PRESS DIGEST - Financial Times - June 9

UK WEALTH CREATORS BEAR BIGGER TAX BURDEN

A government study has found that large British companies pay more in corporate taxes on the wealth they create than their competitors in France, Germany and Switzerland. The annual value-added scoreboard shows the 185 top wealth-creating companies in the UK handed over in taxes 12 per cent of the added value they created last year. French and Swiss companies in the league table paid eight per cent, and German companies among the 750 top European wealth-creators paid only six per cent of their value-added in tax.

PENSION SCHEME 'SCANDAL IN THE MAKING'

Ned Cazalet, the independent life assurance analyst, warns the government-sponsored national system for pension saving is a "mis-selling scandal in the making." In a report to be published on Monday, Mr Cazalet will say that for many lower paid workers the overall potential returns on contributions made under personal pension accounts could be "hugely negative" largely due to the impact of means-testing. Cazalet said: "There are a significant number [of people] who are going to sustain losses worse than the worst losing streak at the Bellagio Casino."

BUSINESS ANGRY AT EU WORK TIME OPT-OUT DRAFT

A fresh row between ministers and business was brewing as it emerged that an attempt to secure Britain's exemption from European Union maximum working hours rules may involve new concessions on flexible working. Diplomats are cautiously hopeful of winning agreement on a permanent UK exemption from the 48-hour limit on the working week. Optimism rose after Britain last month made concessions on a related issue when it agreed to give up to 1.4 million temporary and agency workers full pay after three months on the job.

US-STYLE REFORMS PLANNED FOR FRAUD PROBES

Under US-style proposed reforms due to be unveiled in a report this week, companies and executives suspected of fraud would face shorter investigations and a higher chance of cutting deals. The plans have already triggered reforms at the Serious Fraud Office that investigators and lawyers say could turn into the biggest in the organisation's 20-year history. The report is considered a key test of the credibility of the SFO's role in tackling fraud.

SURVEY REVEALS CONSUMER GLOOM

The British Retail Consortium/Nielsen survey shows that consumer confidence has fallen to its lowest level in the survey's five year history. More than half of respondents cited inflation as their main worry, and 60 per cent described job prospects as either "not so good" or "bad" while 57 per cent said their finances were likely to drop into one of these two categories over the coming year. Stephen Robertson, BRC director-general, said: "With one in five people saying they have no spare cash . customers are telling us they are cutting back on spending on all sorts of non-essentials."

CHELSEA REACH FOR STARS WITH HOLLYWOOD AGENCY DEAL

A deal struck between Chelsea football club and Creative Artists Agency could see Frank Lampard and Michael Ballack rubbing shoulders with Tom Cruise and George Clooney. CAA represents many of Hollywood's leading names, and also has a sports division, CAA Sports, which has struck a commercial agreement to represent Chelsea. The chief executive of Chelsea, Peter Kenyon, told how CAA Sports was a "market leader" and the deal covers branding, tours and stadium development.

WILLIS TO BUY US RIVAL FOR 2.1 BILLION DOLLARS

Insurance broker Willis Group Holdings (WSH.N) is to acquire Hilb Rogal & Hobbs HRH.N, a smaller rival in the US, for one billion pounds in cash and shares. The move will expand Willis' presence in North America, a region which contributes 45 per cent to overall revenues, up from 30 per cent in 2007. The deal is also the biggest the industry has seen for a decade, and could kick off a wave of consolidation in the sector, which has seen revenues hurt by softer rates on personal and casualty insurance.

CATHOLIC PUTS FAITH IN CHELSEA

Catholic Building Society is set to be taken over by Chelsea Building Society, in a move that could trigger windfalls for Catholic Building Society members. Catholic and Chelsea both said their boards had agreed to the merger; however, because of the differences in size between the building societies, it is effectively a take over. Chelsea's chairman, Trevor Harrison, said: "We are looking forward to finalising the terms of the transaction with the Catholic and to welcoming the Catholic's members into the Chelsea family in due course."

ALLIANCE BOOTS TO REPORT PROFIT INCREASE

Alliance Boots [AB.UL] is expected to report a large increase in profit on Tuesday. Bankers believe the health and beauty group, that last year became the subject of Europe's biggest leveraged buy-out, will announce a pre-tax profit of 770 million pounds at the end of a successful year for the company. If it manages this then it will have exceeded the expectations of analysts for the year to March, even against the current backdrop of tighter consumer spending.

RED BEE FLIES OFF WITH ONE MILLION POUND CHINESE TV OLYMPIC DEAL

Red Bee Media has been selected as the production partner for Chinese state television's coverage of this summer's Beijing Olympics. The move is the latest sign of the former BBC Broadcast unit's global expansion under private equity ownership. The contract will see the group design the title sequences and information graphics for an event that will be seen by almost all of the country's 1.3 billion-strong population. Andy Bryant, director of Red Bee's London-based creative business, said: "In terms of a symbol of where we have got to as a company, this really is a landmark win."

Prepared for Reuters by Durrants.