PRESS DIGEST - British business -

Mail on Sunday

NEW ROW LOOMING FOR M&S

The Local Authority Pension Fund Forum has urged Marks & Spencer's(MKS.L) shareholders to call for the appointment of an independent chairman by next July. Manifest, which advises clients including pension funds and sovereign wealth funds on how to vote at annual meetings, said the extension of Stuart Rose's role to include chairman alongside his chief executive position "highlighted to many shareholders a failure of the company's nomination process". Voting for the resolution would be a safer means for investors to register their dissatisfaction rather than voting against Rose's re-election, which could damage the company.

LLOYDS PLEDGES MORE HELP FOR TROUBLED FIRMS

Lloyds Banking Group(LLOY.L) has acted in anticipation of a sharp rise in the number of struggling companies on its loan book by more than trebling the size of its corporate restructuring division. Lloyds will increase the number of restructuring specialists from 250 to 800 by the end of the year, with veteran troubleshooter Duncan Parkes heading the department. The unit is likely to get plenty of business from HBOS'HBOS.L integrated finance division, acquired as part of the merger between Lloyds TSB and HBOS last January, which issued debt in return for equity stakes increasing the bank's exposure to risk and also potential reward.

INTENSIVE CARE FOR FAIRLINE AS IT HITS A SQUALL

Fairline Boats is negotiating a refinancing with its banks in a bid to survive a difficult trading period. The luxury yacht and powerboat manufacturer has been placed into Royal Bank of Scotland's(RBS.L) global restructuring group to address its 30 million pound debt. Cavendish Corporate Finance was hired by Fairline last November to sell the business for a reported 100 million pounds, but the process was scrapped due to a lack of interest. 3i(III.L), which invested 40 million pounds in Fairline when it backed a management buyout in June 2005, insisted the company was operationally sound, with plans to bring two new models to market this year and three in 2010.

The Sunday Times

BRIT AND CHAUCER IN 800 MILLION POUND TALKS TO CREATE GIANT.

Chaucer Holdings is under pressure from its shareholders to accept a proposed all-share deal with larger rival Brit Insurance(BRE.L). No formal offer has yet been made, but it is expected that a nil-premium merger deal could emerge by the end of this week. The combined group would become one of the largest in the Lloyd's insurance market, with a capitalisation to rival those of Hiscox(HSX.L), Catlin(CGL.L) and Amlin(AML.L). Rebel investors, including Aberforth Partners(ASL.L), are thought to have been lobbying Chaucer chairman Martin Gilbert over the past few days.

EVERYTHING IN THE GARDEN IS LOVELY FOR WHITE STUFF

Lifestyle retailer White Stuff has announced record profits for the 2009 financial year. The company reported a 42 per cent rise in underlying profits to 13.3 million pounds in the year to April 26 2009, with total sales up 34 per cent to 58.4 million pounds and home shopping sales up 70 per cent. Profit margins were up 1.3 per cent. The retailer plans to open 30 stores over the next three years. Chief executive Sally Bailey said that the company has no plans to revisit a stake sale before a strategic review two years hence.

DIY GIANT FOCUS AIMS TO STRIKE DEAL WITH CREDITORS

Bill Grimsey, chief executive of Focus, Britain's third-largest DIY chain, has instructed a restructuring team from KPMG to prepare a company voluntary arrangement as he looks to secure the future of the stricken group. The company, owned by US private equity firm Cerberus, is understood to be ahead of budgeted sales for the past 12 months after widescale cost-cutting measures which included shedding 700 jobs.

SHAREWATCH

Carnival Corporation(CCL.L) [Outperformed the FTSE All-share index by 26 per cent]

The Sunday Telegraph

SEATWAVE SCORES AS T20 CRICKET DRIVES SALES

John Cohen, chief executive of Seatwave, said that the ticket trading firm had experienced a massive spike in sales recently, caused mainly by cricket fans buying up tickets for the Twenty20 World Cup final to be held at Lord's on Sunday. The company has also seen a 211 per cent rise in demand for tickets for this year's Wimbledon tennis tournament, compared with 2007. Cohen said that the increase in sales, of which Seatwave takes a 25 per cent cut, will enable the newly-started company to turn a profit later this year or early next year.

