PRESS DIGEST - British business press - July 14

The Times

VIRGIN ATLANTIC CHIEF ADMITS HE KNEW OF CONSPIRACY

The chief executive of airline Virgin Atlantic, Steven Ridgway, has confessed to being aware of price-fixing on fuel surcharges arranged between Virgin and its rival BA(BAY.L) between July 2004 and April 2006. Three former BA executives and one current director are being tried for price-fixing offences. Virgin executives have been made exempt from prosecution after it went to the authorities with an admission of its part in the affair. Ridgway said while he played no part in price-fixing discussions, he regretted his laxity in stopping them.

CENTRICA LIFTS VENTURE STAKE AS INVESTORS SNUB ITS OFFER

Centrica(CNA.L) has responded to the rejection of its takeover offer for Venture Productions(VPC.L) by raising its stake in the company from 29 percent to 29.9 percent. The owner of British Gas(BG.L) took this action after other large investors in Venture, holding a combined stake in the business of 13 percent, agreed with the company's board the 845 pence-per-share bid was inadequate. The investors have urged other shareholders to consider the long-term value of their investment, but Centrica requires only 21 percent of acceptances for the bid to become binding.

FOUR SEASONS DELAY

The sale of Four Seasons, the UK's largest operator of care homes, has been postponed after one of its lenders, Credit Suisse(CSGN.VX), became the last of the major creditors to agree a debt-for-equity rescue deal with the ailing company. A small number of junior creditors are still not in favour of the plans, but the management of Four Seasons believes they can be won over, which would avert the need for a sale of the chain.

TEMPUS

Dunelm(DNLM.L) (Hold)

LMS Capital (Buy)

Low & Bonar (Buy)

The Daily Telegraph

RESOLUTION WEIGHS UP NEXT MOVE

Clive Cowdery's Resolution vehicle may consider restructuring its bid for Friends Provident(FP.L) after seeing an initial all-share approach rejected by the insurer on Monday. Based on current share prices, the offer would be worth about 1.64 billion pounds compared with Friends Provident's 1.59 billion pound market capitalisation. Friends Provident said the offer was "not wholly adequate" and made clear its concern over Resolution's management structure and dividend policy.

BROWN PRESSED OVER ROLE IN LLOYDS MERGER

Lloyds Action Now, a group of Lloyds(LLOY.L) shareholders, are demanding the government reveal details of discussions between Prime Minister Gordon Brown and Sir Victor Blank, chairman of Lloyds TSB, prior to the merger of Lloyds and HBOS. LAN plans to take legal action against the bank's directors over the merger and has made the demand under the Freedom of Information Act to establish whether Mr Brown and Lord Mandelson, the Business Secretary, knew of the magnitude of HBOS's debts before the merger.