PRESS DIGEST - British business - July 11

The Times

YELL CHIEFS FACE INVESTOR REVOLT OVER BIG BONUSES

Investors in Yell (YELL.L), owner of the Yellow Pages, revolted on Thursday over bonus payments to senior management and issued calls for its chief executive and chief operating officer to resign, it has emerged. Senior executives have been awarded bonuses equivalent to 110 percent of their salaries even though the group's share price has tumbled 87 percent in the last year. Concern over generous bonuses was signalled by an "amber-top alert" issued by the Association of British Insurers, whose members control about 20 percent of the stock market. The shareholder organisation PIRC also voiced its opposition.

PRIME MINISTER TO SUPPORT AIRBUS IN FRESH BID FOR U.S. AIR FORCE TANKERS

Prime Minister Gordon Brown is expected to weigh in on the side of Airbus's (EAD.PA) 11,000 British workers in talks with the White House to try and influence the re-tendering of an 18 billion pound Pentagon contract. The Pentagon is seeking fresh bids for the contract to supply mid-air refuelling tankers -- the wings for which would be made at Airbus's factory in Broughton, north Wales. A spokesman for Brown said: "He will support the Airbus bid in whatever way he can." Defence analysts believe political pressure in the United States could see the Pentagon awarding the contract to an American company.

RBS HOPES DASHED AS ZURICH PULLS OUT OF AUCTION

Royal Bank of Scotland's (RBS.L) plans to beef up its balance sheet suffered a setback on Thursday as Zurich Financial (ZURN.VX), the Swiss insurer with extensive UK operations, withdrew from the auction for its insurance arm. The division includes the best-selling Direct Line and Churchill brands and RBS is hoping to raise as much as seven billion pounds from the sale. Zurich said it had decided to pull out following a "detailed review".

The Daily Telegraph

ASHLEY ATTACKS BLACKS MANAGEMENT

Mike Ashley, founder of Sports Direct (SPD.L), has launched a stinging attack on the management of Blacks Leisure (BSLA.L) -- the rival retailer in which he has a 29.4 percent holding. Ashley attacked the group's strategy and dismissed suggestions he was backing the newly appointed chief executive Neil Gillis, who said in an interview earlier this year that he had the "support" of Ashley.

HAYS HEIGHTENS JOB MARKET FEARS

Hays (HAYS.L), the UK's biggest recruitment firm, has added to fears about the impact of the economic slowdown on the job market after it revealed that its UK permanent position business failed to grow in the last quarter for the first time in five years. Global demand for temporary placements had grown faster than permanent positions in the three months to June 30, Hays said. A 20 percent growth in net fees was driven by 35 percent growth in its international business.

PHOTO-ME POSTS NEGATIVE RESULTS

Photo-Me International (PHTM.L) was 21.7 million pounds in the red at the full year after writing down the value of its digital photo booths and taking a 4.3 million pound hit related to the failed sale of the division. "It gives me no pleasure to announce such deeply unsatisfactory results," said Hugo Swire, who took over as chairman earlier this year after a series of boardroom bust-ups. The company's shares, which over the past 12 months have shed 84 percent of their value, fell a further 0.75 pence to 11.75 pence.

The Independent

SHORE CAPITAL BUYS EXECUTIVE JET DESPITE 29 PERCENT DIVE IN PROFITS