PRESS DIGEST - British business - June 6

The Times

LLOYDS TSB EXPECTS 180 MILLION POUNDS BILL FOR US BLACKLIST

Lloyds TSB(LLOY.L) will take a 180 million pound hit to its first half figures. It is preparing to pay a multi-million dollar settlement for breaking US rules on dealing with individuals or companies from a blacklist of countries believed to sponsor terrorism, including Iran, North Korea and Cuba. Lloyds TSB is already fighting a 130 million dollar action from the New York District Attorney that accuses the bank of helping to launder the proceeds from a large securities fraud.

TATE AND LYLE UNDER ATTACK FROM PARAGUAY AND INDIA

A herb used by the Guarani tribe of Paraguay wiped seven pence off Tate and Lyle(TATE.L) to 455.25 pence. Wisdom Natural Herb said that it was ready to distribute a sweetener based on the stevia leaf across America. This would cut into already weak sales of Tate's Splenda. Indian drug producer, Alkem, said that it will produce Tate's Sucralose in Europe using different techniques so it does not violate Tate's patent.

BELLWAY

The UK housebuilder, Bellway(BWY.L), said that overall house reservations were down 31 per cent on a year ago. It has also added that it had lowered its estimate for the drop in the number of homes sold this year. It now estimates the fall in sales to be between ten and 15 per cent.

The Daily Telegraph

BP CHIEF SENDS WARNING TO RUSSIA OVER PRESSURE ON VENTURE

The chief executive of BP(BP.L), Tony Hayward, has warned that Russia must respect property rights and the rule of law if its economic growth is to be maintained. Hayward said that the company was committed to Russia, as tensions mount over the future of its Russian joint venture, TNK-BP. Investors appear to have shrugged off the news with BP's shares closing up two points at 583 pence on Thursday.

DEBT FEARS BEHIND VODAFONE US DEAL

Vodafone(VOD.L) has become one of the key beneficiaries of the credit crisis after its Verizon Wireless joint venture agreed to buy mobile network Alltel for 28.1 billion dollars. With its 45 per cent stake in the venture, Vodafone is boosting its presence in the world's biggest telecoms market. Vodafone will not provide any equity as part of the transaction. Outgoing Vodafone chief executive, Arun Sarin, said the deal made sense for the joint venture.

VIRGIN WARNS ILLEGAL DOWNLOADERS

From next week, Virgin Media will send a warning to those customers whose accounts are being used to download or share music. It is the first deal between an internet service provider and a record company. The campaign is being run with the British Phonographic Industry which represents the major record labels.

The Independent

SEVERN TRENT BLAMES SCANDAL FOR 41 PER CENT FALL IN ANNUAL.