PRESS DIGEST - British business -

Mail on Sunday

NEW ROW LOOMING FOR M&S

The Local Authority Pension Fund Forum has urged Marks & Spencer's(MKS.L) shareholders to call for the appointment of an independent chairman by next July. Manifest, which advises clients including pension funds and sovereign wealth funds on how to vote at annual meetings, said the extension of Stuart Rose's role to include chairman alongside his chief executive position "highlighted to many shareholders a failure of the company's nomination process". Voting for the resolution would be a safer means for investors to register their dissatisfaction rather than voting against Rose's re-election, which could damage the company.

LLOYDS PLEDGES MORE HELP FOR TROUBLED FIRMS

Lloyds Banking Group(LLOY.L) has acted in anticipation of a sharp rise in the number of struggling companies on its loan book by more than trebling the size of its corporate restructuring division. Lloyds will increase the number of restructuring specialists from 250 to 800 by the end of the year, with veteran troubleshooter Duncan Parkes heading the department. The unit is likely to get plenty of business from HBOS'HBOS.L integrated finance division, acquired as part of the merger between Lloyds TSB and HBOS last January, which issued debt in return for equity stakes increasing the bank's exposure to risk and also potential reward.

INTENSIVE CARE FOR FAIRLINE AS IT HITS A SQUALL

Fairline Boats is negotiating a refinancing with its banks in a bid to survive a difficult trading period. The luxury yacht and powerboat manufacturer has been placed into Royal Bank of Scotland's(RBS.L) global restructuring group to address its 30 million pound debt. Cavendish Corporate Finance was hired by Fairline last November to sell the business for a reported 100 million pounds, but the process was scrapped due to a lack of interest. 3i(III.L), which invested 40 million pounds in Fairline when it backed a management buyout in June 2005, insisted the company was operationally sound, with plans to bring two new models to market this year and three in 2010.

The Sunday Times

BRIT AND CHAUCER IN 800 MILLION POUND TALKS TO CREATE GIANT.

Chaucer Holdings is under pressure from its shareholders to accept a proposed all-share deal with larger rival Brit Insurance(BRE.L). No formal offer has yet been made, but it is expected that a nil-premium merger deal could emerge by the end of this week. The combined group would become one of the largest in the Lloyd's insurance market, with a capitalisation to rival those of Hiscox(HSX.L), Catlin(CGL.L) and Amlin(AML.L). Rebel investors, including Aberforth Partners(ASL.L), are thought to have been lobbying Chaucer chairman Martin Gilbert over the past few days.

EVERYTHING IN THE GARDEN IS LOVELY FOR WHITE STUFF

Lifestyle retailer White Stuff has announced record profits for the 2009 financial year. The company reported a 42 per cent rise in underlying profits to 13.3 million pounds in the year to April 26 2009, with total sales up 34 per cent to 58.4 million pounds and home shopping sales up 70 per cent. Profit margins were up 1.3 per cent. The retailer plans to open 30 stores over the next three years. Chief executive Sally Bailey said that the company has no plans to revisit a stake sale before a strategic review two years hence.

DIY GIANT FOCUS AIMS TO STRIKE DEAL WITH CREDITORS

Bill Grimsey, chief executive of Focus, Britain's third-largest DIY chain, has instructed a restructuring team from KPMG to prepare a company voluntary arrangement as he looks to secure the future of the stricken group. The company, owned by US private equity firm Cerberus, is understood to be ahead of budgeted sales for the past 12 months after widescale cost-cutting measures which included shedding 700 jobs.

SHAREWATCH

Carnival Corporation(CCL.L) [Outperformed the FTSE All-share index by 26 per cent]