PRESS DIGEST - British business - Sept 19

The Times

PRIMARY HEALTH RAISES FUNDS

Primary Health Properties (PHP.L) has become the latest real estate-based group to raise funds in order to benefit from opportunities to acquire assets and reduce debt. The company is scrutinising 21 properties worth just over 90 million pounds. Primary Health has raised 60 million pounds, before expenses, through a placing and open offer pitched at 230 pence. Although the shares contracted almost 10 percent following the move, they have outperformed the broader sector over the past month and analysts believe the value of its properties could start to rise.

The Daily Telegraph

BA DIVES INTO DOGFIGHT: UK AIRLINE BIDS TO TEAM UP WITH JAL

British Airways (BAY.L) has intervened in the battle between American Airlines (AMR.N) and Delta (DAL.N) over the future of Japan Airlines (9205.T). The company is lobbying on behalf of AA, which is its partner in the Oneworld airline alliance, after Delta tried to lure JAL into the rival SkyTeam alliance. It is reported that Delta has offered to inject 50 billion yen (336 million pounds) into JAL in return for a stake with the condition that it defects to SkyTeam. AA is believed to have made a counter offer of 300 million dollars (185 million pounds).

AVIVA PAYOUT

An offer by Aviva (AV.L) to pay out 500 million pounds to nearly one million policyholders in two of its with-profits funds has been approved by the High Court. The two funds are CGNU and Culac, also known as the company's "inherited estate". Aviva is sitting on a surplus of 1.2 billion pounds in the two funds. Eligible customers will receive between 200 and 1,150 pounds each.

BLUEBAY SUFFERS

Full-year pre-tax profits at BlueBay Asset Management (BBAY.L) have fallen by more than half from 50.1 million pounds to 17.5 million pounds for the year ending June. The fixed income manager has been hit by an exodus of clients from the most expensive funds and the market sell-off towards the end of 2008. Confidence is returning however, with a reported 15 percent rise to 27.8 billion dollars in assets under management in July and August.

The Independent

SKY FURY OVER OFCOM'S "EXTREME" INTERVENTION

Broadcaster BSkyB (BSY.L) has reacted angrily to Ofcom's proposals to regulate the pay-TV market. The group criticised the regulator's intervention as "extreme and unprecedented". Ofcom aims to force Sky to offer wholesale its premium content, which includes Premier League football, to its market rivals at a reduced price. Sky said the proposals "go beyond" competition law and that Ofcom's financial modelling was not "fit for purpose".

SONGBIRD ESTATES INCREASES STAKE IN CANARY WHARF

Songbird Estates SBDb.L plans to spend 112.5 million pounds on boosting its stake in Canary Wharf, despite having recently come up with terms for a rights issue to rescue it. The real estate firm will buy 54 million shares in Canary Wharf from Germany's Commerzbank, increasing its stake to 69.3 percent. David Pritchard, chairman of Songbird, said the buyout "demonstrates the commitment to the company by a core set of investors". The proceeds of the rights issue, which were earmarked to repay an 880 million pound loan to Citibank, will now also partly finance the buyout.

EXCEPTIONAL CHARGES HIT PROFITS AT DOBBIES

Substantial exceptional charges resulted in an 80 percent drop in profits at Tesco's (TSCO.L) Dobbies Garden Centres for the 18 months to the end of February 2009. Dobbies, acquired by Tesco in 2008, posted pre-tax profits of 658,000 pounds for the period, down from 3.24 million pounds for the 12 months to October 31, 2007. Before exceptionals, Dobbies' pre-tax profits edged slightly higher to 5.3 million pounds on turnover up 47 percent to 122.6 million pounds. Sales were helped by a new store in Southport and the acquisition of Sandyholm Garden Centre.

The Guardian

LLOYDS BOSS LOOKING TO EXIT ASSET PROTECTION SCHEME

The chief executive of Lloyds Banking Group (LLOY.L), Eric Daniels, is looking at ways in which the bank can exit the government's asset protection scheme, even though he has been told that the bank will need to bolster its capital cushion by 25 billion pounds or more if it is to pull out. Daniels has been given a week to find the extra capital and is determined to keep the taxpayers' stake in the bank below 43 per cent. Options being considered by Lloyds include a rights issue for around six billion pounds, the use of complex financial instruments, or conversion of its seven billion pounds of preference shares into mandatory convertible notes. Sales of businesses such as Cheltenham & Gloucester or Scottish Widows may also be on the cards.

NUCLEAR AGENCY SOLD TO BABCOCK AFTER COLLAPSE IN ANNUAL PROFITS

UKAEA, the commercial arm of the United Kingdom Atomic Energy Authority, has been sold to Babcock International (BAB.L) for 50 million pounds. Business Secretary Lord Mandelson said the deal "generates good value for taxpayers". The price obtained, however, is likely to have been affected by pre-tax profits falling from 10.7 million pounds to 3.3 million pounds for the previous 12 months. The UKAEA chairman, Lady Judge, said the sale was in the best long-term interests of the business and the staff. Babcock, which already runs the UK's only nuclear refuelling facilities for the nuclear submarine fleet, beat off competition from Amec (AMEC.L) and Serco (SRP.L)L.

BRITISH LAND SELLS HALF SHARE IN BROADGATE FOR ONE BILLION POUNDS

British Land (BLND.L) is to sell a 50 percent stake in its Broadgate complex to Blackstone in a deal worth one billion pounds that will see the two companies forming a joint venture in which each will own half of the 30-acre City of London site. The deal values Broadgate at 2.13 billion pounds. Chris Grigg, chief executive of British Land, said the Broadgate deal was the climax of his strategy to cut the company's exposure to large single assets. The move cuts British Land's exposure to the financial sector at a time when rents have come under pressure from the recession

Prepared for Reuters by Durrants