PRESS DIGEST - British business - May 9

The Times

WATCHDOG IN TALKS WITH REBEL M&S INVESTORS OVER ROSE'S ROLE

Pirc, the corporate governance watchdog, revealed it was talking with a number of Marks & Spencer (MKS.L) investors, in negotiations which could see a showdown with the retailer over Sir Stuart Rose's controversial promotion to executive chairman. A draft resolution, leaked to the media on Thursday, read: "This resolution is intended to provide a safe outlet for investors wishing to send a strong signal to Marks & Spencer about the value of good governance."

TRINITY ADVERTS DOWN

The publisher of the Daily Mirror and a string of regional titles, Trinity Mirror (TNI.L), has reported further deterioration in local newspaper advertising. On a like-for-like basis, advertising revenues at regional titles including The Birmingham Post and the Liverpool Echo decreased by 5.2 percent in March and April. The fall was worse than the 4.6 percent reported in January and February.

OFCOM FINES ITV

ITV (ITV.L) has been fined a record 5.7 million pounds by Ofcom for repeatedly misleading viewers over the conduct of phone-ins on its flagship programmes. The regulator said ITV had allowed viewers to enter phone-in competitions that they had little or no chance of winning.

The Daily Telegraph

CARPHONE DEAL IGNITES BUYOUT TALK

The 1.1 billion pound move by BestBuy, the U.S. electricals giant, to take a 50 percent stake in Carphone Warehouse's (CPW.L) retail business could lead to a buyout. Charles Dunstone, Carphone's founder and chief executive, denied any immediate plans to sell out and focus on the company's broadband business. City analysts, however, were not wholly convinced. Mark James, Collins Stewart analyst, wrote in a note to clients: "The deconsolidation by Carphone Warehouse will, I think, be seen as a route to eventual exit."

MCCARTHY & STONE AXES JOBS AS CREDIT CRISIS HITS ELDERLY

McCarthy & Stone, the retirement home company, is planning to make up to 10 percent of its workforce redundant. The move comes because its elderly customers are unable to sell their existing homes and buy a new one in the wake of the credit crisis. The job cuts demonstrate the housing crisis has spread to all parts of the housing chain.

FRANCE'S EDF SET TO MAKE NINE BILLION POUND BID FOR BRITISH ENERGY

EDF (EDF.PA), the French power giant, is expected to table a takeover offer for British Energy BGY.L on Friday in a move that the UK government hopes will spark development of a new generation of nuclear power stations. On Thursday night, EDF and its advisers were said to be finalising details of an all cash bid pitched at between 9.2 billion pounds and 10.2 billion pounds. The government hoped to maximise value through a takeover battle, but on Thursday there were doubts whether other interested parties were intending to place bids.

The Independent

INM EXPANDS PRINT WORKS IN N.IRELAND

The publisher of The Independent, Independent News & Media (INME.I), is investing another 7.9 million pounds in its Newry print centre in Northern Ireland. The group's chief executive, Sir Anthony O'Reilly, unveiled the expansion on Thursday at the U.S./Northern Ireland Investment Conference at Stormont. He called for more fiscal autonomy in Northern Ireland to attract investment by creating a "level playing field" on corporation tax with the Republic.

MANITOWOC LEFT OUT IN THE COLD

Enodis ENO.L withdrew its backing for the offer from Manitowoc (MTW.N) and threw its weight behind a one billion pound bid from Illinois Tool Works (ITW.N). Enodis released a statement with ITW on Thursday saying they were "pleased to announce that agreement has been reached on the terms of a recommended cash offer" after the Illinois group had launched a 282 pence per share offer.

HEDGE FUND SRM LEADS LEGAL FIGHT OVER ROCK DEAL

SRM has joined forces with 150,000 small investors to mount legal action against the government over the nationalisation of Northern Rock (NRKx.L). The fund and the UK Shareholders Association have requested a judicial review of the government's compensation scheme for shareholders. They say the move by the government has been rigged to leave investors with nothing. A Treasury spokesman said: "The Treasury's firm view is that the statutory framework for the assessment of compensation, including the assumptions which the valuer will apply, represents a fair and reasonable basis for determining any compensation payable to former shareholders."

The Guardian

ROYAL MAIL PENSION DEFICIT DOUBLES TO SEVEN BILLION POUNDS

When a new review of Royal Mail [GBPO.UL] starts this autumn, the company expects to be told the hole in its pension fund has reached seven billion pounds -- twice the amount of the current assessment. The news comes as the group admitted it was handling three million fewer letters a day than last year, and has run up 200 million pounds of losses from its parcels business and regulated letters.

NEXT SALES DROP NINE PERCENT WITH LITTLE RESPITE AHEAD

Next has said the warm weather of recent days had tempted some reluctant fashion shoppers back, but still reported a nine percent decline in sales. The shares rocketed to a two-month high on relief that the results were not worse, and closed up 74 pence at 13.02 pounds. In a first-quarter update, Next also said total sales from high-street outlets and the Directory mail-order business were down 3.9 percent on the same period last year.

VIRGIN IN TALKS WITH BSKYB OVER CABLE SPAT

According to Neil Berkett, Virgin's chief executive, BSkyB (BSY.L) and Virgin Media (VMED.O) have held talks to resolve the dispute that led the satellite broadcaster to withdraw its basic channels from the cable TV platform last year. Berkett believes the change in management at both firms had allowed talks to begin. He said: "There is no emotional legacy around the position and I have a lot of respect for Jeremy as a leader, so who knows?"

Prepared for Reuters by Durrants