PRESS DIGEST - British business -- June 7

The Times

CABLE AND WIRELESS SETS ITSELF UNTIL THE END OF THE MONTH TO...

Cable and Wireless(CW.L) has set itself a deadline of a month to get Thus THUS.L to the negotiating table. On Friday the Thus rejected an initial 165 pence-per-share offer from Cable and Wireless which said that it would either make a firm offer or withdraw by the evening of June 30. Thus made a statement saying that the approach had underestimated the stand-alone value of the company which it said had net assets of 461 million pounds or 252 pence per share. Shares in Thus rose two per cent on the news to 159.25 pence and closed at 158 pence.

LEWIS HAMILTON OVERTAKES TRAINS IN THE HORNBY MARSHALLING

For the first time since the 1930s, Hornby (HRN.L) will generate less than half of its sales from model trains this year. The toy group has seen a surge in sales after the launch of a Lewis Hamilton Formula One version of Scalextric last year. Annual results on Friday showed pre-tax profits rose to nine million pounds up 17 per cent in the year to March 31. Shareholders will receive a full year dividend of 8.5 pence per share, up five per cent.

RELIEF FOR UNDERWRITERS AS RBS RIGHTS ISSUE SUCCEEDS

Royal Bank of Scotland(RBS.L) is set to disclose that it has got its 12 billion pound rescue rights issue away. This will relieve fears that the shares would collapse if the underwriters were left with unsold stock. On Friday, it was understood that investors have taken up at least 90 per cent of their rights by the 11am deadline. The final size of the take up will not be known until Monday. However, its share price although down by 13.5 pence at 245.5 pence, is still above the 200 pence rights issue price.

The Daily Telegraph

FULLER'S WARNS OF EFFECTS AS CREDIT CRISIS HITS

Michael Turner, chairman of Fuller, Smith and Turner, has warned that the British consumer is under enormous pressure. He made the warning as Fuller's reported a four per cent rise in pre-tax profits to 23 million pounds in the year to the end of March. The company saw its share price drop 40 to 545 pence as it revealed revenues had risen two per cent to 181 million pounds. It said that it increased its final dividend by six per cent to 6.9 pence.

REUBEN BROTHERS PLAN TO SWOOP FOR SILVERJET

Property developers David and Simon Reuben are said to be thinking of a last minute bid for Silverjet, the business class-only airline which went into administration last week. The brothers are owed an estimated ten million pounds after investing in the airline in 2007. In total, Silverjet owes 40 million pounds to creditors, of which 17 million pounds is secured against three aircraft.

HAYWARD 'POSITIVE' AFTER TNK-BP MOSCOW MEETING

On Friday, Tony Hayward, chief executive of BP(BP.L) travelled to Moscow to meet rival shareholders in the TNK-BP joint venture. The parties sought to patch up their differences. Viktor Vekselberg, a major TNK-BP shareholder said that he expects the dispute over the venture's strategy to end soon. A source said the parties would meet again in three days.

The Independent

EASYJET OFFERS UPTO 20 PER CENT OFF TWO MILLION SEATS.