PRESS DIGEST - British business -- June 7

The Times

CABLE AND WIRELESS SETS ITSELF UNTIL THE END OF THE MONTH TO...

Cable and Wireless(CW.L) has set itself a deadline of a month to get Thus THUS.L to the negotiating table. On Friday the Thus rejected an initial 165 pence-per-share offer from Cable and Wireless which said that it would either make a firm offer or withdraw by the evening of June 30. Thus made a statement saying that the approach had underestimated the stand-alone value of the company which it said had net assets of 461 million pounds or 252 pence per share. Shares in Thus rose two per cent on the news to 159.25 pence and closed at 158 pence.

LEWIS HAMILTON OVERTAKES TRAINS IN THE HORNBY MARSHALLING

For the first time since the 1930s, Hornby (HRN.L) will generate less than half of its sales from model trains this year. The toy group has seen a surge in sales after the launch of a Lewis Hamilton Formula One version of Scalextric last year. Annual results on Friday showed pre-tax profits rose to nine million pounds up 17 per cent in the year to March 31. Shareholders will receive a full year dividend of 8.5 pence per share, up five per cent.

RELIEF FOR UNDERWRITERS AS RBS RIGHTS ISSUE SUCCEEDS

Royal Bank of Scotland(RBS.L) is set to disclose that it has got its 12 billion pound rescue rights issue away. This will relieve fears that the shares would collapse if the underwriters were left with unsold stock. On Friday, it was understood that investors have taken up at least 90 per cent of their rights by the 11am deadline. The final size of the take up will not be known until Monday. However, its share price although down by 13.5 pence at 245.5 pence, is still above the 200 pence rights issue price.

The Daily Telegraph

FULLER'S WARNS OF EFFECTS AS CREDIT CRISIS HITS

Michael Turner, chairman of Fuller, Smith and Turner, has warned that the British consumer is under enormous pressure. He made the warning as Fuller's reported a four per cent rise in pre-tax profits to 23 million pounds in the year to the end of March. The company saw its share price drop 40 to 545 pence as it revealed revenues had risen two per cent to 181 million pounds. It said that it increased its final dividend by six per cent to 6.9 pence.

REUBEN BROTHERS PLAN TO SWOOP FOR SILVERJET

Property developers David and Simon Reuben are said to be thinking of a last minute bid for Silverjet, the business class-only airline which went into administration last week. The brothers are owed an estimated ten million pounds after investing in the airline in 2007. In total, Silverjet owes 40 million pounds to creditors, of which 17 million pounds is secured against three aircraft.

HAYWARD 'POSITIVE' AFTER TNK-BP MOSCOW MEETING

On Friday, Tony Hayward, chief executive of BP(BP.L) travelled to Moscow to meet rival shareholders in the TNK-BP joint venture. The parties sought to patch up their differences. Viktor Vekselberg, a major TNK-BP shareholder said that he expects the dispute over the venture's strategy to end soon. A source said the parties would meet again in three days.

The Independent

EASYJET OFFERS UPTO 20 PER CENT OFF TWO MILLION SEATS.

EasyJet(EZJ.L) has launched its second round of sales in less than two months. Figures have shown that its planes were less full in May than they were a year ago. The airline is offering a discount of up to 20 per cent off two million seats. May showed a 0.4 per cent decline in its load factor to 83.2 per cent compared to a year earlier. Pressures from oil prices worried investors which saw the price of shares drop 7.7 per cent.

B&B AND ABBEY HIKE RATES AS FUNDING COSTS RISE

Bradford and Bingley BB.L is raising its buy-to-let mortgage rates by 0.55 percentage points. This is to counter the margin squeeze that helped trigger its profit warning on Monday. The company had to reprice its rights issue and sell a stake to a US private equity group. It has raised its mortgage rates on new variable rate offers by 0.44 per cent.

BARCLAYS CAPITAL TO AXE 100 INVESTMENT BANKERS

Barclays Capital(BARC.L) is cutting around 100 investment banking jobs, including more than 20 in leveraged finance, which is one of the businesses worst hit by the credit crunch. On Friday, Barclays Capital held meetings with every member of its UK leveraged finance team. The leveraged finance team has about 90 members, the remaining job cuts will be made elsewhere in investment banking and IT support.

The Guardian

AVIVA TO AXE 1,800 JOBS IN RESTRUCTURING

Over the next two years Aviva(AV.L) will shed 1,800 jobs as part of an overhaul of its general insurance operations. The company will scrap its Norwich Union brand and said it would concentrate on seven towns and cities. A spokesman said that the company would maintain its 52 centres around the country. The switch to seven centres was a result of change in customer demand.

JOHN LEWIS, BELLWETHER OF THE HIGH STREET, REPORTS FOURTH.

On Friday, John Lewis JLP.UL posted its fourth consecutive week of falling sales. Sales at the company were down 4.7 per cent on a year ago. Overall department store sales are up 1.6 per cent in the 18 weeks to May 31. John Lewis will release a new two million pound advertising campaign on Thursday. Signet(SIG.L) it reported a 24 per cent reduction in first quarter points. It said profits before tax fell to 38.6 million dollars in the 13 weeks to May 5.

STAFF GEAR UP FOR STRIKE AT THOMSON AND REUTERS

Staff at Thomson ReutersTRIL.L are closer to strike action at the newly merged newsgroup over planned job cuts. Staff passed a resolution on Friday that could set the wheels in motion for industrial action. Reporters are angry at the plan to cut 270 jobs including a loss of 73 journalists posts. They say that more comment and TV ventures will come at the expense of core news coverage.

Prepared for Reuters by Durrants