PRESS DIGEST - British business - Nov 27

The Times

KELDA GOES TO CONSORTIUM FOR THREE BILLION POUNDS

Kelda Group KEL.L, owner of Yorkshire Water, has agreed to be bought for three billion pounds. Kelda said shareholders would receive 1,090 pence-a-share from the Saltaire Water consortium. Shareholders will also be in line for a 10.65 pence-a-share dividend, making a total of 1,100.65 pence. The deal values Kelda at a 25 percent premium over its regulatory asset value. Kevin Whiteman, chief executive of Kelda, said the offer represented a "great deal for our shareholders".

BRITISH AIRWAYS SCRAPS BID FOR IBERIA

A consortium led by British Airways (BAY.L: Quote, Profile, Research, Stock Buzz) and private equity firm TPG has scrapped its 3.4 billion euro bid for Iberia (IBLA.MC: Quote, Profile, Research, Stock Buzz). Sources said the offer was withdrawn because of the prospect of a competing all-Spanish offer, and Spanish savings bank Caja Madrid attempting to increase its stake. The consortium said it had concluded "it is not possible to make the bid under the terms of consensus and friendliness that we always thought indispensable to develop our project". Caja Madrid will now become Iberia's largest shareholder with 23.4 percent of the company.

KAZAKH OIL COMPANY TURNS TO BG IN SEARCH FOR ALLY

BG Group (BG.L: Quote, Profile, Research, Stock Buzz) is in talks with KazMunaiGas Exploration Production, a division of Kazakhstan's national oil group, over new joint ventures. Askar Balzhanov, chief executive of KMG EP, said the group was looking for joint operations that could also involve asset swaps and indicated he was in talks with BG Group, which is already its lead partner for a five billion dollar project in Kazakhstan. KMG EP has accumulated over two billion dollars in net cash resources and is aggressively seeking acquisitions.

The Daily Telegraph

VIRGIN MAY GET 200 MILLION POUND FEE FOR ROCK REBRANDING