PRESS DIGEST - British business - Feb 13
The Times
RYANAIR TO CLOSE TICKETS WEBSITE AFTER OFT WARNING
Ryanair(RYA.I) is to close its website for three days next week because it has missed a deadline set by the Office of Fair Trading to remove misleading prices from the site. The shutdown will allow the budget airline to revamp the website and meet the OFT's rules for including taxes and other charges within headline fares. The shutdown may cost Ryanair 20 million pounds in lost revenue. Concern over the airline's strategy has given cause for Deutsche Bank to issue a warning of a possible 'business model failure'
TIDDLER TO WATCH
Serica Energy reported it has received high tender offers for gas which is to be pumped from its Indonesian Kambuna well from December. The company also reported it has increased its share in another Indonesian exploration project from 53 per cent to 78 per cent. Share closed at 81.75 pence, up 12 .75 pence.
DEAL OF THE DAY
Six directors of Dairy Crest(DCG.L) have spent 115,600 pounds buying shares in the company at 542.31 pence each. The company reported rising sales in January but warned of a challenging outlook. Dairy Crest is one of several companies sharing a 116 million pound fine from the Office of Fair Trading over dairy price fixing. Shares rose 19.5 pence to 560 pence.
The Daily Telegraph
UNEASE OVER M&S DISCOUNT GIVEAWAY
In an attempt to boost sales in the final weeks of its financial year, Marks & Spencer(MKS.L) has distributed 800,000 'discount vouchers' offering 20 per cent off food, clothing and homewares this coming weekend. The unprecedented move has seen over 70,000 M&S staff and thousands of M&S pensioners receive a dozen vouchers each to distribute to 'families and friends'. The giveaway is likely to spark more questions about trading at M&S and increase City concerns that the retailer is sitting on large amounts of unsold stock. M&S insists the promotion has been planned for some time.
CASHCADE FLUSH ON 100 MILLION POUND FLOAT PROSPECT
Online bingo operator Cashcade is considering a possible float or trade sale that could value the business at 100 million pounds. Cashcade, which owns several internet sites including Foxybingo.com and Thinkbingo.com, has yet to appoint any advisers for a sale but admits to recent takeover approaches. Cashcade was set up by directors Simon Collins and Patrick Southon in 2000 and the management owns about 32 per cent of the business, Independent News & Media is the second biggest shareholder.
NUMBERS ARE UP FOR 888.COM'S REVENUE
888.com has posted a 36 per cent rise in net gaming revenue for the last 12 months to 214 million dollars. The online poker and casino operator is to soft-launch a sports betting site in six countries including the UK and Spain. Casino revenue rose 33 per cent to 118 million dollars boosted by a strong fourth quarter, and the contribution from poker was up 18 per cent to 81 million dollars. Shares closed at 139.5 pence, up 8 pence.
The Guardian
SCOTTISH & NEWCASTLE CALLS TIME ON ITS LARGEST BREWERY
Scottish & NewcastleSCTN.L has confirmed it is to close its largest brewery with the loss of 362 jobs. The closure of the brewery near Reading is likely to be one of the last major corporate decisions the company makes before it is acquired by Carlsberg and Heineken and leaves S&N operating only three UK breweries. The Reading brewery produces 600 million litres of Kronenbourg and Fosters. 300 litres of this is to be outsourced to Molson Coors with the remaining capacity spread across existing S&N sites. The brewery will close in two years' time and it is thought the site may fetch 100 million pounds.
T-MOBILE DROPS GOOGLE FROM INTERNET DEAL
T-Mobile dropped Google on Tuesday in favour of Yahoo as its provider of mobile internet search technology. Google will lose more than 90 million mobile users of its search engine and the switch will be particularly galling for Nikesh Arora, Google's European boss, as he used to work for T-Mobile. T-Mobile's chief executive Hamid Akhavan said the company has decided to use Yahoo as its mobile search technology is better than anything offered by Google. T-Mobile wants to make internet search results more relevant to the fact that consumers are using a mobile phone and the new Yahoo oneSearch portal enables this.
PHORM GUIDE
It is understood the Aim-listed online advertising technology company Phorm is close to a deal with Virgin Media, BT(BT.L) and Talk Talk. Phorm has developed technology that allows internet service providers to track what their customers do online and use that information to target advertisements more effectively. Phorm's shares closed at 26.75 pounds, up 330 pence.
The Independent
MICRO FOCUS TWEAKS SECOND-HALF FIGURES
Micro Focus(MCRO.L) has said after a strong third quarter it expects its second-half revenue to be slightly better than expected. The software group also said it is on track for double-digit organic growth for the full year. Micro Focus, which helps companies make the most out of older computer systems, said second-half revenues should 'marginally exceed' first-half revenues of 108.9 million pounds. Shares closed at 221.75 pence.
BALFOUR PAYS 350 MILLION DOLLARS FOR US ARMY HOUSES
Balfour Beatty(BALF.L) has bought the US military housing company GMH for 350 million dollars. The purchase will strengthen Balfour's position in the US public-private partnership market. GMH, which funds and manages homes for army, navy and air force personnel, has 800 staff and 15 deals covering 42 bases and 30,000 homes. A further 14 projects are in the pipeline and involve the building and maintenance of 14,000 homes.
OMNIFONE BEATS RIVALS WITH MOBILE
Omnifone has launched MusicStation Max, a mobile phone with unlimited music download services direct to the handset. The British company says it has agreements in place to provide songs from a number of big music labels, including EMI. Korean giant LG Electronics is the first manufacturer to sign up to produce the phone and the 3G MusicStation Max handsets are due to be on the market by June.
Prepared for Reuters by Durrants.
