PRESS DIGEST - British business - June 17
The Times
DE LA RUE CASHES IN ON ITS SYSTEMS UNIT SALE TO CARLYLE
The British banknote printer, De La Rue (DLAR.L), has agreed to sell its cash counting business to Carlyle Group, the American private equity firm, for 360 million pounds. De La Rue said that 360 million was comfortably within its estimates for the company. After the completion of the deal, the company intends to return 460 million pounds to shareholders, equivalent to 305 pence per share. The figure includes the 160 million pounds return of capital, which it announced alongside its full year results on May 22.
GAMING MACHINE COMPANY RECIEVES FINANCIAL NUDGE
A group of financial institutions led by Credit Suisse (CSGN.VX) and BlueBay Asset Management (BBAY.L) is to take over Danoptra, the fruit machines-to-leisure club operator formally known as Kunick. The consortium announced 85 million pounds of funding to refinance its estimated 80 million pounds of debt and further develop the business. Danoptra made a loss of 19.9 million pounds in the 12 months to September 30.
TALKS RESUME TO END STRIKE BY DRIVERS OF SHELL FUELS
Talks aimed at avoiding another strike will resume today in an attempt to agree a pay deal for 641 tanker drivers contracted to distribute fuel for Shell (RDSa.L). The drivers employed by Hoyer UK and Suckling Transport will return to work from 6am, however the Unite union says that without a pay agreement there could be another four-day strike on Friday. There are renewed fears that if the dispute continues then other drivers contracted for other oil companies may join the industrial action.
The Daily Telegraph
PRIMARK AXES THREE SUPPLIERS FOR USING CHILD LABOUR
Primark has ditched three suppliers in southern India after it was discovered that they were sub-contracting work to child labourers. Primark is owned by Associated British Foods (ABF.L) and it sources 700 million pounds of clothing from India each year. The effected garments represented just 0.04 per cent of its worldwide sourcing. The suppliers in question are based in Tirupur, the Tamil Nadu manufacturing hub.
MAJESTIC LIFTED BY EXODUS FROM BEER
Wine retailer Majestic (MJW.L) has posted a 3.4 per cent increase in pre-tax profits. It is the latest sign that consumers continue to ditch beer for wine. The UK company said pre-tax profits hit 16.7 million pounds on the back of a 2.4 per cent increase in like-for-like sales in the year to the end of March. Tim How, chief executive, said that the increase in sales had come through price increases rather than sales volume. Majestic's share price rose 17 to 217 pence.
BLUEBAY WARNS ON PROFITS AFTER FEES CUT
BlueBay Asset Management (BBAY.L) issued a profits warning on Monday after agreeing performance fee cuts with investors in return for a lock-in at its troubled hedge fund. It said that pre-tax profit for the year to June 30, would be lower than the market expectations but would still be around 51.6 million pounds. BlueBay shares fell 14 per cent to 238 pence.
The Independent
POUNDSTRETCHER CHAIN IN TAKEOVER TALKS
Instore INST.L, the retailer which owns the Poundstretcher chain could be bought by one of its main investors. The company said on Monday that it had begun talks with a third party. Instore declined to name the interested party but it is believed to be Aziz Tayub. News of a takeover offer for Instore sent its shares soaring. Its stock closed on Monday up 3.43 pence to 8.88 pence an increase on the day of almost 63 per cent.
SURVEILLENCE FEARS FORCE NORWICH TO SCRAP 'PAY AS YOU DRIVE' CAR.
Norwich Union has withdrawn one of its flagship car insurance policies less than two years after its launch. The "Pay As You Drive" policy used satellite technology to track journeys via a black box. Norwich Union said that too few customers had signed up for the policy. The Big Brother element of the service put off a lot of policyholders.
Prepared for Reuters by Durrants
