PRESS DIGEST - British business - July 5

SUNDAY QUESTOR

RM [Buy]

Hill & Smith [Buy]

Templeton Emerging Markets Investment Trust(TEM.L) [Buy]

The Independent on Sunday

MEINERTZHAGEN TO TAKE ADVISER POST AT ORIEL SECURITIES

One of the City's most respected corporate bankers, Peter Meinertzhagen, has joined Oriel Securities, the fast-growing stock-broking firm, as an adviser. Meinertzhagen will help introduce new clients to the firm and help grow the business with chief executive Simon Bragg. "It's very exciting having someone of Peter's stature helping us," says Bragg. "Now is a good time for independent firms as there is no goodwill out there with companies."

SEVERN TRENT PUSHES FOR RADICAL WATER-SUPPLY RETHINK

Utility Severn Trent (SVT.L) is calling for a radical rethink over water supply, and is lobbying the government for its trading model concept to be included in the upcoming flood and water management Bill. According to Severn Trent's public affairs manager, Andrew March, rather than concentrating supply in the centre of their jurisdictions, utilities should move most of their water capacity nearer to their boundaries with rival groups. Severn Trent claims this means it would be easier to provide water supply to areas that are run by utilities facing chronic undersupply in times of drought.

CENTRICA SET TO MAKE ONE BILLION POUND HOSTILE BID FOR RIVAL.

Centrica (CNA.L) is likely to make a one billion pound-plus hostile bid for oil and gas group Venture Production (VPC.L). According to sources, the British Gas (BG.L) owner is gearing up for a hostile offer of at least 850 pence a share for its rival. However, Venture is understood to be holding out for 950 pence, while Legal & General (LGEN.L), one of its largest shareholders, is said to be open to a new, higher offer from Centrica. Venture's reserves are wanted by Centrica to supply its ten million retail customers.

The Observer

DARLING TO CLAMP DOWN ON BONUSES

Alistair Darling will announce this week that City banks that pay out lavish bonuses for short-term profits will be forced to set aside a larger cash cushion against losses. The chancellor's move comes as the government attempts to crack down on the practice that led to the credit crunch. Bankers in the Square Mile have been hopeful that the era of outsize pay packets is returning now that the darkest days of the financial crisis are apparently over. However, ministers have stepped up their rhetoric against the City's bonus culture in recent days.

NATIONAL EXPRESS: WE'LL EXTEND FRANCHISE