PRESS DIGEST - British business - Sept 18

The Times

LLOYDS TAKES HARDER LINE ON BUY-TO-LETS

Lloyds Banking Group (LLOY.L) is to take a harder line on buy-to-let lending amid concern that the state-backed bank is overexposed to the rental sector. Changes set to apply from the close of business next Friday include a reduction in the number of buy-to-let properties an individual borrower can hold, from nine to three. The maximum amount an individual can borrow will also be reduced, from three million to two million pounds. A Lloyds spokesman said the changes will not affect the majority of customers, as nine out of ten of its buy-to-let borrowers have less than three properties with the group.

UNILEVER DREAMS OF AN ICE CREAM THAT KEEPS YOU YOUNG

Consumer products giant Unilever (ULVR.L) has partnered with California-based Ampere Life Science to establish a project aimed at introducing anti-ageing properties to some of its products. The focus will be on products that contain antioxidants, which are believed to play a role in preventing the development of disease. The terms of the five year deal have not been revealed but it is understood that Unilever, whose brands include Ben & Jerry's ice cream and Flora spread as well as Lynx deodorant, will have the exclusive rights to any inventions arising from the project.

ODDS SHORTEN ON BETFAIR REACHING FINISH LINE

Betfair as appointed advisers from Barclays Capital and Numis to assist the betting exchange operator to complete a 1.5 billion pound initial public offering, which will help strengthen the group's credibility as it expands into deregulating markets. The latest development comes after Betfair has been involved in a stop-start listing, which began with the group's original intention to list in June, only to once again stall on plans last week. It is expected that the move towards a market listing will enable shareholders with the means to trade their shares in the firm, which is debt-free and has no pressing need for additional funds, to help with expansion. However, one analyst warned institutions may dismiss Betfair "without looking at the core fundamentals".

NEED TO KNOW: DOMINO PRINTING

Domino Printing (DOPR.L), the supplier of industrial inkjet and laser printing equipment, said it was trading ahead of expectations on Friday, following a 20 percent increase in year-on-year revenue over the last four months. The Cambridge-based firm said it remained cautious about the outlook in Western Europe and the United States.

NEED TO KNOW: COSALT

Marine safety and leisure firm Cosalt (CSLT.L) has reported a fall in revenues by three million pounds to 32.5 million pounds between the period of May and August. The Grimsby-based firm, which supplies safety equipment for the offshore oil and gas and marine industries, said cautiousness among some of its customers had affected revenues. But in an upbeat note, Cosalt said activity in specific areas of the North Sea had experienced an increase.

NEED TO KNOW: SERCO

Business services company Serco (SRP.L) has confirmed that it has successfully secured a 300 million pound contract renewal deal to support the Royal Australian Navy. The deal was negotiated by the London-listed firm's DMS Maritime joint venture with P&O Maritime Services and the Royal Australian Navy.

TEMPUS

Next (NXT.L) (buy)

Tesco (TSCO.L) (buy)

The Daily Telegraph

DUNSTONE'S 35 MILLION POUND SHARE WINDFALL

Charles Dunstone has sold his ten percent stake in Carphone Warehouse (CPW.L) for 35 million pounds. The co-founder of the mobile phone retailer sold 15 million shares at 236 pence to finance a "combination of personal requirements". The sale, the largest reduction in his shareholding since the company listed in 2000, leaves him with a 29.1 percent stake.

FUTURE OF VAUXHALL VAN PLANT LOOKS MORE SECURE AFTER GM/RENAULT ACCORD

The future of Vauxhall's van plant in Luton moved a step closer to being secured after General Motors Europe and Renault (RENA.PA) agreed to continue their joint venture. However, the motor manufacturers said many aspects still needed to be clarified. A spokesman for Vauxhall said the plant's future had yet to be secured and was the subject of further negotiations. The plant employs 1,000 people and the joint venture is known as IBC ventures. The contract between Renault and Opel/Vauxhall expires in 2013.

XCHANGING HIRES HIGH-PROFILE DIRECTOR

Xchanging (XCH.L), the outsourcing group, has hired Ken Lever as a director of finance following rumours of accounting deficiencies. The rumours, which the company addressed as "baseless", sent shares in the company down 40 percent for the month to August 25. Lever will join Xchanging on October 5 from Swiss technology group Numonyx and will replace Richard Houghton, formerly chief financial officer, following his announcement in July that he intends to step down. Shares in Xchanging finished three pence up at 132.1 pence.

SHAREWATCH

Debenhams (DEB.L) (buy)

Booker (BOK.L) (buy)

Cranswick (CWK.L) (buy)

Biocompatibles BII.L (buy)

The Independent

DEAL SIGNALS SHARE BOOST FOR INVENSYS

Shares in the engineering and technology firm Invensys (ISYS.L) closed three percent higher on Friday after a deal to supply its control and signalling system across China's rail network was announced. The deal with China South Locomotive & Rolling Stock Corporation gives the state backed company the right to make and supply Invensys's Westrace system. The CSR contract also includes exclusive supply of signalling in a series of agreed projects in India, Southeast Asia and the Middle East. Invensys shares closed at 285.8 pence.

The Guardian

KOREANS CLOSE IN ON DANA WITH SHARE SPREE

Korea National Oil Corporation has almost guaranteed the success of its 1.7 billion pound offer for Dana Petroleum DNX.L by purchasing 29.5 percent of the energy explorer's stock. On Friday, KNOC spent 490 million pounds buying the shares after a "price sensitive" restriction was lifted. Merrill Lynch joined in the frenzy and bought 27.3 million shares at eighteen pounds a share. Tom Cross, Dana's chief executive, quoted an independent report which suggested that the shares were worth as much as 24.65 pounds, which was dismissed by the Koreans. Shareholders have been approached directly and KNOC has received letters of intent from around 50 percent. Investors have until September 23 to decide.

Prepared for Reuters by Durrants