PRESS DIGEST - British business - May 30

The Times

LE TISSIER COMES OFF THE BENCH TO RESCUE SOUTHAMPTON

Pinnacle Property Consultants, a consortium of businessmen fronted by former player Matthew Le Tissier, has paid almost 500,000 pounds to enter into exclusive talks with Southampton Football Club's administrators over a possible takeover. The club, whose parent company Southampton Leisure Holdings PLC fell into administration in April with nearly 40 million pounds of debt, could not pay its employees in March and was itself on the brink of bankruptcy. Pinnacle, which is linked to Aviva (AV.L), Southampton Leisure Holding's biggest creditor, has now 21 days to strike a deal with the football club. A second suitor, a wealthy European family, is believed to be waiting to make its move.

BAD DEBTS AND FALLING DEMAND FOR WATER REDUCE SEVERN TRENT PROFITS TO A TRICKLE

Severn Trent (SVT.L) saw its profits fall by 13 percent to 168 million pounds for the year to March 31, hit by declining demand and rising bad debts amid the recession. Britain's second-largest water company said that demand had dropped by about five percent because of the downturn, although it identified signs that the conditions were starting to become stable. Bad debt increased by 6.6 million pounds to 34 million pounds, representing 2.3 percent of total turnover. Despite the poor performance, Severn Trent said its full-year dividend would be 67.34 pence a share, a 2.6 percent increase. Turnover rose by 5.8 percent to 1.6 billion pounds.

MOSS BROS APPEARS WELL-SUITED TO MAKE THE MOST OF UNCERTAINTY OVER JOBS

Moss Bros (MOSB.L), the menswear chain, has reported a surge in demand for its suits, as growing uncertainty over jobs in the UK has been prompting consumers to focus brushing up their interview skills and presentation. Sales of business suits in the 16 weeks to May 23 rose by 27 percent, although like-for-like sales fell by 3.9 percent. Brian Brick, the tailor's new chief executive, said: "Our core competency of suit selling remains very strong, with our position as the UK's No 1 branded suit specialist in no doubt." In March, the 155-store retailer reported a pre-tax loss of 9.3 million pounds for the 53 weeks to January 31, including exceptional items of 4.3 million pounds.

The Daily Telegraph

O'BRIEN WARNS INDEPENDENT'S REFINANCING IS THREATENED

Denis O'Brien, the second-largest shareholder at Independent News & Media (INME.I) , has warned that there is a "less than 50-50 chance" that a 175 million pounds bond will be refinanced by the media group. The Irish telecoms billionaire said that he would like to see the Independent newspaper survive but added that the loss-making title should not be kept alive if it is not benefiting its investors. He warned that the group could lose the backing of its banks because of the delaying tactics of the bondholders, which include Pioneer, Invesco and Aviva. "If they think Denis O'Brien is going to write a cheque to the bondholders, then they are smoking dope," he added.

BARCLAYS CAPITAL TO ADD 800 STAFF

Barclays Capital (BARC.L) is planning to add about 800 bankers in its workforce in 2009 as it aims to become a leader in equities and corporate advisory work. The bank has appointed 90 front-office equities traders in Japan and 120 in Europe and plans to hire another 100. It is also expected to recruit about 65 senior corporate finance advisers, mostly in the UK. BarCap has already taken on some stars, such as Sam Dean, formerly of Deutsche Bank (DBKGn.DE), as co-head of global equity capital markets, and Jim Renwick, who joins from UBS (UBSN.VX) to lead UK equity capital markets.

DISCOVER LEISURE SEELS CVA DEAL

Aim-listed Discover Leisure has secured backing from Lloyds (LLOY.L) and RBS (RBS.L) for a restructuring plan that will see its debt pile cut and the company operate from five stores. Under the terms of the deal, the group will restructure 50 million pounds of its debt. However, it still has to convince unsecured creditors to approve a company voluntary agreement (CVA). Mark Firmin, of KPMG's restructuring practise, said that if the CVA deal is agreed, Discover Leisure would be in a position to focus on restructuring for future survival and success.

The Independent

MINI ENJOYS A SUMMER SURGE