PRESS DIGEST - British business - June 5

The Guardian

CITI 'RAN A MILE' FROM B&B SHARE RIGHTS ISSUE

Citi, one of the investment banks underwriting Bradford and Bingley'sBB.L 300 million pound rights issue is believed to be the driving force pressing for the cash call to be repriced. UBS UBS.VX made it clear that it would continue to support the troubled cash call despite the profits warning. On Monday, Bradford and BingleyBB.L announced that Citi and UBS had agreed to a restructured and scaled-down rights issue at 55 pence a share.

HBOS URGES INVESTORS TO TAKE UP NEW SHARES DESPITE DROP.

Some 2.1 million small shareholders in HBOSHBOS.L have been urged to take up their new shares in a four billion pound rights issue and ignore recent falls in the value of its stock. The company has offered investors two new shares at 275 pence each for every five shares they own. Thousands of small shareholders are expected to "tail swallow" taking up as many rights as possible by selling existing shares. Since the rights issue was announced six weeks ago, the value of HBOS shares have fallen sharply.

CARILLION CALL

Carillion(CLLN.L) is likely to switch to the support services sector of the construction market. Confirmation of this could come as soon as next week. Its shares, which look cheap compared to its peers, should get a boost from the move. The company will give a presentation of its support services businesses on June 30. It is also expected to update the market on any fair-value adjustments relating to its recent acquisition, Alfred McAlpineMCA.L.

The Independent

KINGFISHER CUTS TARGETS AS DEPRESSD HOUSING MARKET SINKS.

Kingfisher(KGF.L), which owns B&Q warned on Wednesday that a slowdown in the housing market and wider economy has hit the DIY sector. Sales at B&Q were down 8.1 per cent over the February, March and April compared with the same months last year. The group which employs 73,000 people has reduced its full-year targets but has not revealed by how much. Chief executive, Ian Cheshire, said that most of the industry is expecting a year of market decline.

ORANGE BOSS PROMISES THE FUTURE IS BRIGHT, DESPITE 450 JOB CUTS

The new boss of Orange, Tom Alexander, has claimed he would make investments in customer services and network upgrades. He also promised to reduce the company's reliance on Indian call-centres and create 500 more customer facing jobs. He warned, however, that he would axe 450 middle management jobs to turn around a company that has suffered from years of under investment. Analysts have said that it was difficult to fault the strategy, however, Orange has provided few details about what results will be achieved.

BA FIGURES DOWN AS ECONOMY, OIL AND HEATHROW T5 TAKE.

British Airways(BAY.L) carried 0.7 per cent less passengers in May than the same month last year. Slowing economic growth, higher oil prices and fall-out from the opening of Terminal Five at Heathrow all deterred travellers. BA said on Wednesday that its load factor fell 1.5 per cent to 71.8 per cent, compared with a year earlier. It has also warned that it may have to cut capacity later this year to help with higher fuel costs.

The Daily Telegraph

INDIANS REFUSE TO SELL CADBURY GOODS