PRESS DIGEST - British business - June 25

The Times

NOVUS NEAR DEBT SWAP

Novus Leisure, the company that operates the Tiger Tiger bar chain, is close to securing a debt-for-equity swap that would see Barclays (BARC.L) and Royal Bank of Scotland (RBS.L) become major shareholders. The move would leave the group's management and private equity owner Cognetas with minority stakes. Barclays Ventures is to provide 20 million pounds for the expansion.

TOPSHOP FINDS TALENT AS DEAL LINKS GREEN AND COWELL

Sir Phillip Green is planning to use the celebrities created by Simon Cowell's media empire to promote his fashion lines through the creation of a new international television business. Sources close to Green and Cowell said the new vehicle would give the latter the greater control of his earnings and enable him to roll out his popular TV show formats across the globe. Green would be able to gain merchandising opportunities and access to new media that would allow him to reach more potential customers. Industry sources said the new enterprise could mirror the successful Disney model.

BA STAFF PLAN

British Airways (BAY.L) will find out on Thursday how many of its staff signed up to work for free as part of the airline's cost-cutting drive. BA has also offered other options including long and short-term unpaid leave and switching to part-time work. The group is seeking to save money after soaring fuel prices and falling demand for first and business class travel resulted in a 401 million pound loss in the year to the end of March.

The Daily Telegraph

MANAGEMENT RAISES WOGEN BUYOUT OFFER

The management team hoping to buy out minority investors in Wogen (WGN.L) has won the support of an independent committee set up to review the bid after it raised its offer by almost 14 percent. The metals trader said on Wednesday the team led by executive director Damian Brousse had forwarded an offer of 41 pence a share -- up from 36 pence. Management already controls around 61 percent of the group and the new bid values the company at around 18.4 million pounds.

FORTIS EYES TESCO INSURANCE PRODUCTS

Fortis Insurance [FORTI.UL] is believed to be close to securing a deal to provide motor and household products for Tesco's (TSCO.L) financial services arm. The retailer has said it has been reviewing some of its long-standing general insurance arrangements. A deal between the two would hit Royal Bank of Scotland (RBS.L), which currently provides the products for Tesco. Market sources estimate Tesco's insurance business takes in around 600 million pounds worth of insurance premiums each year and that a deal could create up to 1,000 jobs in the UK.

SHARES IN IPHONE CHIP DESIGNER LEAP

Shares in Imagination Technologies (IMG.L) soared 34 percent on Wednesday after it announced a 45 percent increase in pre-tax profits. Hossein Yassaie, chief executive of the group that designs chips for the iPhone, attributed the company's "outstanding" growth to growing demand for its technology. Imagination's clients believe its technology is crucial to their future and are therefore increasing their stakes in the business. Intel (INTC.O) has increased its holding to 16 percent, while Apple (AAPL.O) has a 3.6 percent stake. An unknown buyer has bought an additional 9.8 million shares, pushing the shares up 39.25 pence to 153.75 pence.

The Independent

KING REVEALS DEPTH OF RIFT WITH THE TREASURY

The extent of the rift between the Bank of England and the Treasury was revealed on Wednesday when, appearing before the Treasury Select Committee, Bank governor Mervyn King revealed that he had neither seen nor been consulted on the government's White Paper on banking regulation. King also expressed frustration at the fact the Bank had not been given the tools to fulfil the statutory responsibility for financial stability given to it in this year's Banking Act.

SURVEY: RBS IS THE WORLD'S WORST BANK

An annual survey of 1000 financial institutions, conducted by The Banker magazine, ranks RBS (RBS.L) as the world's worst performing bank. The survey, which will be published next month, also names HBOS (HAL_pa.L) as the sixth worst bank. Referring to RBS, The Banker editor Brian Caplen says: "It expanded too fast and made the ABN Amro acquisition at the top of the market. Very late in the bull market the group got into complicated instruments backed by sub-prime mortgages, and the combination proved very damaging."

XSTRATA TURNS UP HEAT ON ANGLO AMERICAN

Anglo-Swiss mining group Xstrata (XTA.L) has published details of its proposed takeover of Anglo American (AAL.L), placing further pressure on its rival to enter negotiations. Xstrata set out cost savings of one billion dollars and moved to reassure the South African government that the proposed tie-up would not add to already high levels of unemployment. Chief executive Mick Davis said: "We remain convinced of the undeniable logic for a merger of equals between Anglo American and Xstrata."

The Guardian

RAIL BOSS POURS SCORN ON POLITICAL MASTERS

Stagecoach (SGC.L) chief executive Brian Souter has launched a blistering attack on the Department for Transport, labelling the government department "dysfunctional" and "chaotic". Souter went on to say his views were shared by other train operators. Analysts have suggested recessionary pressures and a squeeze on public finances are putting a strain on the relationship between the DfT and rail operators. Souter listed five contractual disputes that could result in the DfT owing Stagecoach as much as 200 million pounds.

WONDER OF WOOLLIES REBORN ON THE WORLD WIDE WEB

Collapsed retail chain Woolworths re-emerges as an online retailer on Thursday, offering half a million products including traditional pick'n'mix -- re-branded as click'n'mix. The brand is now part of the Barclay brothers' Shop Direct empire after the reclusive duo acquired the Woolworths brand name from administrators Deloitte. Woolworth's product range will be spread across four categories -- children's wear, toys, entertainment and party goods.

NORTHERN ROCK TOUGHER ON LENDING

A report by the influential Commons public accounts committee reveals that state-controlled Northern Rock (NRKx.L) is applying stricter criteria for mortgage borrowing, despite the government urging banks to resume normal levels of lending. The report also criticises the Treasury's "flat-footed and ill prepared" approach to the bank's rescue, citing the fact that there were warnings it was in trouble three years earlier.

Prepared for Reuters by Durrants