PRESS DIGEST - British business - Dec 20

The Times

BIFFA OPENS ITS BOOKS TO PRIVATE EQUITY BIDDERS.

Biffa BIFF.L, the waste management group, has opened its books to the private equity groups Montagu Private Equity and Hg Pooled Management after they increased the headline value of their offer by 20 pence a share and promised to pay the dividend. The revised offer now values the UK's third largest waste company, which was demerged from Severn Trent in 2006, at 1.23 billion pounds. The offer price from the two private equity companies represents a 34.6 percent premium to Biffa's share price on demerger from Severn Trent.

CITY REGULATOR SEEKS CHANGE OF ATTITUDE AS IT TIGHTENS LENDING

The Financial Services Authority has proposed tough new rules to limit lending at some of the UK's biggest banks and building societies, saying banks have prioritised profit over prudence in the way they use the short-term money markets. The FSA's measures, put out to consultation with its members on Wednesday, are designed to avoid the sort of liquidity problems that led to the near collapse of the mortgage bank Northern Rock NRK.L.

NEW YEAR'S RESOLUTION AS COWDERY SELLS STAKE

Clive Cowdery, chairman of Resolution (RSL.L), has put his entire three percent stake in the closed life "zombie" funds group on the block, hoping to raise 145 million pounds. Cowdery, who founded Resolution four years ago, wants to cut his ties with the group ahead of its sale to Pearl Assurance, due to be completed in February. He has earmarked about 20 million pounds from the share sale for a new charity, the Resolution Trust.

The Daily Telegraph

PETRONAS BUYS STAR ENERGY

Star Energy STAR.L, one of the UK's prized gas storage businesses, has been acquired by Malaysia's Petronas (PETR.KL), which already owned 39 percent of the company. Petronas is paying 380 pence per share, valuing the company at 354 million pounds. Petronas began stake-building in Star Energy in 2005 and raised its holding from 29 percent to 39 percent in October amid talk that Italy's Eni was also interested in buying the company.

COMPARISON WEB SITE REBOUNDS SEVEN PERCENT

Shares in the financial comparison Web site Moneysupermarket.com (MONY.L)> rose seven percent or nine pence to 139.5 pence after it said first-half revenue would come in at 160.9 million pounds -- in line with analysts' expectations. The company's shares hit an all-time low this month on fears its business had become the latest victim of the credit crunch.

ABBOT FOUNDER VINDICATED BY 906 MILLION POUND PRIVATE EQUITY SALE

Abbot Group ABTG.L has been sold to the U.S. private equity firm First Reserve for 906 million pounds, netting some 117 million pounds for its founder Alasdair Locke. Abbot put itself up for sale about three months ago after being frustrated at what Locke said was the City's failure to put a sensible price tag on the shares, which were then languishing at about 260 pence. Locke founded Abbot in 1990 to invest in the shipping and offshore industries.

The Guardian

ASTRAZENECA PUSHES ON WITH DISTRIBUTION DEAL