PRESS DIGEST - British business - June 4

The Times

O'LEARY PREDICTS THAT RYANAIR'S LOW-COST RIVALS WILL COLLAPSE...

The chief executive of Ryanair (RYA.I), Michael O'Leary, has welcomed higher oil prices, saying that they will drive 'crappy competitors' out of business. O'Leary identified Sky Europe, Flybe and Jet2 as rivals he expected to go bankrupt in coming months because of rapidly rising fuel bills. Mr O'Leary said that he expected only five carriers, Ryanair, easyJet (EZJ.L), British Airways (BAY.L), Air France (AIRF.PA) and Lufthansa (LHAG.DE) to break even or make a profit this year.

OFGEM TO LOOK INTO CLAIMS THAT ENERGY GROUPS MISLED.

British Gas (BG.L), E.On EONG.DE and nPower face a regulatory crackdown after Ofgem began investigating claims that customers using prepaid meters were being hoodwinked into switching to more expensive services. Ofgem said in an open letter that 63 per cent of electricity prepayment meter customers mistakenly switched their service last year to one of the three companies, and that 56 per cent of transferring gas customers made the same mistake. The findings are part of a wider Ofgem inquiry into competition in the gas and electricity markets which was announced in February. Ofgem said that customers could be swapping to more expensive suppliers because of aggressive doorstep and telephone campaigns.

ORANGE JOB CUTS

Tom Alexander, the new chief executive of Orange, is on Wednesday expected to announce several hundred job cuts as he sets out his plans for a revival of the mobile phone and broadband operator. Alexander plans to axe several hundred managers but will increase call centre staffing levels as he carries out a shake-up of the company's network and retail and customer services.

The Daily Telegraph

AXA TIES CUT AFTER 51 YEARS

In a move designed to secure its future as an independent small company specialist, Throgmorton has parted ways with Axa Framlington. Throgmorton, which has used Framlington's services for 51 years, will announce on Wednesday morning that it has replaced the AXA-owned business with BlackRock, one of the world's biggest investment managers. Sources say that BlackRock's hedge fund expertise will give Throgmorton the ability to go short on small company stocks, which have been performing badly since the credit crisis. BlackRock will waive fees until Throgmorton recoups switching costs.

TNS PLANS 500 JOB LOSSES AFTER MERGER WITH GFK

Taylor Nelson Sofres TNS.L is intending to save 76 million pounds over the next three years with around 500 job losses as part of its plan to create the world's largest market researcher in a merger with GfK (GFKG.DE). The jobs axe is likely to fall heavily at GfK's Nurnberg head office, as the renamed GfK-TNS relocates its main listing and headquarters to London. The cost savings announced on Tuesday were at the top end of expectations and the company has set itself a medium-term target of taking margins from 11.7 per cent to an industry-beating 15 per cent. TNS shares closed at 259 pence, up 3.5 pence.

ECT DEAL MOVES MAY GURNEY INTO WASTE

Support and construction services group May Gurney (MAYG.L) is moving into the municipal waste market with the acquisition of ECT Recycling. May Gurney is paying 3.4 million pounds for ECT and will take on 6.4 million pounds of debt and a further 5.5 million pounds of obligations for hire purchase agreements. ECT made sales of 46.9 million pounds in the year to end March and has waste disposal contracts with the Somerset Waste Partnership, the London borough of Ealing and eight other long-term local authority contracts.

The Independent

BRITAIN GIVES NISSAN 6.2 MILLION POUNDS SUV GRANT