PRESS DIGEST - Financial Times =2

PRUDENTIAL EYES EQUITABLE LIFE WITH-PROFIT FUND

Prudential (PRU.L) is believed to be among the potential bidders for the seven billion pound with-profit fund of troubled mutual Equitable Life. According to sources familiar with the situation, the Pru has yet to decide whether its interest is in all or parts of the fund, having just taken on 1.7 billion pounds of with-profit annuities from Equitable. Equitable has sent information memoranda to interested parties and has already begun to hold early talks with a range of potential bidders.

FSA FINES AXA'S THINC 900,000 POUNDS

The Axa (AXAF.PA)-owned financial advice company Thinc has been fined 900,000 pounds by the Financial Services Authority for advising on subprime mortgages without taking adequate care. The FSA found that Thinc had failed to obtain adequate financial information for some of its subprime customers, failed to show that their credit histories merited subprime mortgage sales, failed to demonstrate why particular products matched customer needs and failed to consider their affordability. Margaret Cole, FSA director of enforcement, said the fine demonstrated the serious nature of "poor record keeping", though the regulator had not determined the company to be guilty of mis-selling subprime mortgages.

TESCO WINS DOBBIES COURT CASE

Tesco (TSCO.L) has won its legal dispute with Sir Tom Hunter, Scotland's richest man, after he failed to force Dobbies Garden Centres, in which the supermarket group has a majority interest, to abandon a 150 million pound refinancing plan. Sir Tom's investment vehicle, which owns about 29.2 percent of the garden chain, had argued that the plan was against the best interests of the minority shareholders. The Tesco-dominated Dobbies board will now proceed with a share issue that will force Sir Tom to pay 44 million pounds if he wishes to maintain his holding.

BT SEEKING INCREASED LANDLINE USE CHARGES

Ian Livingston, incoming chief executive of BT (BT.L), has signalled the telecom group's determination to charge rivals more money for renting its landlines for the supply of telephone and broadband services. He claimed such a move would receive the backing of regulators as Openreach, the BT subsidiary that provides companies with access to the group's network, was failing to achieve the full 10 percent rate of return on capital employed that is allowed under the current rules.

THOMAS COOK TRAVELS WELL IN ROCKY MARKET

Manny Fontenla-Novoa, chief executive of Thomas Cook (TCG.L), said the travel company was winning a battle with British holidaymakers over late bookings to continental European destinations. On a capacity that is 10 percent lower than 2007, Thomas Cook has 18 percent fewer summer holidays left to sell in the UK than last year, with the average sale price over the last six weeks increasing by 14 percent. Mr. Fontenla-Novoa also said sterling's fall against the euro had failed to make a significant impact on the price of European holidays.

HICKS BULLISH ABOUT LIVERPOOL STADIUM

Tom Hicks, one of Liverpool's US owners, insisted that the Premiership club's plans to move to a new 71,000-seater stadium remained on course and were unrelated to his decision to delay a development project in the USA because of the current credit crunch. But Royal Bank of Scotland (RBS.L) has yet to provide Mr. Hicks and his estranged business partner, George Gillett, with the 300 million pounds needed to build the stadium, although the seed capital of 60 million pounds is in place.

Prepared for Reuters by Durrants