of its Heathrow long-haul schedule would depart as normal -- an improvement on the 60 percent operating during the last strike.

The Daily Telegraph

SAINSBURY'S TRIES TO KEEP ONE STEP AHEAD OF BRITISH WEATHER

J Sainsbury (SBRY.L), the supermarket, has launched a multi-million pound technology investment aimed at limiting the amount of unpurchased food by 15 percent during periods of unexpected weather. Sainsbury's supply chain director, Tim Goalen, said: "This new system allows us to react to any changes in buying pattern on the same day rather than overnight." The supply chain technology will allow the company to monitor food being bought in real time, meaning it will know which food to send to individual stores each day.

OCADO LINES UP FIVE BANKS FOR JULY FLOAT

Ocado, the online company that delivers groceries for supermarket Waitrose, has appointed Barclays, Lloyds Banking Group, HSBC, Numi and Jefferies to work alongside Goldman Sachs, UBS and JP Morgan Cazenove as it prepares for its planned flotation. The company is aiming to raise around 150 million pounds through the listing which would give it an estimated market capitalisation of about one billion pounds. If successful, the listing will cancel the company's debt and see the group's three founders scoop 180 million pounds.

NORTHERN FOODS HAS BITE TAKEN FROM PROFITS

Northern Foods NFDS.L, the British food manufacturer, will report its full-year results on Tuesday. The company, led by chief executive Stefan Barden, said in March that like-for-like sales increased by one percent over the year but dipped 1.8 percent in the final quarter. It is expected that the company will report a profit of around 36.5 million pounds for the year to April 3, compared to about 39 million pounds last year. Revenue is expected to fall to 970 million pounds compared with 975 million pounds in the previous year.

KARREN BRADY TO JOIN TOPSHOP BOARD

Karren Brady, the vice-chairman of West Ham United football club, is expected to step down from the board of maternity and babywear retailer Mothercare (MTC.L) after being appointed as a non-executive director at Arcadia, Sir Philip Green's high street fashion empire and the owner of brands such as Topshop and Dorothy Perkins. Brady will be the first female board director Green has recruited and will be responsible for helping chief executive Ian Grabiner develop Arcadia's strategy.

The Independent

QATARI WATCHDOG TELLS VODAFONE TO FILE COMPLAINT

Vodafone Qatar, the Qatari division of London-listed telecoms giant Vodafone (VOD.L), has been told by Qatar's telecoms regulator to file a complaint with it should it have any concerns about the entry of Virgin Mobile into the Qatari market. The regulator's move follows a threat of legal action against Virgin Mobile by Vodafone Qatar, which believes a brand licensing deal agreed between its rival and Qatar Telecommunications to launch Virgin Mobile in the Gulf state runs counter to the terms of its own 1.5 billion pound licence to operate in Qatar.

NATIONWIDE MAY REVIEW PENSIONS

Nationwide, the building society, has refused to deny reports it plans to cut final salary pension benefits to cut costs. Latest figures show the society's pension deficit increased from 40 million pounds to 331 million pounds. Pension Capital Strategies said the combined FTSE 100 funding deficit had dropped from 64 billion pounds in May 2009 to the current figure of 58 billion pounds. Private-sector schemes showed a 185 billion pound funding gap. Nationwide is likely to cut jobs and close branches as it contends with tight margins and intense competition.

STANCHART HAILS INDIAN SHARE SALE

Standard Chartered (STAN.L), the London-listed bank that makes 75 percent of its profit in Asia, raised 530 million dollars on Sunday when it offered a share of its business to the Indian public. Investors bought 240 million Indian Depositary Receipts at 104 rupees each, in the first public offering of its kind. The company, which was not badly hit by the global credit crunch, plans to strengthen its brand and presence in India as it sees this particular emerging market as being one of its most important.

The Guardian

CONGRESS RAISES SAFETY CONCERNS OVER RIG'S MARSHALL ISLANDS FLAG

It has emerged that the Marshall Islands in the north Pacific are technically responsible for checking safety standards on BP's (BP.L) Deepwater Horizon oil rig. It was owned by Transocean but was under lease to BP when it exploded and sank. Questions have been asked in the U.S. Congress why Transocean rigs have been registered in a country 7,000 miles from the United States with a gross domestic product of 133 million dollars, 700 times less than BP's market capitalisation. It has been suggested that safety checks on foreign-registered rigs are less stringent than those of U.S.-registered drilling units.

Prepared for Reuters by Durrants