PRESS DIGEST - British business - May 5

The Times

REACTORS WILL COST TWICE ESTIMATE, SAYS E.ON CHIEF

Wulf Bernotat, head of the German energy giant E.ON EONG.DE, has said the Government is vastly under-estimating the cost of building a new generation of nuclear plants. The Government's latest estimate of 2.8 billion pounds per plant is way off the mark according to Bernotat, who says the cost per plant could be as high as six billion euros (4.8 billion pounds). "We are talking easily about five billion euros to six billion euros," he said. If his figures are correct, the cost of replacing Britain's 10 nuclear reactors could be as high as 48 billion pounds even before extra costs, such as dealing with nuclear waste, are factored in.

CENTER PARCS PLANS EMERALD ISLE EXPANSION IF WOBURN SITE PAYS DIVIDEND

Center Parcs is planning to expand into Ireland after it opens its new 200 million pound Bedfordshire site in 2010. The leisure group, which offers family activity holidays in some of Britain's biggest forests, has been monitoring Ireland for suitable locations. Martin Dalby, chief executive, said Ireland would be an obvious next step after the opening of the company's fifth site in 2010 effectively completed its geographical spread in mainland Britain. "Five sites is what the UK can support," he said.

DOCKLANDS EXCEL SOLD FOR 178 MILLION POUNDS

London's largest exhibition centre, the ExCel docklands conference centre, is being sold to a property company set up, owned and financed by the government of Abu Dhabi. The Gulf state's firm made a recommended cash bid for the centre's owner, London International Exhibition Centre Holdings. The purchase marks the start of what promises to be an international drive by the Abu Dhabi government to tap into the multimillion-pound conferencing industry through acquisitions of similar-sized venues.

The Daily Telegraph

ANOTHER BOOST FOR CAMERON'S FAMILY

Like-for-like sales at Oka, the up-market interiors group led by David Cameron's mother-in-law Annabel Astor, rose 28 percent in the first quarter of the year. Lady Astor, chief executive, said: "Having developed the Oka retail model of a multi-channel business all the investment and hard work of restructuring last year is now paying off." The firm, thought to be worth between 20 and 30 million pounds, is planning to open "at least" three further shops this year. It recently received a cash injection aimed at driving organic growth from Fleming Family & Partners, the private equity group.

APPRENTICES ANCHORED TO NAVY

British Energy BGY.L has struck a deal with the Royal Navy to send 50 of its apprentices a year to HMS Sultan in Gosport to learn from the Navy's expertise in engineering. David Barber, head of technical training, said: "Ships' propulsion units and generators are like self-contained power stations, and submarines contain their own nuclear reactor . It provides the perfect training ground." British Energy, the UK's largest electricity supplier, runs one coal-fired power station and eight nuclear power stations.

AIREY OWED 2.3 MILLION POUNDS BY FAILED TV COMPANY

Dawn Airey, who became chief executive and chair of Five last week after leaving her job at ITV (ITV.L), is owed 2.3 million pounds by Iostar, which she briefly helmed last year. The failed independent television production company hired Airey in December 2006 and promised a generous remuneration package, understood to have included compensation for stock options she lost when she left BskyB (BSY.L) to join the company. It subsequently fell into administration. Airey is claiming a total of nearly 2.33 million pounds.

The Independent

YAHOO SET TO PLUNGE AFTER MICROSOFT'S 46 BILLION DOLLAR BID IS WITHDRAWN

Microsoft has walked away from discussions with Yahoo after the web-search company dismissed the software giant's improved 46.5 billion dollar (23.6 billion pound) takeover approach. Steve Ballmer, chief executive of Microsoft, said Yahoo's demand for 37 dollars a share made no sense and that the company was pulling its 33 dollar-a-share offer. Analysts predicted a 30 percent fall in Yahoo's share price when the Nasdaq opens on Monday, saying the company had overplayed its hand.

MORTGAGE BROKERS ATTACK LENDERS

Recent attempts by mortgage lenders to reduce the amount of business coming to them through intermediaries have driven Britain's mortgage brokers to launch a war against the high-street banks, complaining to both the Office of Fair Trading and the Financial Services Authority. Brokers have been doing a brisk trade in the current crisis, as borrowers seek specialist help to negotiate the fast-changing mortgage market. But in an effort to tempt customers away from the brokers, high-street banks have begun offering better deals in their branches - creating a dual-priced market. Chris Cummings, director of the Association of Mortgage Intermediaries, said: "[W]e've taken this up with the FSA and have said it's consumers who are losing out on this."

TNS REJECTS WPP

The consumer research company Taylor Nelson Sofres TNS.L has rejected a 230 pence-a-share takeover proposal by WPP (WPP.L), the communications and advertising giant. The approach made on Saturday, valuing TNS at about 950 million pounds, had been unanimously rejected by the board, the company said in a statement on Sunday night. "The board has no hesitation in rejecting this opportunistic proposal as it substantially undervalues the company," said Donald Brydon, the chairman. An earlier unsolicited approach from WPP to reverse its Kantar business into TNS had also been rejected, TNS said.

The Guardian

BELLWAY AND REDROW DISCUSS 1.3 BILLION POUND MERGER

The housebuilders Bellway (BWY.L) and Redrow (RDW.L) are in talks about a possible 1.3 billion pound merger as the massive downturn in the property sector bites. At a time when the industry is under enormous pressure to cut costs, the merger would create the UK's second-biggest housebuilding firm behind Persimmon (PSN.L). Although both companies declined to comment, well-placed sources confirmed that discussions had taken place. One said: "There is nothing remarkably surprising about all this. Everyone is talking to everyone in the sector about consolidation at the moment and although there was an approach from Bellway, there are no ongoing discussions."

ASDA BACKS DOWN OVER PROPOSED CODE OF CONDUCT

Asda has backed down over its opposition to a new code of conduct to ensure that overseas suppliers are given a fair deal by British supermarket chains. Following its recent investigation of the industry, the Competition Commission proposed that all grocery chains with an annual turnover of more than one billion pounds should abide by a new code designed to ensure "fair dealing". Asda had submitted a statement asking for overseas suppliers to be excluded from the proposed code, but now appears to be signing up to the recommendations. "We have . [now] been reassured that it's workable," said an Asda spokesman.

UK START-UP FINDS WAY TO ENCRYPT MOBILE PHONE CALLS

Cellcrypt, which has developed technology that stops people listening into calls from fixed lines or mobiles even if made from abroad, is seeking to raise several million pounds of financing as it closes in on key deals with the British government and multinational companies. The technology encrypts calls that use voice over internet protocol, enabling users to secure their communications by installing specialist software on their mobiles. Claes Bergstedt, head of Cellcrypt, said the security of phone calls was a growing worry for people. "If you access your bank online it's safe but if you use your phone it seems to be fair game," he said. "Why should people treat the call differently?"

Prepared for Reuters by Durrants