PRESS DIGEST - British business - June 8

The Sunday Times

BEAN WINS NO2 POST AT BANK TO REPLACE LOMAX

The Bank of England's chief economist, Charlie Bean, will get the job of Bank deputy governor to replace Rachael Lomax. The move follows a battle with the Treasury over whether the job should have been given to a financial-stability expert following the Northern Rock debacle. Bean will be confirmed in the job within the next two weeks, and Alistair Darling could formally announce the move when he addresses the annual Mansion House dinner in the City on 18 June.

QATARIS PAY OFF TAYLOR AFTER SAINSBURY DEBACLE

Paul Taylor, the Qatari government's British-based investment partner, who led its abortive 10.5 billion pound takeover bid for J Sainsbury(SBRY.L), has been officially dumped by his Arab paymasters. Taylor was dismissed last week, and the Qatar Investment Authority is buying out his 50 per cent stake in its Delta fund for an undisclosed sum. Consequently, the QIA will take ownership of all investments made since Three Delta's creation. It is understood that both sides have agreed a joint statement confirming the divorce.

AILING NEXT CUTS BONUS TARGETS

Next(NXT.L), the high-street retailer, has become the latest FTSE 100 company to scale back targets for its executive-incentive plan. Next has priced its new scheme to pay out at a far lower level than the current deal after its share price more than halved since last summer. Last week, Marks & Spencer (MKS.L) cut the earnings target for chief executive Stuart Rose amid rising concern that big companies are making life easier for managers. Next's new plan is expected to pay out at between 16 pounds to 20 pounds, which is much less than an existing scheme that will see Next executives miss out on a 13 million pound windfall next month.

The Sunday Telegraph

PHARMACY GIANT GIVES UK THE BOOT

Alliance Boots [AB.UL] has switched its headquarters from Britain to Switzerland in a further blow to Britain's status as an international centre for business. Its executive deputy chairman, Stefano Pessina, said the relocation occurred largely because of Switzerland's status as a hub for European healthcare companies. Mr Pessina said: "The evolution I have seen over the past year is not the direction that you'd expect from a country that is business friendly. It was fantastic and now I have the feeling they are going in the opposite direction."

NETWORK RAIL MAKES TRACKS TO FIND REPLACEMENT CHAIRMAN

Network Rail has begun its search to find replacements for its chairman Sir Ian McAllister and at least two non-executive directors. The company has asked Egon Zehnder, its retained headhunter, to test the market for a possible successor to Sir Ian, though he has no immediate plans to step down. Sir Ian has chaired the Government-backed Network Rail since it replaced Railtrack in 2002, and was knighted in the New Year Honours for "services to transport" just as the company was handed a record 14 million pound fine from its regulator.

FORMER TORY LEADER TAKES THE REINS AT RACECOURSE OWNER

Michael Howard is to become chairman of Northern Racing, the racecourse company that is controlled by the Reuben Brothers. The former Conservative Party leader will lead the board following the 90 million pound acquisition of Northern Racing by the property magnates David and Simon Reuben in April last year. The company owns nine racecourses across the country and accounts for 14 per cent of the fixtures in the UK through its more than 200 race meetings.

The Observer

BRITISH ENERGY TO AGREE TEN BILLION POUND EDF TAKEOVER