TIMMS TO EXIT AS NEW OWNER SHAKES UP ESPORTA

Esporta chief executive, Glenn Timms, is said to be in talks with the health-club group regarding his position following the appointment of Richard Segal, the former boss of PartyGaming(PRTY.L), as the company's new chief executive. Segal's appointment follows the transfer of Esporta out of administration and into the ownership of the French Bank Societe Generale(SOGN.PA). Timms is not expected to stay with the health club group. A spokesman for Esporta said: "We are in discussions with Glenn about his future role in the business," but declined to give any further details.

VODAFONE DEFIES CALL FOR PROMPT PAYMENT

Vodafone(VOD.L) is said to be defying calls from Lord Mandelson to pay companies earlier and has told its suppliers that it is changing its payment terms to cut costs by one billion pounds. The mobile phone group said that the change will standardise its payment terms across the world and will not necessarily result in extended payment periods for all suppliers. Vodafone recently cut 1,800 jobs as pre-tax profits fell 53 per cent to 4.1 billion pounds for the year to the end of March. A spokesman for the company said: "Vodafone always tries to improve operating efficiency. We are working with suppliers to ensure they are able to work through any changes."

Independent on Sunday

CENTRICA PREPARED TO GO HOSTILE IF VENTURE REJECTS BID

Centrica(CNA.L) is willing to attempt a hostile takeover of the oil and gas group Venture ProductionsVPC.L if it does not accept the 850 pence per share bid made by the British Gas owner. Centrica has been given until July 13 by the Takeover Panel to make a full bid for Venture, which is insisting on a 950 pence per share offer. As owner of more than one fifth of the company, a hostile takeover has a chance of success. If it goes ahead, the deciding factor is most likely to be the decision of Legal & General(LGEN.L), another large stakeholder in Venture.

FOR SALE: SELF-STORAGE FIRM SPACE MAKER, COMPLETE WITH.

PriceWaterhouseCoopers has put the self-storage firm Space Maker up for sale. Offers so far have been between 12 million and 31 million pounds. Space Maker's board and the company's private equity backers are thought to be dissatisfied with these bids, but may be forced to accept them due to the firm's debt burden of over 45 million pounds. A source close to the matter predicts that the final offer is likely to be around 25 million pounds.

DSG TO POST 80 PER CENT PROFIT COLLAPSE

DSG(DSGI.L), the electrical group that owns the retailers Currys and PC World, is expected to record a drop in profits of almost 80 per cent to 42 million pounds this week. A fall in consumer spending and troubles affecting the company's suppliers has reduced the impact of a recent 311 million pound rights issue. The news is likely to increase the pressure on the group's chief executive John Browett. The shares fell by six pence over the week, closing at 23 pence on Friday.

The Observer

BA MAY DITCH OPENSKIES AS TRANSATLANTIC FLIGHTS DIVE

In a move that would reflect ongoing decline in business passengers on transatlantic routes, British Airways(BAY.L) is exploring the option of scrapping its OpenSkies subsidiary, which operates flights from Amsterdam and Paris to the US. Only a year ago, BA acquired French airline L'Avion as part of plans to increase flights between America and France. The move to ditch the operation would thus represent a dramatic volte face for British Airways. "Every part of our business is under review in these difficult and challenging times," said a spokesman for the airline.

BRAMDEAN SET TO OUST HORLICK

It is expected that so called "supermum" Nicola Horlick will be axed as fund manager of Bramdean Alternatives, the listed fund manager, this week. Horlick, who has been commended for combining a high-flying City career with bringing up a large family, is due to meet the new board on Tuesday. The development comes as Bramdean embarks on liquidating the fund after a boardroom coup led by Vincent Tchenguiz, who holds a 28 per cent stake. If the new board, headed by Jonathan Carr, decides to force Horlick to leave, she may be entitled to an eight million pound termination fee.

RECORD PROFIT WATER FIRM RAISES PRICES

Thames Water, the largest water company in Britain, will reveal record profits on Monday of more than 610 million pounds. The group also intends to raise household bills by 17 per cent above inflation for the next five years. "Decades of under-investment have kept our bills artificially low," says Thames Water chief executive David Owens. The steepest single increase will come next year when bills will soar by 10.5 per cent. According to the company's five-year business plan, smaller rises will be implemented over each subsequent year.

Prepared for Reuters by Durrants