PRESS DIGEST - British business - July 9

The Times

ANALYSTS FORECAST AVIVA DIVIDEND CUT

Shares in Aviva (AV.L) were under pressure on Wednesday night after it emerged that 12 top insurance analysts predict the insurer will cut its dividend by up to 50 percent in August. The consensus forecast expects the total divided will be cut from 33 pence to 25 pence, but one analyst predicts the amount could fall to as little as 15 pence. A cut would anger the group's 600,000 small shareholders, as well as professional investors for whom dividends are a vital source of income. Analysts Keefe, Bruyette and Woods cut their forecast for the annual payout by 25 per cent, pointing out that the group could save 100 million pounds a year.

EMBATTLED JJB SPORTS CHAIRMAN PUTS HIS MAIN HOME ON THE MARKET FOR 2.25 MILLION POUNDS

Sir David Jones, chairman of JJB Sports (JJB.L), has put his main home up for sale. Jones, whose position at the group has been rocked by revelations that he borrowed 1.5 million pounds from Mike Ashley, founder of rival group Sports Direct (SPD.L), is seeking 2.5 million pounds for the seven-bedroom property in West Yorkshire. Meanwhile the company has defended the stock market announcement it issued on Tuesday in which it said that its board had found no conflict of interest in Jones's loan from Ashley. JJB said the loan was initiated before Jones joined the group as a non-executive director. Ashley disputes this and his legal adviser has requested clarification from JJB.

ASHURST PROFIT DROPS

Leading City law firm Ashurst has reported a 35 percent drop in profit for the 2008-09 financial year. The company's profit per equity partner fell from 1.04 million pounds last year to 673,000 pounds on revenues of 301 million pounds. Ashurst recently removed a number of partners in a bid to boost profits. Nabarro, another City law firm, also reported a 35 percent fall in profits to 375,000 pounds. The group has axed 19 jobs and said that a further 19 are at risk with a new round of redundancy talks.

The Daily Telegraph

M&G FUND OFFERS LOANS LIFELINE FOR BUSINESSES

M&G has raised one billion pounds for the new UK Companies Financing Fund to provide loans to enable pension funds and other institutions to lend directly to medium-sized businesses in the form of a bond with a minimum term of five years. In return investors will receive "an attractive rate of interest". Chancellor of the Exchequer Alistair Darling welcomed the fund and said it was "a useful step in the right direction". M&G has 134.6 billion pounds under management and hopes to raise a further one billion pounds from investors in the fund.

The Independent

PRIMARK OVERSEAS DIRECTOR STEPS DOWN

Guy Young, Primark's director of international trading, has resigned after less than a year as the clothes retailer steps up its European expansion. Parent Associated British Foods (ABF.L) made the announcement to the company's staff last week. The move will be noted by retail analysts because Young was hired from continental rival C&A just last summer and it is unclear whether he has found other employment. Details of Primark plans to open stores in Belgium in November and in Austria next year will accompany a trading update which is expected to show it has outperformed some of its rivals.

OFCOM TO TACKLE "NOT-SPOT" MOBILE INTERNET ISSUES

Telecommunications regulator Ofcom has vowed to address the problems surrounding mobile Internet coverage in the UK in an effort to get the "not-spot" rural regions connected. Maps of 3G coverage from Ofcom reveal people in large swathes of Scotland, Wales and the Northeast could not access the Internet on their phones or through dongles. The watchdog said it will be examining the issues in greater detail and will work with public bodies to solve the problem. Mobile Internet is a crucial element of the government's effort to bring universal broadband coverage to the UK by 2012.

COMPETITION COMMISSION FIGHTS ON AGAINST PPI

The Competition Commission will press ahead with its campaign against payment protection insurance (PPI) schemes, which consumer lobby groups have condemned for their loopholes and poor value. The Commission will continue to fight against the schemes while it awaits the outcome of a legal appeal by Barclays (BARC.L) in protest against the PPI single premium ban. Peter Davis, Competition Commission deputy chairman and inquiry chairman, said: "Taking these steps now will help ensure there is no unnecessary delay in resolving the significant competition issues we found in this market."

The Guardian

ROSE ROCKED BY PROTEST VOTE OVER DUAL ROLE

Forty-two percent of shareholders in Marks and Spencer (MKS.L) voted in favour of supporting proposals demanding that executive chairman Sir Stuart Rose give up his role as chairman. The special resolution was filed by the Local Authority Pension Fund Forum and received the backing of 37.7 percent of those who voted with an additional 33.5 percent abstaining which effectively amounts to a 4 percent bloc in its favour. In order for the LAPFF resolution to succeed, it would require a 75 percent majority, but this result is a major embarrassment to the company.

UK OIL SECTOR WARNS OF 50,000 JOBS AT RISK

Oil & Gas UK has accused the government of placing too much emphasis on renewables and nuclear power and taking the oil and gas sectors for granted. The industry body said 50,000 jobs were at risk unless the ministers approved tax incentives. Malcolm Webb, chief executive of Oil & Gas UK, said the government had missed an opportunity to put the oil and gas sector on the road to recovery by making only small changes in the last budget. Webb's comments were given some support by Centrica's (CNA.L) chief executive Sam Laidlaw.

BACK SO SOON? NATIONWIDE REVIVES 125 PERCENT MORTGAGES

Nationwide has launched a 125 percent mortgage aimed at people trapped in negative equity but looking to sell their property. The return of 125 percent mortgages will come as a surprise as many thought they were consigned to the history books after a clampdown on lending amid the recession. But Nationwide described the mortgage as "very niche" and would only be available to existing customers with negative equity.

Prepared for Reuters by Durrants