PRESS DIGEST - British business - Feb 12

The Times

FSA DELAYS PEARL'S TAKEOVER OF RESOLUTION

Pearl Assurance's takeover of ResolutionRSL.L has been called into question after the Financial Services Authority on Monday effectively imposed a three-week delay on the deal. The FSA is questioning whether policyholders will be disadvantaged by the timing of Pearl's plans to free capital from the Resolution life funds. It is unclear how much capital Pearl wants from the fund and Pearl has declined to comment on specifics. The delay marks the second setback to the bid timetable, has spooked investors and sent shares falling by six per cent to 672 pence at Monday's close of trading.

MARKET WOES WEIGH ON HARGREAVES LANSDOWN

Stockbroker Hargreaves Lansdown, which floated last May at 160 pence, saw its shares drop below the float price on Monday to 158 pence, down 9.75 pence, on fears it will issue a warning on growth with first-half results due on Tuesday. Investec repeated its 'sell' advice saying it expected the weak stock market to hit its flow of funds from investors. Investec said its funds under management forecast target for the year to end June, of 12.8 billion pounds, looked challenging as the market is off 10 per cent this year.

RUMOUR OF THE DAY

It is rumoured Northern Foods(NFDS.L: Quote, Profile, Research, Stock Buzz) is looking to buy Pasta Reale, the family-owned, West Sussex-based maker of fresh pasta, soups and sauces. Pasta Reale was put up for sale in January and had a turnover of around 30 million pounds last year. Northern Foods, which saw shares close 90.25 pence, down 0.5 pence, is known to be keen to purchase bolt-on acquisitions.

The Daily Telegraph

ST MODWEN FACES 35 MILLION POUND HIT TO VALUES