PRESS DIGEST - Financial Times - June 19

Saturday 19 June 2010

Financial Times

M&S UNLIKELY TO NAME NEXT CHAIRMAN BEFORE JULY AGM

Marks and Spencer (MKS.L) is unlikely to name its replacement for Sir Stuart Rose as chairman by its target date of July's general meeting. People familiar with the situation said it was "doubtful" whether the board will be in a position to agree upon the final choice within the next month. However, a shortlist has already been drawn up. The retailer, which this year welcomed Marc Bolland as its new chief executive, is now understood to be aiming to have its choice of chairman finalised by September.

LUMINAR CLOSE TO APPOINTING DELOITTE TO RESTRUCTURE DEBT

Nightclub operator Luminar LMR.L is considering strategic options for a restructuring of its debts. People close to the situation said the group, which owns Liquid and Oceana clubs, is close to appointing Deloitte to look at measures that include a potential resetting of covenants. Luminar could also sell property assets in a portfolio that holds 88 late-night venues. To date, the company has not breached any covenants and maintains a good relationship with its bank lenders. Another person close to Luminar said its debt problems were "benign".

QATARIS TO TARGET OLYMPIC PROPERTY

The managing director of Qatari Diar, which controls many of Qatari's real estate investments, has unveiled an unexpected focus to take part in the development behind the 2012 Olympic Games in London. Ghanim bin Saad al-Saad said: "There will be a lot of investment needed in real estate for the Olympics." The oil rich emirate has been increasing its involvement in London property. However, the move marks a change in strategy, which has so far targeted mainly prestigious landmark buildings in the West End and City of London.

BALDERTON CAPITAL PLUGS INTO TEENAGERS' ATTENTION SPANS

London's Balderton Capital has hired a group of teenagers to advise the venture capital firm - one of the largest in Europe - to advise it on the latest technology trends. The group, which manages 1.3 billion pounds ($1.93 billion) in committed funds, has invested in Bebo, Betfair and Codemasters. It invited 11 15-year-olds to an hour-long private trip on the London Eye last month for an inaugural meeting. They plan to meet every two or three months and will continue to chat and swap ideas. The venture capital firm is aiming to understand how modern teenagers will spend their time and money as future adults.

C&W DISCLOSES PAY REWARDS

Cable & Wireless Worldwide CW.L has disclosed that chief executive Jim Marsh received seven million pounds from a long-term incentive plan in 2009, and then picked up a further two million pounds from the same scheme this year. Details of Marsh's controversial pay plan emerged in the telecoms group's first annual report since being demerged from the former Cable & Wireless in March. The document also shows chairman John Pluthero received 1.9 million pounds from the incentive plan in 2010. This is down from the previously announced 8.3 million pounds that he received in 2009.

INNOVISION FOLLOWS RIVALS TO US AS IT IS SWALLOWED UP

Innovision Research & Technology INN.L, the Aim-listed radio frequency identification specialist, is being acquired by US semiconductor group Broadcom (BRCM.OQ) for 32 million pounds cash. The deal signals the latest technology minnow to get through the risk phase to succumb to an offer from a US predator. It comes just two days after Teledyne, the US electronic components group, announced a 28 million pound cash offer for Intelek ITK.L, the satellite and microwave communications group.

WINTON OPENS NEW HEDGE FUND TO RETAIL INVESTORS

Winton Capital, one of the largest hedge fund managers in London, is to launch a fund on June 30 that will be open to retail investors. Unlike a traditional hedge fund, the so-called UCITS fund can be invested in by non-professionals. It is the latest in a series of similar moves from several of London's best-known hedge funds, which are keen to diversify their investor bases. The UCITS fund will be open to subscriptions on Monday.

NEW GOOGLE TOOLS RIDE TO ESTATE AGENTS' RESCUE

Google's (GOOG.O) entry into the UK property market is being welcomed by estate agents, which are keen to see a fall in the prices charged by internet property search portals, such as Rightmove (RMV.L) and Primelocation. Grenville Turner, chief executive of Countrywide CWD.L, the largest estate group in the UK, believes the move will force portals to "innovate" and keep the market competitive. Countrywide is one of several estate agents joining Google to offer house-hunting tools on its internet map service. Thousands of homes for sale or rent are now detailed on Google maps.

CUTS STUDY FINDS 2.3 MILLION OUTSOURCED JOBS AT RISK

An independent survey by Oxford Economics, the accountancy firm, has revealed at least 2.3 million private sector jobs are at risk from looming public spending cuts. The study warns of job risks in sectors ranging from construction to health, where outsourced providers supply government services but whose employees do not count on the government's payroll. It shows the public sector purchased 80 billion pounds of services from the private and voluntary sectors in 2007-08. This is in addition to the 140 billion pounds it spends on the purchase of goods, from paperclips to tanks.

BBC AND BT CAN EXPECT A BUMPY RIDE

Jeremy Hunt, the culture secretary, has indicated that broadcaster BBC and BT (BT.L), the fixed-line phone group, face a stricter competitive and regulatory climate under a Con-Lib government, compared to the former Labour administration. Both groups faced strong criticism from Hunt while he was in opposition. Attacks centred on the BBC's pay and perks for top managers, and on what he described as BT's inadequate plans for a superfast broadband network. ($1=.6743 Pound)