PRESS DIGEST - British business - June 20

GRANGEMOUTH MAY BE SOLD TO CHINA AS OWNER SEEKS RESPITE FROM.

Grangemouth, one of Britain's largest oil refineries, could be broken up and sold on to Petro-China, in a deal that would cut the 6.5 billion pound debt of Ineos, its embattled owner. Details of the talks emerged as Jim Ratcliffe, Ineos' chairman, secured a waiver from Ineos' lenders in late May and has until July 17 to agree a restructuring plan. Ineos was hit hard by collapsing demands for chemicals last year as the global recession intensified, creating severe strains in its highly leveraged financial structure.

KESA AND DSG HOPE FOR ELECTRICALS SURGE AFTER 'STUNNING' JOHN.

John Lewis has reported a "stunning" rise in the sale of white goods, which analysts said augured well for Kesa (KESA.L), the owner of Comet, and DSG International (DSGI.L), which owns Currys and PC World. John Lewis reported a sales surge of 8.2 per cent year-on-year for electrical and home technology goods, bringing positive news to retailers after bleak figures from the Office for National Statistics revealed a 1.6 per cent year-on-year fall in sales in May. Nevertheless, any recent rise in electrical sales will come too late to save DSG and Kesa from painful profit cuts. painful profit cuts.

MAMAS AND PAPAS REVEALS PLANS TO BUMP UP STORE OPENING.

Mamas & Papas is to step up its store opening programme after reporting a 28 per cent rise in like-for-like sales of its maternity fashion from the beginning of February to the end of June. The retailer and wholesaler of mother and baby products trades from 36 stores across the UK and two outlets in Dublin, and is planning at least four store openings this autumn. David Scacchetti, chief executive, said that "fast-fashion" lines and denim ranges had been among the bestsellers during the period.

The Daily Telegraph

TCHENGUIZ PLANS TWO BILLION POUNDS BOND ISSUE

The property magnate Vincent Tchenguiz is hoping to restructure the debts and build up the capital of his company Consensus Business Group, through offering up for sale between 200 million pounds and 250 million pounds in fixed-income bonds, which are secured against revenue from Tchenguiz's portfolio of ground rents. Annuity funds and large pension funds are likely to take an interest in the 60-year bonds, which will be held against leases with an average length of 125 years. Despite the recession, Tchenguiz continues to buy new properties, including the offices of the insurer Standard Chartered (STAN.L).

WOOD MACKENZIE SALE RAISES 550 MILLION POUNDS

The private equity group Charterhouse Capital Partners has purchased the energy consultancy Wood Mackenzie from its rivals Candover (CDI.L) for 553 million pounds. Charterhouse was more satisfied with the deal than Candover, which had hoped for 650 million pounds from the deal but was forced to accept the offer due to its unfavourable financial situation. Nevertheless, news that Candover was paying its parent company, Candover Investments, 36.2 million pounds from the deal increased the firm's share price 31 pence to 300 pence.

DAIRY CREST OPENS TALKS ON PENSIONS

Dairy Crest (DCG.L) has insured its remaining pension liabilities for 160 million pounds with Legal and General (LGEN.L) and entered talks with its staff over the future of the company's final-salary pension scheme. With its new annuity policy, Dairy Crest intends to protect itself from volatile financial markets and the risk posed by scheme members living longer. "Dairy Crest is committed to improving the fund's financial position, and we are making good progress in this respect," stated Alastair Murrray, the company's finance director.

WHAT THE BROKERS SAY

Halfords (HFD.L) [Buy]

Balfour Beatty (BALF.L) [Buy]

British Airways (BAY.L) [Buy]

Sage(SGE.L) [Hold]

Redrow (RDW.L) [Sell]

Lloyds Banking Group (LLOY.L) [Buy]

Pearson (PSON.L) [Hold]

BHP Billiton (BLT.L) [Hold]

Barclays (BARC.L) [Sell]

The Independent

COX & KINGS PLANS 100 MILLION DOLLAR IPO IN BOMBAY

The luxury travel firm Cox & Kings has announced that it is planning an initial public offering on the Bombay Stock Exchange in September. The firm hopes to raise 100 million dollars by listing a quarter of the company's stock, which will value the entire company at 400 million dollars. This decision comes after Cox's Indian subsidiary became bigger than its parent company; it provided 287,000 holidays for Indians in 2008, compared to 16,500 Britons.

BLUE INC. MULLS FLOAT IN 2010 AS PROFITS ROCKET

The fashion retailer Blue Inc. has reported a strong increase in profits and underlying sales during 2008. The company, which increased like-for-like sales by seven per cent and now owns 80 stores, is also considering a public listing in 2010, which would value the firm at between 60 million pounds and 70 million pounds. "These are exciting times for a young fashion retailer with a clear niche and great product to grow market share," said Steve Cohen, chief executive of Blue Inc.

SALES OF TAIWANESE UNIT FREES UP 800 MILLION DOLLARS FOR PRU

The insurer Prudential (PRU.L) has sold its Taiwanese agency business to China Life Insurance Company. The sale will allow Prudential to shore up its capital surplus, by releasing reserves connected to the agency business. The company stated that it could now add 800 million pounds to the two billion pound Insurance Groups Directive capital surplus it had on May 14. Prudential's PCA Life Assurance Company is now its only unit remaining in Taiwan.

The Guardian

TAYLOR WIMPEY REPORTS 'STABILITY' RETURNING TO THE HOUSING MARKET

Taylor Wimpey (TW.L) has reported 75 per cent growth in its order book since the start of the year, lifting gloom in the property sector. The housebuilder said an increase in the number of customers booking to view homes meant there was less chance of a "severe downside scenario". Rival housebuilders have also reported tentative signs of a rise in activity, despite the Council of Mortgage Lenders recently reporting that mortgage lending fell 0.6 per cent in May and is 70 per cent off its peak of summer 2007.

HALABI PROPERTY FIRM DEFAULTS

Simon Halabi's real estate company has defaulted on 1.15 billion pounds of debt after the value of nine office buildings collapsed by 50 per cent. Halabi's investment vehicle, Buckingham Securities, declined to comment, as did Hatfield Philips, a debt servicing company acting on behalf of the lending banks. The portfolio, including the offices of JP Morgan in the City, was valued at 929 million pounds on Jun 8 - down from 1.8 billion pounds in October 2006.

AUSTRIA SET TO SUE OVER BAE ARMS SALE

Austria is expected to bring corruption charges in connection with a BAE (BAES.L) arms sales, following the emergence of new documents that outline the channelling of secret BAE cash to Count Alfons Mensdorff-Pouilly, an Aristocrat who worked undercover for the arms firm. In one memo, Mensdorff claims Austria was persuaded to buy BAE's Eurofighters in 2002 for 1.7 billion euros thanks to "aggressive incentive payments to low key decision makers". According to the documents, Mensdorff helped promote BAE's interests in Austria, the Czech Republic and Hungary.

Prepared for Reuters by Durrants