PRESS DIGEST - British business - Sept 9

The Times

IMPERIAL TOBACCO CHIEF DOUBTS HEALTH PROPOSALS WOULD REDUCE SALES

Gareth Davis, chief executive of Imperial Tobacco (IMT.L), has said proposals to change the way cigarettes and cigars are sold in Britain would not affect sales of his company's brands. Suggestions are being put forward by the Department of Health, which include packaging cigarettes in plain boxes and stopping packets of 10 cigarettes being sold. However, Davis said: "We need to concentrate on making sure that existing legislation, such as the change in the age you can buy cigarettes from 16 to 18, is properly enforced."

ORIGIN IGNORES BG'S ADVANCES AND TURNS TO AMERICAN GIANT

BG Group (BG.L) was considering leaving its 6.2 billion pound hostile bid for Origin Energy (ORG.AX) after the Australian company bolstered its defences against a takeover. Origin announced it would form a joint venture with American oil group ConocoPhillips (COP.N) to build a LNG plant and develop its coal-bed methane assets in Queensland. Citigroup analyst David Thomas said: "We believe it will be difficult for BG to match the Conoco deal."

METALRAX ANNOUNCES PRE-TAX LOSS

Metalrax (MRX.L) announced a wider first-half pre-tax loss because of goodwill impairment and exceptional items. The supplier of engineering and consumer durable products said it expects current year results to be broadly in line with market expectations. The company revealed that for its half year to June 30 it had a 5.3 million pound pre-tax loss. The amount is compared to a 436,000 pound loss a year earlier.

The Daily Telegraph

TRINITY TO CLOSE SEVEN NEWSPAPERS

Trinity Mirror (TNI.L), the UK's biggest regional newspaper publisher, will put 30 jobs at risk as it plans to close seven local papers and nine satellite offices in North Wales and the Northwest. Trinity Mirror said this summer that advertising revenues were falling faster than at any time in the past two decades. The publisher also promised to find 20 million pounds of new cost savings by next year. Sara Wilde, Trinity Mirror Northwest regional managing director, said: "I believe these changes will strengthen the power of our products in their marketplaces and meet both the needs of advertisers and readers in the face of challenging market conditions."

GLG PARTNERS RECRUITS TWO SENIOR MERRILL LYNCH FUND MANAGERS

GLG Partners has hired two fund managers from Merrill Lynch, the investment bank, to run its technology and energy portfolios. Anthony Burton, who ran a global long/short fund at Merrill, will now manage the London-based hedge fund firm's global technology portfolios with Philip Pearson. The focus will be widened to include the global media and telecom sectors.

ALLEN & OVERY'S 100 MILLION POUND GLOBAL INVESTMENT STARTS TO PAY

Allen & Overy, the law firm, has said a 100 million pound investment in its international network has begun paying dividends. The announcement comes as the globalisation of legal services continues to gather pace. The firm reported a 13 percent increase in profits for the year to the end of April. David Morley, a senior partner, said globalisation had served as the driving force behind its performance. He said the investment had seen it establish the presence of more than 25 lawyers in 18 of the 21 countries in which it operates.

The Independent

FLYBE BREAKS INTO PROFIT AFTER BA DEAL