PRESS DIGEST - British business - May 20

The Times

SHELL'S PAY COMMITTEE BEARS BRUNT OF GROWING INVESTOR ANGER

Royal Dutch Shell's (RDSa.L) executive pay plan was rejected on Tuesday by investors, who also called for the resignation of the pay-setting committee. Three-fifths of shareholders at the annual meeting voted down a plan which would have seen directors awarded discretionary bonuses despite the company's failure to achieve targets. Though the rejection is only advisory, chairman Jorma Ollila said: "We as the board take the outcome of this vote very seriously." Last month, 38 percent of BP (BP.L) shareholders rejected its pay plans. Last week saw 46 percent of shareholders vote against pay proposals at Amec (AMEC.L).

PFI DEAL FOR M25 UPGRADE AGREED DESPITE ONE BILLION POUND.

The Highways Agency will agree on Wednesday to pay the Connect Plus Consortium, comprising Atkins (ATKW.L), Balfour Beatty (BALF.L), Egis Projects and Skanska (SKAb.ST), 6.2 billion pounds in today's prices over the next 30 years to maintain the M25 motorway and add a fourth lane in some sections. The cost of the project has risen by more than one billion pounds since Connect Plus was made the preferred bidder in July last year, despite the fact that plans to widen two congested sections of the motorway have been abandoned.

EUROPEAN THREAT HANGS OVER LLOYDS' HEAD

It is expected Lloyds Banking Group (LLOY.L) will issue a warning on Wednesday that it still faces the threat of action by the European Commission under European state aid rules. The UK Treasury is preparing to formally notify the European Commission of the details of Britain's asset protection scheme in order to ensure compliance with European state aid regulation. If the scheme is cleared the Commission will examine the deals the government made with Lloyds and with Royal Bank of Scotland (RBS.L). The regulator will then rule on whether restructuring plans at the two banks comply with European Union legal requirements.

Daily Telegraph

GREAT PORTLAND GOES HUNTING WITH 175 MILLION POUNDS

Great Portland Estates (GPOR.L) announced on Tuesday it is to raise 175 million pounds through a discounted rights issue to fund an acquisition spree. Shares in the property group rose by seven percent despite the announcement, alongside the report of a 43.5 percent fall in net asset value. Great Portland will invest up to 175 million pounds of its 640 million pound war chest by the end of 2010, having identified 1.2 billion pounds of potential targets. The company reported a 28 percent fall in the value of its portfolio, but reiterated its debt position had a "comfortable" loan-to-value ratio of 45 percent.

SUN SHINES ON TUI'S SUMMER BOOKINGS

TUI Travel (TT.L) has seen its level of summer holiday bookings increase over the past fortnight. Cumulative summer bookings are 16 percent lower this year, closely in line with a 17 percent cut in capacity, but fell by just ten percent in the last eight weeks and five percent in the last fortnight. Bookings over the past two weeks are five percent up on last year when allowing for cancellations related to the swine flu outbreak in Mexico. First-half seasonal operating losses increased from 250 million pounds to 289 million pounds, while pre-tax losses widened by 13 percent to 333 million pounds.

AHMED MOVE TO HEAD TATE & LYLE GIVES SHARES A FILLIP

Shares in Tate & Lyle (TATE.L) reached a seven month high after it was announced Javed Ahmed will replace Iain Ferguson as chief executive. Ahmed, Reckitt Benckiser's executive vice-president of European operations, will take over in November, inheriting a company whose share price has fallen by 11 percent in the past three years. Ferguson's tenure saw declines in full-year profits, multiple debt downgrades and an ejection from the FTSE 100 index. The market responded with optimism at Ahmed's appointment, which completes a boardroom shake-up at the sweeteners group.

The Independent

SHAREHOLDERS REVOLT OVER NEXT PAY CLAIMS