PRESS DIGEST - British business press - Dec 18

The Times

SHAKE-UP AT SCHRODERS AS FINANCE DIRECTOR QUITS

Philip Mallinckrodt, the nephew of billionaire Bruno Schroder, was promoted to the main board of the Schroders(SDR.L) fund management group on Wednesday. Mr Mallinckrodt was appointed in recognition of his success in transforming the group's private banking division. He is also tipped as the likely successor to Michael Dobson, the chief executive who has run the group since 2001. Schroders also revealed that neither it nor its clients had any direct exposure to the Madoff investment scandal.

BANK FEARS HIT PREMIUM BARS

Premium Bars and Restaurants saw its shares lose a third of their value on Wednesday following an admission that it had failed to renew its banking covenants. Instead, the group's banks want it to raise additional funds to meet its short-term cash requirements. The company is negotiating with its key stakeholders to secure sufficient funding, and is said to be confident of securing the money soon. The company cautioned, however, that it could not be certain of continued support from its banks. Its shares fell 1.375 pence to reach 3.125 pence.

OPTIMISM BUILDS IN TAYLOR WIMPEY AFTER E-MAIL LEAK

On Wednesday, Taylor Wimpey's(TW.L) shares soared more than seven per cent as dealers speculated the housebuilder might resolve its financing issues within coming weeks. The speculation arose following a leaked e-mail from chief executive Pete Redfern, which told staff the company has had "very productive negotiations" with its banks about its debt over a two-week period. The news increased the confidence that it was close to reaching an acceptable solution for the company.

The Daily Telegraph

DAIRY CREST IN MOVE TO EASE DEBT WORRIES

Dairy Crest(DCG.L), the maker of Cathedral City cheese, has made moves to decrease risk in its 658 million pound pension scheme, and lower currency exposure in its debt pile. However, analysts have warned that the group could still face banking covenant issues in 2009. Last month, Dairy Crest warned that profits would fall ten per cent this year. The company has bought a 150 million pound bulk annuity policy from Legal & General(LGEN.L) to insure part of its pension liabilities.

F&C CUTS 60 JOBS TO REDUCE COSTS

F&C Asset Management(FCAM.L) has announced it will cut roughly 60 jobs as part of its drive to reduce costs by 15 million pounds this year. The group has admitted to "downward pressure on revenues and asset margins". It has 900 employees, and the measures will mainly impact those in back-office functions. Friends ProvidentFP.L, which owns 52 per cent of the asset manager, signalled last month it was abandoning its attempts to sell its stake in F&C.

HUNTER SET TO PRUNE WYEVALE STAKE IN DEBT-FOR-EQUITY SWAP

Sir Tom Hunter, the Scottish entrepreneur, is likely to lose a major part of his stake in garden centre group Wyevale in a debt-for-equity swap with his bank HBOSHBOS.L, which is the group's only lender. HBOS is set to write off the 370 million pounds owed by the group, and the move is likely to leave the bank as its largest single investor. A spokesman for Sir Tom said: "The negotiations are ongoing and positive but they have not yet concluded. We are confident we will retain a major shareholding in that business which will be well financed going forward."

The Independent

PERMIRA INVESTORS REDEEM PLEDGED CASH