PRESS DIGEST - British business press - April 28

The Times

CANCER STRIDE FOR GSK

GlaxoSmithKline (GSK.L) unveiled the results of an 8,000 patient phase-III trial of its Avodart drug at an American Urological Association meeting in Chicago. The world's first preventative treatment for prostate cancer may be on the market in a year after the trial found the drug reduced at-risk patients' chances of developing the disease by nearly a quarter.

O'REILLY SEEKS BUYER FOR STRUGGLING INDEPENDENT

Eleven years after taking control of The Independent newspaper, Sir Anthony O'Reilly is looking to sell. Independent News & Media is looking for investors who might be willing to buy a controlling stake in the newspaper or even buy it outright. Sir Anthony and his son Gavin, who is due to take over as chief executive at Independent News & Media (INME.I) in May, have conceded that the level of losses being incurred by The Independent are unsustainable. The newspaper and its sister Sunday title are expected to lose over ten million pounds this year.

TIDDLER TO WATCH

Synchronica (DAU.L), a provide of software for mobile phones, saw its shares stay unchanged at 3.25 pence despite winning a contract to supply the Dominican Republic unit of a leading Latin American mobile company. House broker Finncap said the deal, thought to be with Digicel, could be the first of several with the client and stuck with its price target of eleven pence.

TEMPUS:

3I (III.L) (hold)

UK Coal (UKC.L) (hold)

Advanced Computer Software (buy)

Daily Telegraph

3I SHARES SLUMP ON RIGHTS FEAR

3i saw its shares fall 14.5 percent to 318 pence on Monday on fears of an imminent rights issue to reduce its 2.1 billion pound debt burden. The private equity group confirmed it is considering a range of financing options including a potential issue of new equity. Analysts at joint house broker JP Morgan Cazenove predicted a 1-for-1 rights issue at 175 pence, which would raise 738 million pounds before costs'.

LIBERTY INTERNATIONAL INSTITUTES 600 MILLION POUNDS CASH CALL

Liberty International (LII.L) began a much-anticipated fund-raising on Monday, saying it would raise gross proceeds of 500 million to 600 million pounds from a share sale. Excluding the Gordon Family Interests, which will subscribe for 30 million pounds of shares at the issue price, the placing is expected to raise 235 million to 285 million pounds, with a similar amount raised through the open offer. Liberty also issued a trading update in which it said it had seen improved UK shopping centre occupancy rates.

NUMBER OF TROUBLED UK COMPANIES SURGES

Research conducted by the insolvency and restructuring group Begbies Traynor reveals that the number of UK companies with 'critical problems' increased by 59 percent in the first quarter of 2009 compared with the same period last year. The figures show that the recession continues unabated with the total number of UK companies showing critical problems having risen to 2,111 from 1,421 a year earlier. The worst hit sector was property with the number of property companies facing critical problems in the first quarter of 2009 being 134 percent higher than last year.

QUESTOR:

Petra Diamonds (hold)

The Independent

NATIONWIDE TO PUT NEW BORROWERS ON HIGHER RATES

In a move which sees the reintroduction of dual pricing at the Nationwide, the building society will from Thursday 30 April charge new customers 3.49 percent above the base rate under its new standard mortgage rate. This means that the building society is scrapping a mortgage promise which insured that customers would pay no more than 2 percent above the bank base rate. Mortgage experts have criticised the change with Savills Private Finance director Melanie Bien saying: 'This penalising of new customers seems out of place for a lender which has usually prided itself on offering the same terms and conditions to new and existing customers.'

BRADFORD & BINGLEY NAMES NEW HEAD

The banking veteran Richard Banks has been appointed as the new managing director at Bradford & Bingley and will be overseeing the wind-down of the nationalised lender. Mr Banks has over 30 years' experience in the industry, having worked at the Midland Bank and Alliance and Leicester ALLL.L, and will be receiving a salary of 250,000 pounds. Abbey bought B&B's savings business last year and the remaining lending arm is being wound down to repay government support.

BODYCOTE WARNS OF INCREASED UNCERTAINTY

Bodycoat, which specialises in heat treatments and metallurgical coatings, has warned of 'greater uncertainty' over demand this year after seeing a further fall in sales during the first three months of 2009. The company has been affected by a collapse in demand from car makers and construction firms and saw sales fall 26 per cent over the three month period.

INVESTMENT COLUMN:

Aviva (AV.L) (hold)

Asos (buy)

SDL (buy)

The Guardian

CREDITORS BACK JJB RESCUE PLAN

JJB Sports managed to stave off administration on Monday after 99 per cent of its unsecured creditors, mainly its landlords, voted for the board's rescue plan. The so-called company voluntary arrangement (CVA) will see 140 stores closed and JJB paying rent monthly instead of quarterly. JJB's chairman, Sir David Jones, said, 'The approval of the CVA is a major step forward in the board's strategy to secure JJB's long-term future by creating a stable financial platform for the revitalisation of out core sports retail business.' 250 shops remain and it is hoped the plan will safeguard 12,000 jobs.

CASH STRAPPED BRITONS CUT SAVINGS AT AVIVA

Aviva warned on Monday of an uncertain year to come after a drop in UK sales of life and pension policies affected otherwise strong figures for the first three months of the year. Life and pension sales dropped 12 percent in the UK in the first quarter compared to the same period last year, but sales soared in the US reflecting a recent trend among U.S. middle-income earners to increase savings. The drop in UK sales helped the company's capital position, which improved by 500 million pounds to 2.5 billion pounds. Aviva's shares rose five percent to 287 pence.

ENERGY SECURITY FEARS WILL HELP US, SAYS UK COAL AFTER 15 MILLION POUND LOSS

UK Coal reported on Monday a loss of 15.6 million pounds but said that it had signed a contract to supply Scottish and Southern Energy (SSE.L) and renewed deals on better terms with E.ON EONG.DE, Drax (DRX.L) and EDF (EDF.PA). Chief executive, John Lloyd, noted that growing concerns about Britain's future energy security are putting coal back on to the centre stage. Mr Lloyd welcomed government plans to support the development of four new coal-fired power plants which will use 'clean coal' technology. UK Coal's revenue grew 19.5 percent to 392.5 million pounds, reflecting higher coal prices.

Prepared for Reuters by Durrants