PRESS DIGEST - British business - March 7

The Times

F&C FINDS HARD TIMES DO NOT RESPECT AGE OR EXPERIENCE

The Foreign & Colonial Investment Trust (FRCL.L) suffered huge stock market losses in 2008 following its decision to carry on investing in equities and borrowing to increase earnings. The world's oldest investment trust, founded in 1868, admitted that it had lost 680 million pounds last year, its worst performance since 1974, as its equity portfolio declined in value by more than a quarter to 1.78 billion pounds. The trust's net asset value dropped by 28.5 percent to 256.6 pence. Mark Loveday, the trust's chairman, said 2009 could be even worse for investors than the year before as share values continue to slip.

NANDO'S PERI-PERI MARINADE WINS INTEREST OF AMERICAN FAST FOOD GIANTS

Restaurant chain Nando's, which has 207 outlets in the UK, is understood to have elicited interest from Yum Brands (YUM.N), the American owner of KFC and Pizza Hut, as well as Brinker International (EAT.N), the U.S. operator behind the Chili's and Romano's Macaroni Grill chains. However, the discussions held between Capricorn Ventures International, the owner of Nando's which has also built a 25 percent stake in Clapham House Group, and the interested parties are being characterised by sources as "highly informal". CVI, which is controlled by South African entrepreneur Robby Enthoven, opened its first British outlet in 1992 in Ealing, West London. Analysts believe that an outright bid for Clapham, the Gourmet Burger Kitchen and Real Greek operator, is a strong possibility.

MAJESTIC ACQUISITION

Leading UK group Majestic Wine (MJW.L) has acquired Lay & Wheeler, a family-owned wine specialist, for a maximum consideration of six million pounds. The deal allows Majestic, the UK's biggest wine warehouse group, to offer clients a complete fine wine service from the vineyard to storage, cellar management and then secure delivery to their home, or sale within the wider fine market. Lay & Wheeler posted an aggregated profit before tax of 500,000 pounds in the year to March 2008.

The Daily Telegraph

LAWYERS TO EXAMINE GOODWIN PENSION

Royal Bank of Scotland (RBS.L) has approached City law firm Linklaters to examine the 16 million pound pension deal secured by Sir Fred Goodwin, the bank's former chief executive. Linklaters will investigate whether there are grounds for a comprehensive review of Goodwin and other employees' conduct preceding the government's 20 billion pound rescue payment. Chairman Philip Hampton has accepted a request from majority shareholder UK Financial Investments to investigate the issues. Sources close to the process said on Friday that the probe would also look at the roles of former chairman Sir Tom McKillop and Bob Scott, the former senior independent director, in negotiating Goodwin's pension package.

MARSHALLS MAKES LOSS BUT TARGETS OLYMPICS

Paving stone manufacturer Marshalls (MSLH.L) has slashed its dividend after posting a 4.5 million pound pre-tax loss. The firm's revenue fell six percent to 378.1 million pounds in 2008 as the building materials market declined in line with the slump in housebuilding. Chief executive Graham Holden said the domestic market had been hit by low consumer confidence and that the underlying picture was distorted by winter weather conditions and reduced inventories at distributors. However, the Yorkshire-based group saw its shares rise after revealing cost-cutting measures and evidence of "significant opportunities offered by the London 2012 Olympics".

MECOM SHARES FALL 16 PERCENT

Shares in newspaper group Mecom (MEC.L) dropped 16 percent on warnings that its failure to offload German and Norwegian titles could result in a covenant breach by the end of March. The group has also told shareholders that trading in the first weeks of 2009 had been "increasingly challenging" and subject to "uncertain advertising markets". The board has proposed selling Mecom Germany to Eden Holding for 136 million pounds and Mecom North Norway to Polaris Media for 66.3 million pounds in an effort to tackle its debts. Chairman Alasdair Locke said the disposals would put the group into a stronger financial position and help it engage in constructive talks with its lenders.

The Independent

"RUN ON UK" SEES FOREIGN INVESTORS PULL ONE TRILLION DOLLARS OUT OF CITY