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

Former Marks & Spencer (MKS.L) chairman Paul Myners has leapt to the defence of current chief executive Sir Stuart Rose, the subject of shareholder disquiet pertaining to his promotion to executive chairman. Myners underscored the importance of Rose remaining at the retailer for longer than had been expected, explaining: "We must ensure we see the wood for the trees. The good news for M&S shareholders is that Stuart is committing for a further three years." Institutional shareholders remain vehemently opposed to Rose's elevation, Schroders head of UK equities, Richard Buxton, saying: "Rose is sufficiently arrogant to say that if you don't want me to take this role I will leave. The company is bigger than an individual."

CONSORTIUM TARGETS WH IRELAND

Former Conservative Party treasurer Lord Marland heads a consortium that has struck a deal to acquire 26 percent of WH Ireland and take two seats on its board, paying 1.7 million pounds on an initial 9.94 percent stake. Subject to approval from the Financial Services Authority by June 30, the consortium plans to lift its stake to at least 26.05 percent. Marland said of WH Ireland: "This is a British company that has done very well and we think it has a very good platform in the current climate."

GSK DEFENDS SAFETY RECORD OF HIV DRUG

A report indicating that GlaxoSmithKline's (GSK.L) abacavir HIV drug could increase heart attack risk has been met with defiance by the drugs group. Indeed, the latter said that the study, by the Data Collection on Adverse Events of Anti-HIV Drugs, was "unexpected, since we have not seen similar findings in our studies, and we are unaware of any potential biological mechanism that would explain them." The US drug regulator FDA said that while the D:A:D findings were incomplete, GSK's analysis of abacavir's safety was inconclusive.

The Independent

METRONET NEARER EXIT FROM ADMINISTRATION