PRESS DIGEST - British business - Dec 20

The Times

BIFFA OPENS ITS BOOKS TO PRIVATE EQUITY BIDDERS.

Biffa BIFF.L, the waste management group, has opened its books to the private equity groups Montagu Private Equity and Hg Pooled Management after they increased the headline value of their offer by 20 pence a share and promised to pay the dividend. The revised offer now values the UK's third largest waste company, which was demerged from Severn Trent in 2006, at 1.23 billion pounds. The offer price from the two private equity companies represents a 34.6 percent premium to Biffa's share price on demerger from Severn Trent.

CITY REGULATOR SEEKS CHANGE OF ATTITUDE AS IT TIGHTENS LENDING

The Financial Services Authority has proposed tough new rules to limit lending at some of the UK's biggest banks and building societies, saying banks have prioritised profit over prudence in the way they use the short-term money markets. The FSA's measures, put out to consultation with its members on Wednesday, are designed to avoid the sort of liquidity problems that led to the near collapse of the mortgage bank Northern Rock NRK.L.

NEW YEAR'S RESOLUTION AS COWDERY SELLS STAKE

Clive Cowdery, chairman of Resolution (RSL.L), has put his entire three percent stake in the closed life "zombie" funds group on the block, hoping to raise 145 million pounds. Cowdery, who founded Resolution four years ago, wants to cut his ties with the group ahead of its sale to Pearl Assurance, due to be completed in February. He has earmarked about 20 million pounds from the share sale for a new charity, the Resolution Trust.

The Daily Telegraph

PETRONAS BUYS STAR ENERGY

Star Energy STAR.L, one of the UK's prized gas storage businesses, has been acquired by Malaysia's Petronas (PETR.KL), which already owned 39 percent of the company. Petronas is paying 380 pence per share, valuing the company at 354 million pounds. Petronas began stake-building in Star Energy in 2005 and raised its holding from 29 percent to 39 percent in October amid talk that Italy's Eni was also interested in buying the company.

COMPARISON WEB SITE REBOUNDS SEVEN PERCENT

Shares in the financial comparison Web site Moneysupermarket.com (MONY.L)> rose seven percent or nine pence to 139.5 pence after it said first-half revenue would come in at 160.9 million pounds -- in line with analysts' expectations. The company's shares hit an all-time low this month on fears its business had become the latest victim of the credit crunch.

ABBOT FOUNDER VINDICATED BY 906 MILLION POUND PRIVATE EQUITY SALE

Abbot Group ABTG.L has been sold to the U.S. private equity firm First Reserve for 906 million pounds, netting some 117 million pounds for its founder Alasdair Locke. Abbot put itself up for sale about three months ago after being frustrated at what Locke said was the City's failure to put a sensible price tag on the shares, which were then languishing at about 260 pence. Locke founded Abbot in 1990 to invest in the shipping and offshore industries.

The Guardian

ASTRAZENECA PUSHES ON WITH DISTRIBUTION DEAL

AstraZeneca (AZN.L) has chosen two wholesale partners -- AAH Pharmaceuticals and AllianceBoots' wholesale division Unichem -- to distribute its products to pharmacies, dispensing doctors and hospitals. AstraZeneca decided to go ahead with the controversial new distribution deal, which it first announced in April, despite warnings by the Office of Fair Trading that such a scheme could cost the NHS an extra 500 million pounds a year. The OFT said it would monitor the situation and had not ruled out using the Competition Act to ensure competition between wholesalers.

EX-HEAD OF BRITISH BIOTECH SIGNS GSK DEAL

Santaris Pharma, a Danish bio-pharmaceutical company, which focuses on RNA medicine that aims to interfere with genes to stop a virus replicating, has signed a collaboration deal with GlaxoSmithKline (GSK.L) that could be worth more than 350 million pounds. Keith McCullagh, chief executive and president of Santari Pharma, is better known in Britain for his time as head of British Biotech, which he founded.

REPOSSESSIONS COULD RISE 50 PERCENT TO 45,000, SAY SURVEYORS

The Royal Institution of Chartered Surveyors (RICS) has predicted a leap in home possessions next year by more than half to 45,000 -- more than seven times the number seized in 2004. Simon Rubinsohn, RICS' chief economist, said 2008 would prove a difficult year for the housing market but that the market would be provided with a stable platform by the likely falls in base rates. RICS also believes there is strong pent-up demand from first-time buyers who are waiting on the sidelines ready to pounce if property prices do soften.

The Independent

RANSOM SLIPS OUT OF FAMILY HANDS AFTER "UNACCEPTABLE" PERFORMANCE

Shares in William Ransom & Sons fell two pence to 11 pence on Wednesday as the UK's oldest independent pharmaceutical company announced a fall in its pre-tax profit, from two million pounds in the six months to the end of September 2006 to 600,000 pounds this year. The poor performance made Tim Dye agree to vacate his post of chief executive at the end of January. His departure means it will be the first time in the company's 160 years that its control will leave the hands of the founding family.

PACE TAKES OVER PHILIPS SET-TOP BOX ARM

Pace Micro (PIC.L) has taken over the set-top business of Philips (PHG.AS), the Dutch consumer electronics giant, in a 68 million pound deal that catapults Pace into the third largest set-top box maker in the world. Chief executive of Pace, Neil Gaydon, said taking over its larger, loss-making rival, which ranks as a reverse takeover, would give the combined entity greater buying power and wider geographic reach. Philips will take a 22.5 percent stake in Pace while the UK company will have the right to use the Philips brand for at least three years.

POLYTHENE FIRM WARNS ON PROFITS

British Polythene Industries (BRPI.L) said on Wednesday that its underlying profits for 2007 were likely to be 15 percent lower than last year's, blaming this on patchy demand and increasing cost of raw materials. Its shares fell 2.5 percent on the news.

Prepared for Reuters by Durrants.