PRESS DIGEST - British business press - Aug 14

The Times

BA CLOSES ON US LINK

On Thursday, British Airways (BAY.L) is due to announce that it is seeking regulatory approval to form an alliance with American Airlines.

The statement will detail what is effectively a merger of transatlantic operations, and is expected to be made before the New York Stock Exchange opens. BA-AA will seek anti-trust immunity to collaborate on pricing, marketing and revenue sharing.

UTILITIES

The water regulator Ofwat has fined Tendring Hundred Water 42,000 pounds for supplying inaccurate information, which led the company that delivers water to the Tendring peninsula, in Essex, to overcharge customers in 2006. Tendring Hundred is part of the Veolia Environment Group (VIE.PA).

SUPPORT SERVICES

Interserve (IRV.L) announced that a strong market in the Middle East left it well placed for further growth. The FTSE 250 business support organisation reported a 19.5 per cent hike in first-half profits to reach 33.7 million pounds.

The company also said that it had won a 44 million pound contract to build and operate two leisure centres for Leeds City Council.

The Daily Telegraph

WRAPIT COUPLES TO LOSE THEIR PRESENTS

Most of the 2,000 customers waiting for gifts from the collapsed online wedding list company Wrapit will not receive any of their presents.

The news came after the company's administrator, KPMG, revealed on Wednesday that it had ceased trading. KPMG also made more than half of the company's 73 staff redundant, and said the moves followed "unsuccessful attempts by the directors to find a buyer for the business."

Wrapit claimed its bank, HSBC (HSBA.L), had withheld funds crucial for the business' cashflow, and dozens of angry brides marched on the bank's head office to hand in a petition demanding action last week.

BRITANNIA PROFITS TAKE HIT FROM BAD DEBTS

Britannia's BRTB.L profits have been dragged lower due to bad debts on niche loans. Pre-tax profits for Britain's second-largest building society sunk from 82 million pounds to 51 million pounds in the first six months as arrears increased higher than the industry average.