PRESS DIGEST - Financial Times - June 10

Financial Times

OSBORNE RAISES HEAT ON BANK BONUSES

George Osborne has launched a renewed assault against bank bonuses, in a move that indicates the Conservative Party's willingness to fight the election pledging hard-hitting curbs on City excesses. In a speech to the Association of British Insurers on Tuesday, the Shadow Chancellor of the Exchequer said: "The banks should be using their profits to rebuild their balance sheets, not to hand out huge bonuses while the rest of the economy picks up the pieces for the follies of finance." He also attacked the Treasury's "absence" from the European debate on contentious proposals to regulate hedge funds.

REGULATOR TO SOFTEN FOCUS ON KEEPING CITY'S EDGE

Lord Turner, chairman of the Financial Services Authority, revealed on Tuesday the City watchdog is set to soften its focus on maintaining the City's competitiveness in relation to other financial centres. Speaking at the biennial gathering of the Association of British Insurers (ABI) in London, he said the emphasis will now be put on "competitive markets rather than competitiveness". His comments are expected to spark anxiety in the banking and alternative investment sectors as many participants fear that new rules will increase costs and cut into profits. The ABI has urged the government and the City watchdog to strive to keep Britain's competitiveness in its response to the economic slowdown.

GAMBLING SECTOR AVERTS LEVY THREAT

The UK's gambling industry has committed to provide 15 million pounds over the next three years to tackle addiction, a move which is designed to stave off the government's threat of a statutory levy to fund research. The five-million-pounds-a-year contribution will be organised under a tripartite agreement, with Responsibility in Gambling Trust, an addiction charity, providing the funds, a new Responsible Gambling Fund distributing the money, and an independent strategy board offering advising services to the Gambling Commission on problem gambling needs. Gerry Sutcliffe, the sports minister, said: "With all three elements in place, the strategy board will have the industry commitment and resources to be able to do the job that it was set up to do."

550 MILLION POUNDS BID FOR WOOD MACKENZIE

Charterhouse Capital [CHCAP.UL] has launched a 550 million pounds bid for Wood Mackenzie, the energy research and consultancy group, in what could be the biggest UK leveraged buyout in 2009. The offer by the private equity group, seeing off several rival bids, is below the 650 million pounds sought by Wood Mackenzie's troubled private equity owner Candover (CDI.L) and Goldman Sachs, its adviser. A source close to Charterhouse, which plans to expand Wood Mackenzie, said the deal would be financed with about half debt and half equity.

SETANTA TRIES TO SELL STAKE TO BT AND ESPN

Struggling sports broadcaster Setanta has tried to offload an equity stake of an unknown size to businesses, including BT (BT.L) and ESPN, Disney's sports business. The company, which needs to raise 100 million pounds to stay afloat, was looking for offers in a range of 30 million pounds to 50 million pounds in the past month for the equity stake, according to three people with knowledge of the discussions. Setanta has been seeking additional resources to plug the funding gap by its failure to keep hold of its English Premier League rights packages beyond 2010. BT and ESPN declined to comment.

DOMINANCE OF BSKYB CRITICISED

Dan Marks, the outgoing chief of BT Vision, BT's (BT.L) television business, has criticised BSkyB's (BSY.L) dominance for the troubles faced by the UK pay-TV market. Marks, who will leave the group in June, said: "What is happening to Setanta is a pretty good example of the challenges that are faced by everybody in this marketplace, which is so profoundly dominated by Sky." He said it would be "quite challenging" for BT Vision to meet its financial target of two million-three million subscribers by 2011, unless Ofcom accelerated its review of the pay-TV industry which would enable BT to access BSkyB's premium film and football content "on reasonable terms".

HORLICK REVEALED AS POTENTIAL BIDDER

The battle for the control of Bramdean Alternatives has taken a new turn after Nicola Horlick was revealed as the mystery party in negotiations with the 178 million dollars alternative investment fund run by her asset management firm. The City "superwoman" made the approach through a recently incorporated group called Petersfield Asset Management Limited. Property tycoon Vincent Tchenguiz, who is the largest investor with a 28.8 percent stake, has put forward other plans that will be voted on at an extraordinary shareholders' meeting next week.

IG REAPS BENEFITS OF MARKET VOLATILITY

Shares in IG Group (IGG.L) jumped 24.25 pence, or 11.14 percent, to 242 pence after Britain's leading spread betting group reported a 30 percent rise in annual pre-tax profits. Revenues jumped 40 percent for the year ending May 31 to 257 million pounds, and profits before tax increased 30 percent to 125 million pounds after the takeover of FX Online Japan in September. Despite suffering a big jump in doubtful debts in October following the UK bank bailouts, IG posted a record number of new clients last year, with 74,000 new accounts opening in 2008.

NET-A-PORTER DEMONSTRATES STRENGTH OF BUSINESS MODEL AS PROFITS TREBLE

Net-a-Porter, the web-only luxury fashion retailer, has demonstrated the strength of online shopping, after it more than trebled pre-tax profits in 2008. The privately-held London-based company increased its pre-tax profits from three million pounds to 10.1 million pounds in the 12 months to January 31. At a moment when high street competitors were battered by the recession, Net-a-Porter increased sales by 47.8 percent to 81.5 million pounds during the same period. Natalie Massenet, the group's founder and chairman, cited the careful product selection and the thorough approach of the buying team for much of 2008's growth.

GREENE KING SWOOPS FOR 11 PUBS

Pub operator Greene King (GNK.L) has announced the acquisition of 11 managed freehold pubs from Punch Taverns (PUB.L), its ailing rival, for 30.4 million pounds. The company used the proceeds raised from April's 207.5 million pounds rights issue to fund the deal, which was completed at a discount of about seven percent below book value. Punch, which has been offloading its pubs in a bid to cut its five billion pounds debt pile, will use the cash raised from the deal in its payment of a 224 million pounds convertible bond that matures in 2010.

Prepared for Reuters by Durrants