PRESS DIGEST - British business - May 8

The Times

GLG EXPECTS INVESTMENT ASSET LOSS

GLG Partners (GLG.N) is expecting to lose more than 2.05 billion pounds in investment assets as disillusioned investors follow Greg Coffey out of the door. GLG's chairman and chief executive, Noam Gottesman, told shareholders on Wednesday the hedge fund had suffered 1.7 billion dollars of investor redemptions since late April, when the star Australian fund manager left the firm to start up on his own.

CONSERVATIVES TO SPEND TIME ON SHOP FLOOR AT ROLLS-ROYCE

Business groups welcomed a shift in attitude towards industry by the Conservatives on Wednesday, after the party announced that key politicians would spend time at Rolls-Royce (RR.L). A spokesman said David Gauke and Justine Greening, shadow Treasury ministers, and Charles Hendry, shadow minister for energy, industry and postal affairs, would visit the company throughout June.

OLD MUTUAL JOINS LIST OF COMPANIES EXAMINING LOW-COST BASE

Old Mutual (OML.L), the seven billion pound insurance giant, revealed on Wednesday it had considered relocating to a lower-cost regime. The news intensified the rising tide of anger against Treasury tax proposals. The company said it had explored moving its headquarters to a city such as Dublin or Geneva. A spokesman said: "We have a sizeable head office function in the UK. But, as with the rest of UK plc, we are concerned at the complexity of the tax regime, which continues to work against the UK as a place (in which) to do business."

The Daily Telegraph

GLAXO AND BAT PILE ON TAX PRESSURE

GlaxoSmithKline (GSK.L) and British American Tobacco (BATS.L), two of Britain's largest businesses, warned the government on Wedensday over plans that business fears would raise tax on companies' foreign earnings. The chief executives from both companies made clear that unless the Treasury rows back on its proposals, the government would have to face the consequences. Jean-Pierre Garnier, chief executive of GlaxoSmithKline, said: "We cannot operate out of an environment that is not supporting us."

CARPHONE FOUNDER SEALS ONE BILLION POUND U.S. DEAL

The founder of Carphone Warehouse (CPW.L), Charles Dunstone, will unveil a one billion pound investment deal from BestBuy on Thursday, in an attempt to become one of Europe's dominant retailers. The move will see Best Buy acquire a large shareholding in Carphone Warehouse's high street business. It will also aid the company in developing a new generation of large-format stores, which could eventually sell anything from washing machines to toasters in addition to its core mobile phone business.

COMPASS PUTS CHEFS ON THE MENU

Compass (CPG.L) has teamed up with Gordon Ramsay in a bid to upgrade the food it serves blue-chip clients. Leading chefs from the Ramsay stable will work with Compass subsidiary Restaurant Associates to develop menus and styles in its private dining business. The move comes as many UK companies are being forced to cut back in the wake of the credit crunch.

The Independent

LEGAL RISKS PUT FIRMS OFF TAKING ON NORTHERN ROCK VALUATION