PRESS DIGEST - British business - June 9

The Times

WOOLWORTHS PREPARES TO MAKE INROADS IN INDIA'S TOY MARKET

In an attempt to gain a foothold in the toy market in India, Woolworths WLW.L has forged a partnership with the Calcutta-based conglomerate RPG. The agreement will see Woolworths' Chad Valley toys sold at RPG's Spencer's Retail stores. There are also plans for the opening over the next 18 months of two standalone Woolworths outlets in India. Woolworths' Ladybird range of children's clothing is likely to be introduced in India by September.

BRITISH ENERGY

A French takeover of British EnergyBGY.L worth 40 billion pounds could be completed within weeks. British Energy owns most of the UK's nuclear sites. Electricite de France(EDF.PA) is having advanced talks with British Energy's advisers. It has now begun fundraising to formalise the bid. The company wants to raise about 115 billion pounds.

VODAFONE

In the telecoms industry, the mobile phone group Vodafone(VOD.L) is close to agreeing a deal to buy the Italian fixed-line broadband company, Tiscali for 1.2 billion pounds. It is a move that would put it in competition with BT(BT.L), Virgin Media and BSkyB(BSY.L) for customers in the UK.

The Daily Telegraph

BOOTS' BOSS FORGOES DIVIDEND PAYOUT

The executive deputy chairman of Alliance Boots [AB.UL], Stefano Pessina, said he will forgo a multi-million pound dividend payment as the company prepares to report its full year results after going private a year ago. Profits are expected to be well up. Banking sources are predicting as much as a 20 per cent rise to 770 million pounds. Mr Pessina said that he had never had a year without EBIT growth of less than ten per cent.

B&B CHARM OFFENSIVE TO PROMOTE 400 MILLION POUNDS RESCUE

Bradford and BingleyBB.L is to launch a charm offensive in an attempt to convince shareholders to support its 400 million pound fundraising. Management will meet investors to try to convince them that the deal with Texas Management Group is the best way to protect the company. The company made a deal to sell 23 per cent of the company to TPG for 179 million pounds. It is also raising 258 million pounds from a rights issue, the price of which was dropped from 85 pence to 55 pence per share.

CHARCOL JOBS TO GO AS LENDING SLOWS

It is expected that John Charcol will this week axe up to 50 of its 265 staff in a restructuring as it counts the cost of the slowdown in the mortgage market. Founder John Garfield will lead the restructuring and will install himself as chief executive, replacing Ian Kennedy. The last set of accounts from Charcol showed that the independent mortgage broker was making a loss and last year Mr Garfield and co-founder Charles Wishart tried to sell the company but rejected expressions of interest as short of the asking price of 50 million pounds.

The Independent

TESCO CAN WEATHER STORM WITH SOLID UK GROWTH