PRESS DIGEST - British business - April 2

The Times

VIRGIN AND DIC HOLD TALKS ON FUNDING BRANSON'S PLANS FOR EXPANSION

Virgin has held preliminary informal talks with a view to securing investment backing from Dubai International Capital, the $12 billion (6 billion pound) sovereign wealth fund. It is understood that Virgin executives recently visited Dubai to meet representatives of DIC to discuss potential deals. Goldman Sachs has been retained by the Virgin Group to explore revenue-raising options to finance an expansion of Virgin Active, which has already opened two gyms in Dubai, is planning several more, and is considering a move into countries such as Italy, Portugal and South Africa.

ALBA LOOKS AT HIGH MARGINS TO HALT LOSSES

Alba said on Tuesday that losses for the past year would far exceed expectations, blaming fierce competition on the high street. The consumer electronics distributor of brands such as Goodmans, Grundig and Bush said that tumbling prices meant that it was impossible to make money supplying entry-level flatscreen televisions to leading retailers, as it announced that trading losses for the year to March 31 were expected to be 10 million pounds. Investec, the house broker, forecast 6.7 million pounds. "We have been in a difficult trading environment for a couple of years, it has become more difficult and we are restructuring accordingly," said Andrew Rose, Alba finance director.

HANSON WALKS AWAY AS MOSS BROS FAMILIES 'HOLD OUT FOR HIGHER OFFER'

The increasingly protracted takeover saga of Moss Bros took its latest twist on Tuesday as it emerged that John Hanson, the rebel shareholder, has scrapped plans to table a bid for the menswear retailer. Hanson, who heads rival chain Greenwoods, said that he was conceding defeat after weeks of trying to court the Moss and Gee families. "We are withdrawing," he said, adding that the families - who together control about 26 percent of the company's shares - were "holding out for a higher offer" than the indicative 40 million pound approach made in February by Baugur, the Icelandic investment group. Speculation is rife that Laura Ashley could make a bid, with the home furnishing chain having built up a 5.96 percent stake through a series of recent purchases.

The Daily Telegraph

FORMER M&S CHIEF HAILS ROSE PROMOTION