PRESS DIGEST - British business - July 28
The Times
RBS CONSIDERS PULLING OUT OF GOVERNMENT LENDING PLAN
Royal Bank of Scotland (RBS.L) is considering backing out of a one billion pound government scheme to boost lending to cash-starved companies. The Department of Energy and Climate Change proposed that RBS and Lloyds (LLOY.L) should boost lending to stricken wind-farm developers, and stated that they were collaborating with the European Investment Bank to lend the cash. This development was greeted with surprise by the banks, reporting that nothing had yet been confirmed. The EIB said it was only currently doing due diligence on the scheme.
RESOLUTION TO LOOK AT OTHER BID OPTIONS AFTER FRIENDS REJECTS.
Resolution, the investment vehicle of Clive Cowdery, has threatened to drop its bid interest in Friends Provident FP.L, after having its takeover approach rejected for a third time. Resolution said it would consider the "relative attraction" of Friends Provident against other opportunities in the life and pensions sector before deciding on its next move. In its latest approach, Resolution offered 0.82 of its shares for each Friends share, combined with a 500 million pound cash component.
BAY GROUP SECURES DEBT FOR EQUITY RESTRUCTURING
Bay Restaurant Group has agreed terms with Kaupthing and Commerzbank (CBKG.DE) on a debt-for-equity refinancing that will reduce its debt burden by an estimated 100 million pounds to 150 million pounds, allaying fears over its financial future. This will be the second time in 18 months that Bay has undergone a painful restructuring, following a pre-pack administration last year. The group is forecast to deliver earnings before interest, tax, depreciation and amortisation this year of 25 million pounds from turnover of about 175 million pounds.
Tempus
Wolseley (WOS.L) [Those with profits should take them]
Beazley (BEZG.L) [Tuck away]
Dialight (RXO.L) [Buy on weakness]
