PRESS DIGEST - British business - Aug 11

The Times

COWDERY SET TO LAND FRIENDS PROVIDENT WITH 1.87 BILLION POUND BID

After protracted negotiations lasting two months, Friends Provident (FP.L) is likely to agree to an improved 1.87 billion pound bid from Colin Cowdery's consolidation vehicle, Resolution (RSL.L). Issues such as Cowdery's potential profit-share package and Resolution's low-tax domicile in Guernsey, both of which have drawn opposition from Friends shareholders and directors, appear to have been resolved. Shares in both companies have risen, the outcome being that Resolution's offer now values the insurer at 80.1 pence per Friends share.

HEATHROW GETS BUSIER AS JULY DEFIES DOWNTURN

The airports operator BAA (FER.MC) has reported that 6.5 million passengers used Heathrow Airport during July, a like-for-like increase of 0.9 percent. The rise in passenger numbers coincided with a three percent fall in the number of flights departing the airport. BAA attributed the increase to fare reductions and recent poor weather which discouraged consumers from staying in the UK. Overall, however, the number of passengers passing through BAA's seven UK airports fell by 2.4 percent last month, compared with July 2008.

BAE SHRUGS OFF MALAYSIA SETBACK WITH 1.75 BILLION POUND DEALS

BAE Systems (BAES.L) has been awarded contracts from the Pentagon and Ministry of Defence to produce vehicle visions systems and laser targeting systems for the former and torpedoes for the latter. The 1.1 billion pound Pentagon contract and 369.5 million pound MoD contract outweighs the loss of a 700 million pound contract to supply the Royal Malaysian Navy with two frigates, although an agreement for less expensive ships could still be reached.

The Daily Telegraph

ECO-BOILER COMPANY BOOSTED BY TWIN DEALS

Alan O'Brien, the founder and chief executive of eco-boiler company Sabien Technology (SNT.L), has seen the value of his 50 percent stake rise by 3.25 million pounds after the start-up signed contracts with Serco (SRP.L) and a subsidiary of British Gas. The contract to sell its M2G product saw Sabien's share price quadruple from 7.5 pence to 30.5 pence. The company is already in talks with all other major utility companies about selling the technology which is known to increase the efficiency of commercial boilers by 10 to 25 percent.

SOUTHERN CROSS SLUMPS AS IT STRUGGLES TO FILL BEDS

Southern Cross shares tumbled 6 percent as profits fell on the back of lower occupancy rates attributed to the recession and an increased tendency for families to provide care at home. The care home operator's mature occupancy rate, which excludes newly developed or acquired homes, ended the 14-week period to July 5 at 88 percent, down on the 90.3 percent of 2008. For the third quarter, adjusted earnings before interest, taxes, depreciation and amortisation fell 9 percent to 22.2 million pounds.

PORTMEIRION'S NEW LINES TURN A PROFIT

Portmeirion (PMGR.L) has recorded a 31 percent rise in first-half profits, boosted by a sales increase of 13 percent in the UK and 31 percent in South Korea. The homeware company reported that revenue rose 10.9 percent to 17 million pounds in the six months to June, while pre-tax profits rose from 406,000 pounds to 532,000 pounds. It is optimistic of delivering strong full-year figures. The collapse of rival Waterford Wedgwood also boosted production.

The Independent

ORGANIC FOOD GROUP NAMES NEW CEO