PRESS DIGEST - British business - Dec 24

The Times

CELEBRITY ENDORSEMENTS PAY OFF FOR SUPERMARKETS

Figures compiled by Nielsen Media Research have found supermarket groups dramatically increased their advertising budgets in 2007. Among others, Wm Morrison (MRW.L) increased its advertising spend by 61 percent to 18 million pounds, Tesco (TSCO.L) raised its expenditure by almost four million pounds to 71.2 million pounds, and Asda upped its spend by over five million pounds. Supermarket groups are also increasingly using celebrities to endorse their products. The combined strategy of increased expenditure and celebrity endorsements appears to be paying off, with all surveyed retailers enjoying increased sales during the year.

"OPPORTUNIST" APPROACH BY AUSTRIAN FUND REJECTED BY UK COAL

UK Coal (UKC.L) has rejected an approach by Vienna-based Meinl International Power MPOW.VI for its coal-mining business, which is estimated to be worth up to 400 million pounds. UK Coal is believed to view the approach as "opportunistic", and has refused to meet Meinl. Meinl has sought sensitive financial data about the business's assets without mentioning the price it was willing to pay. UK Coal, formerly known as RJB Mining, has been the subject of unsolicited bid approaches before.

SHOPPERS WORRY OVER THE SAFETY OF CHRISTMAS TOYS FROM CHINA

A Populous poll has found the biggest concern for parents shopping for toys this Christmas is the safety of toys made in China. Following a year in which Mattel (MAT.N) recalled 18.2 million Chinese-made toys from world markets due to safety-related fears, shoppers questioned in the survey said they would like to see toymakers move production back to their country of origin. The survey's findings also echo concerns expressed by Trading Standards officers, who say they lack the resources to prevent poorly made and counterfeit toys from entering Britain.

The Daily Telegraph

LONDON OFFICE PROPERTY MARKET TRANSACTIONS SLUMP

Research by the commercial property agency Cushman & Wakefield has found transactions in London's commercial property office market have fallen to their lowest level for over two years, with just 2.3 billion pounds worth of deals completed in the fourth quarter of this year. The City of London was particularly badly hit, with the value of deals falling to 1.7 billion pounds from 4.3 billion pounds in the previous quarter. The survey also found both the number of transactions and asking prices have fallen.

RYANAIR'S MILAN PLAN TURNED DOWN

Italy has rejected a plan by Ryanair (RYA.I) to set up a base at Milan's Malpensa airport. The move was aimed at bolstering the low-cost carrier's strategy of expanding its bases internationally. Ryanair presented plans for a multi-million pound investment programme which would see 12 additional aircraft operating out of the airport. But it is thought regulators were concerned about the financial package and low fares that Ryanair was proposing.

TULLOCH POSTPONES AIM FLOAT AFTER PROPERTY DOWNTURN

Tulloch Homes, the Scottish housebuilder, has abandoned plans to float on the stock market due to the deteriorating state of the UK property sector but has said it might consider private equity investment "at a future date". David Sunderland, chairman and chief executive, said he was still aiming to reach a turnover of 160 million pounds next year through organic growth and acquisitions. He also said acquisitions could be made without additional financing due to the company having access to funding packages which were put in place prior to the credit crunch.

The Guardian

HOMES HARDER TO SELL EVEN AFTER THREE MONTHS OF FALLING PRICES