PRESS DIGEST - British business - June 27

The Times

BA BOARD JOIN IN WALSH'S UNPAID MONTH BUT CLING TO FREE FLIGHTS

The board of British Airways (BAY.L) has agreed to work for free during the month of July, following the example set by chief executive Willie Walsh. The move is one of a number of cost-cutting measures at the struggling airline, which has seen around 7,000 of its staff agree to some form of pay cut. BA has, however, defended its decision to continue offering free flights as a perk to members of the board.

ANOTHER BOSS IN GOODWIN'S RBS TEAM LEAVES BANK

Peter Nathanial, a senior member of the team that oversaw Royal Bank of Scotland's (RBS.L) disastrous 2007 takeover of ABN Amro, has left the bank. Nathanial steps down from his position as head of risk -- his departure marking nearly a complete overhaul of the bank's senior management since 2007. RBS led the 49 billion pound consortium bid for ABN Amro but many of the ABN assets that RBS acquired proved to be impaired, leading to tens of billions of pounds in bad debts having to be written off.

HOMEBASE OWNER IS LATEST IN THE LINE OF FIRE

The introduction of a new executive bonus scheme at Home Retail Group (HOME.L) has resulted in the Association of British Insurers issuing a "red top" alert on the Argos and Homebase owner. The alert signals the highest level of concern about governance at the group and is the latest in a number challenges to companies' remuneration policies by City shareholders. Home Retail Group has defended the move, saying: "We consulted extensively with shareholders and we are confident that the policy represents an appropriate set of proposals."

The Daily Telegraph

MG ROVER REPORT READY AFTER 15.9 MILLION POUND INQUIRY

It has emerged that the official report into the collapse of MG Rover has been forwarded to the government. Business minister Ian Lucas told MPs the report was handed to the Department for Business on June 11. Officials and ministers have yet to set a firm date for the publication of the report. Lucas also revealed that the total cost of the inquiry is 15.9 million pounds, including costs and disbursements.

EASYJET LOSES GATWICK JUDICIAL REVIEW

EasyJet (EZJ.L) has lost its judicial review against the Civil Aviation Authority over the 50 percent increase in charges at Gatwick Airport. The airline's claim that the regulator held biased talks with airport operator BAA before sanctioning the increase was dismissed by the High Court on Friday. The judge conceded he found EasyJet's complaint understandable, but added that it was "not unfair" that the High Court should intervene. CAA economic regulator Harry Bush said he was "pleased with the outcome". BAA said on Friday that although net debt would climb to 8.7 billion pounds this year, it would still comply with covenants.

PERMIRA APPROACHES LIFE INSURER JUST RETIREMENT WITH 208 MILLION POUNDS BID

Private equity group Permira has approached Just Retirement JR.L with a bid valuing the life insurer at 208 million pounds. The development highlights the increasing amount of buy-out activity in the financial services market, where low asset values offer private equity firms the potential for high returns. The bid values the group, whose shares closed at 70 pence on Friday, at half its original market capitalisation. Langholm Capital, which has a 52.3 percent stake in the life insurer, has committed to accepting an offer of 76 pence or more per share in cash.

The Independent

JOHN LEWIS REPORTS ITS BEST WEEK OF THE YEAR

John Lewis [JLP.UL] recorded its best sales performance of its financial year so far last week, with sales up 2.2 percent to 46.5 million pounds. Howard Archer, chief UK economist at HIS Global Insight, expressed caution despite the positive results, which were "clearly lifted significantly by purchases for Fathers' Day".

INDEPENDENT NEWS & MEDIA EXTENDS STANDSTILL

Independent News & Media (INME.I) has extended a financial standstill agreement it secured with a group of its bondholders in May. The publisher of The Independent said the agreement would now continue until July 24. IN&M said the move would allow constructive talks between all stakeholders regarding the company's financial restructuring.

BP TO HIVE OFF ITS GREEK BUSINESS FOR 306 MILLION POUNDS

BP (BP.L) is selling its Greek fuels division to Hellenic Petroleum (HEPr.AT) for 359 million euros. The sale includes 1,200 sites across the country and is expected to be completed towards the end of 2009. The move is part of BP's three billion pound divestment plan. This week also saw the oil giant agree the sale of its Indonesian unit to Pertamina, as well as the appointment of Ericsson chief executive Carl-Henric Svanberg as its new chairman.

The Guardian

BSKYB FURIOUS AFTER MEDIA REFEREE LAYS OUT PLANS TO FORCE DOWN SPORTS AND FILM PRICES

Under new proposals from Ofcom, intended to increase competition in the pay-TV market, BSkyB (BSY.L) may be forced to reduce the rates it charges other companies to carry its premium sports and movie channels by up to 30 percent. The media regulator's two-year investigation of the market also proposes examining the terms of Sky's deal with the Premier League ahead of the next rights auction in 2012. Sky responded by saying: "Forcing Sky to sell its channels for less than their true value is a subsidy for companies that have shown no appetite for investment in programmes."

NETWORK RAIL BOSSES DEFEND SIX-FIGURE BONUSES

Network Rail has defended its decision to pay senior executives six-figure bonuses, in defiance of political pressure. The group's remuneration committee has been criticised by both unions and the Office of Rail Regulation, which is powerless to intervene but suggested that the decision would not be backed by stakeholders such as Virgin Trains and East Midland Trains. Both are often frustrated by engineering failures on the west coast mainline.

PIDGLEY NAMES SUCCESSOR AT BERKELEY GROUP

Berkeley Group (BKGH.L) founder and managing director Tony Pidgley has named the group's finance director Rob Perrins as his successor. Pidgley, who is to step down from the role after 33 years, will remain at the property developer as chairman. The news was announced as the firm posted a profit of 120 million pounds for the year to the end of April , a 38 percent fall on the previous year.

Prepared for Reuters by Durrants