PRESS DIGEST - British business - July 8

The Times

RIGHTS ISSUE BY BRADFORD & BINGLEY WILL COST 55 MILLION POUNDS TO RAISE JUST 400 MILLION POUNDS

According to information released to shareholders of Bradford & Bingley BB.L, the buy-to-let lender is embarking on one of the UK's most expensive rights issues as it attempts to raise 400 million pounds at a cost of 55 million pounds. The bank's stock fell 16 percent on Monday to a low of 42 pence, which is 13 pence below the rights issue subscription price. That left sub-underwriting investors, including Standard Life (SL.L) and Legal & General (LGEN.L), who agreed to bail B&B out days ago with a notional 42 million pound loss.

DUDLEY HANGS ON TO TNK-BP JOB, BUT REPRIEVE MAY BE ONLY TEMPORARY

Robert Dudley, chief executive of BP's (BP.L) Russian joint venture TNK-BP, has held on to his job after an extraordinary meeting of TNK-BP management voted 3-2 against his dismissal in response to a demand from a quartet of billionaire Russian investors. The four own 50 percent of the company through their AAR consortium, with BP holding the other half. The Russian side is expected to press once more for Dudley's resignation when TNK-BP International, the parent company, holds its board meeting on Friday.

MYNERS BACKS ROSE LEADERSHIP OF M&S AS INVESTORS PREPARE TO PASS JUDGMENT

The former chairman of Marks & Spencer (MKS.L) has leapt to the defence of current head Sir Stuart Rose before a possible revolt of institutional investors at the retailer's annual meeting on Wednesday. Paul Myners, a close friend of Rose, said there was no one better equipped to revive the retailer, adding: "Stuart is more likely to get it right than anyone else." He said he anticipated a full show of support for Rose from the 2,000 private shareholders due to attend the meeting.

The Daily Telegraph

PUNCH'S THORLEY APPOINTS TYE TO IMPROVE SPIRITS

After dropping more than 60 percent this year, shares in Punch Taverns (PUB.L) climbed 8.75 pence to 279.75 pence on the news that the group is to replace Andrew Knight, head of its managed pubs division. Giles Thorley, chief executive of Punch, is understood to have been disappointed by the Spirit division's performance and has brought in Michael Tye, a former executive at leisure group Whitbread, to turn it around. Tye was managing director of David Lloyd Leisure until its sale last year and ran Whitbread's Premier Inn and Costa Coffee divisions.

PREDATORS MOVE IN FOR CORPORATE DRUG-TESTER CONCATENO

Concateno COT.L, the corporate drug-testing business, is understood to have received several unsolicited approaches from mystery bidders and has appointed investment bank UBS to carry out a strategic review. Since listing on Aim in 2005, the company has become Britain's biggest alcohol- and drug-testing business after a series of acquisitions including Medscreen, Altrix Healthcare and TrichoTech. Concateno's shares rose 3.75 pence on Monday to 135.25 pence, giving it a market valuation of 125.61 million pounds.

GUY HANDS CHARTS NEW PATH FOR EMI

The record label EMI has appointed Elio Leoni-Sceti as chief executive of its recorded music division, completing the major board reshuffle that Guy Hands has orchestrated since his private equity group Terra Firma paid 3.2 billion pounds for the company last summer. Hands will step back from his executive chairman role to become non-executive chairman of EMI. Leoni-Sceti was a brand manager at Proctor & Gamble before a 16-year stint with consumer product group Reckitt Benckiser, where he is currently executive vice-president of the firm's European division.

The Independent

NATIONWIDE STOPS CASH ISA TRANSFERS

Customer service centres at Nationwide Building Society POB.L have been overwhelmed by a surge in new business, leading the company on Monday to temporarily stop accepting transfers into its cash ISAs. The perception that the building society is a relative safe haven for depositors compared to Britain's banks has seen savers flocking to Nationwide in recent months, despite its instant access ISA only paying a maximum rate of five percent -- more than a percentage point below the market's best rates. ISAs will be reopened to transfers once the backlog of applications has been cleared.

ITHACA ENERGY REJECTS RIVAL'S TAKEOVER BID

Ithaca Energy (IAE.V), the Aim-listed North Sea-focused oil and gas company, has rejected an offer from U.S. rival Endeavour International (END.A), saying the proposed bid inadequately valued its assets and prospects. U.S.-listed Endeavour submitted the unsolicited non-binding 325 cent (165 pence) cash and shares offer last month. Rejecting it, Ithaca said the offer was "not in the best interests of shareholders". The shares rose 3.5 percent to 147.5 pence.

INMARSAT CONFIRMS HARBINGER APPROACH

Shares in Inmarsat (ISA.L), the UK satellite group, leapt six percent on Monday after it announced an approach from U.S. hedge fund Harbinger, which already holds a 28.2 percent stake and is the company's major shareholder. The company warned investors that an offer, if it was forthcoming, would be subject to a "lengthy regulatory approval process". Shares in Inmarsat ended up 30 pence at 525 pence.

The Guardian

ARGOS STAFF VOTE TO STRIKE OVER 'BELOW INFLATION' PAY

Argos, the catalogue chain owned by Home Retail Group (HOME.L), faces "severe disruption" after employees at four distribution centres voted in favour of strike action. The Unite union is angry the workers have been offered a "below inflation pay deal" of four percent when last year Home Retail Group's chief executive Terry Duddy received a 58 percent pay rise to 1.7 million pounds and the group's profits rose 16 percent to 423 million pounds. If strike action goes ahead, Argos said it had "contingency plans in place that will minimise the effect on our customers' shopping experience, both in our stores and online".

WATCHDOG'S EPILEPSY DRUG WORRIES HIT GSK SHARES

Shares in GlaxoSmithKline (GSK.L) fell 1.9 percent in New York to 45.87 dollars on the news that U.S. officials are seeking to impose a "black box" warning on epilepsy drugs, including the British company's Lamictal. Under the proposals, companies would be forced to label epilepsy medicines with a warning that they pose a risk of suicidal thoughts and behaviour. "We are going to ask for a boxed warning on these drugs," said an FDA spokeswoman. GSK's shares appeared unaffected on the London market, closing up seven pence at 11.80 pounds.

DEMAND REMAINS HIGH FOR EASYJET FLIGHTS

EasyJet (EZJ.L) reported strong demand for budget flights last month, saying the public's appetite for trips on low-cost airlines remains undiminished despite the economic downturn. The number of travellers flying with EasyJet increased by 19.5 percent in June to 4.1 million, with the proportion of seats sold per flight up slightly on the same period last year, at 86.9 percent.

Prepared for Reuters by Durrants