PRESS DIGEST - British business - Nov 1

The Mail on Sunday

TRAVELODGE AXES 15 HQ STAFF

In an effort to contain costs, Travelodge [DUBAHT.UL] has shed 15 head office staff and four regional workers. A spokesman for the budget hotel chain confirmed the redundancies, noting that the group is currently engaged in a price war and needs to keep costs down. No further redundancies are expected. Travelodge recently cut prices from 29 to 19 pounds-a-night and is competing for market share with rivals Premier Inn and Holiday Inn Express.

EASTERN FOCUS FOR GSK

According to analysts, GlaxoSmithKline (GSK.L) may seek to expand in India or China as it takes its acquisition strategy to emerging markets. Robin Davidson of Edison Investment Research says China and India are attractive to GSK because they have a large number of companies which make vaccines and biologics, the two areas in which GSK wants to expand. GSK chief executive Andrew Witty made his desire for diversification clear when he announced third-quarter results last week.

RANK LASHES OUT AT GAMBLING TAX

The chief executive of Rank Group (RNK.L), Ian Burke, has written to the Treasury appealing for changes to gambling tax. He requests the newly raised bingo tax be cut from 22 percent to 15 percent and that poker games should be taxed less stringently than casino games. He also says there should be no increase in tax on fruit machines. Burke describes the social and economic damage resulting from these taxes and points to the closure of 100 bingo clubs and 14 casinos and the loss of thousands of jobs.

The Sunday Times

HOLLYWOOD BACKING UK DIGITAL FILM MOVE

Odeon and UCI Cinemas is poised to roll out a new generation of digital projectors after securing 35 million pounds in funding. The move comes ahead of the release of a new batch of 3D films and Odeon has won the backing of three Hollywood studios. The film industry is eager for cinemas to upgrade technology in order to allow 3D releases to be seen as intended and also allowing them to increase ticket prices. Under the terms of the deal, Digital Deployment Associates, a tax-efficient vehicle backed by private investors, will buy the projectors for Odeon.

CURTAIN UP ON 100 MILLION POUND THEATRE DEAL

Ambassador Theatre Group is currently in the process of finalising the acquisition of the majority of Live Nation's 17-strong theatre estate. The deal, thought to be valued at just under 100 million pounds, will create the country's biggest theatre chain. The new chain will also dominate London's West End, where rivals include Lord Lloyd Webber's Really Useful Group. The acquisition was financed via increased bank borrowing and cash raised from shareholders -- including property magnates, stage impresarios and media executives.

EMAP ASKS FOR HELP ON LOANS

Emap [EDNCOP.UL], the business publisher part-owned by Guardian Media Group [GRMDG.UL], has asked lenders to relax next year's loan covenants in order to allow it greater flexibility to invest in the business. GMG's private equity partner Apax has already written off its investment, while GMG has agreed to let Emap pay down its debts before taking money out of the business. Emap reported earnings of 42 million pounds in the six months to September, three percent down on last year.

The Sunday Telegraph

BA FACES RECORD LOSSES AS WINTER STRIKES LOOM