PRESS DIGEST - Financial Times =2

PRUDENTIAL EYES EQUITABLE LIFE WITH-PROFIT FUND

Prudential (PRU.L: Quote, Profile, Research, Stock Buzz) is believed to be among the potential bidders for the seven billion pound with-profit fund of troubled mutual Equitable Life. According to sources familiar with the situation, the Pru has yet to decide whether its interest is in all or parts of the fund, having just taken on 1.7 billion pounds of with-profit annuities from Equitable. Equitable has sent information memoranda to interested parties and has already begun to hold early talks with a range of potential bidders.

FSA FINES AXA'S THINC 900,000 POUNDS

The Axa (AXAF.PA: Quote, Profile, Research, Stock Buzz)-owned financial advice company Thinc has been fined 900,000 pounds by the Financial Services Authority for advising on subprime mortgages without taking adequate care. The FSA found that Thinc had failed to obtain adequate financial information for some of its subprime customers, failed to show that their credit histories merited subprime mortgage sales, failed to demonstrate why particular products matched customer needs and failed to consider their affordability. Margaret Cole, FSA director of enforcement, said the fine demonstrated the serious nature of "poor record keeping", though the regulator had not determined the company to be guilty of mis-selling subprime mortgages.

TESCO WINS DOBBIES COURT CASE

Tesco (TSCO.L: Quote, Profile, Research, Stock Buzz) has won its legal dispute with Sir Tom Hunter, Scotland's richest man, after he failed to force Dobbies Garden Centres, in which the supermarket group has a majority interest, to abandon a 150 million pound refinancing plan. Sir Tom's investment vehicle, which owns about 29.2 percent of the garden chain, had argued that the plan was against the best interests of the minority shareholders. The Tesco-dominated Dobbies board will now proceed with a share issue that will force Sir Tom to pay 44 million pounds if he wishes to maintain his holding.