PRESS DIGEST - British business - Feb 27

The Times

BLOW FOR INVESTORS IN ENTERTAINMENT RIGHTS

Entertainment Rights ERT.L has said it was in advance talks with a number of bidders. However, investors were likely to be left out of pocket as offers on the table were not enough to recover its debt of about 130 million pounds. Despite attempts to sell the group in its entirety, potential buyers are only interested in taking on its assets and operations. Prospective bidders are understood to include Apax-owned HIT Entertainment and Cookie Jar Group. Shares in the group plunged 10.55 per cent to 16 pence.

GKN CUTS JOBS AND DIVIDEND

GKN (GKN.L) has announced another 2,400 job cuts, bringing the total number of losses at the group to nearly 6,000, or 14 per cent of its global workforce. The British aircraft and motor engineer also reported a 130 million pound loss for 2008 and suspended its dividend for the first time in 29 years. GKN issued a bleak forecast for this year and was unable to rule out a further round of redundancies if conditions continue to deteriorate.

EXPECTED INVESTOR BACKING PUTS WILLIAM HILL ON A SAFE BET

William Hill (WMH.L) is to launch a 350 million pound rights issue as part of a 1.2 billion pound debt refinancing. The share issue, to be fully underwritten by adviser Citigroup, is tipped to be priced at a discount of 40 per cent to its share price of 246.75 pence. The decision to tap investors for new equity will inevitably result in a decision to scrap the final dividend, which analysts had forecast would be reduced to conserve cash. The refinancing will ease the covenants but at the cost of a higher interest rate.

Daily Telegraph

WHISTLEBLOWER SAYS HBOS CHIEF GIVEN RISK WARNINGS

Paul Moore, former head of risk at HBOS HBOS.L, has told the Treasury Select Committee that ex-chief executive Andy Hornby was personally and specifically warned the bank and its clients were "at risk" if the markets turned. The whistleblower, whose original claims that the bank's former management ignored risk were strongly denied a fortnight ago, delivered a 53-page document full of fresh claims to the committee. The document alleges that Moore met with Hornby on March 5 2005 "to give him an early briefing to warn him of controls failures."

STV TO PULL PLUG ON MORE ITV NETWORK SHOWS

STV Group will seek to broadcast more home-grown shows in 2009 by showing less ITV Network (ITV.L) programmes. The Scottish media company reported full-year results on Thursday showing an 11 per cent increase in regional advertising revenues as more domestic content was introduced into its schedule. Pre-tax profits rose from 4.4 million pounds in 2007 to 12.3 million pounds, but revenues dropped from 185 million pounds to 145 million pounds due to the loss of income from the sale of Virgin Radio and Primesight.

BBA AXES 350 JOBS AS PRIVATE JET TRAVEL FALLS

BBA (BBA.L) will cut 350 jobs this year due to a collapse in demand for private jet travel. BBA provides services for businesses and commercial jets and suffered a 20 per cent fall in demand for private jet travel in the last quarter of 2008. BBA, which makes 80 per cent of its revenue in North America, announced almost all of the job losses will be made in North America. Chief executive Simon Pryce said he is "not planning on (demand) recovering in 2009" but added the company is well placed to cope in "very volatile and tough conditions".

The Independent

LLOYDS SEEKS ITS OWN TERMS FOR ASSET SCHEME