PRESS DIGEST - British business - April 22

The Times

DAILY SPORT'S MOVE UPMARKET ATTRACTS FEW BETS IN THE CITY

On Monday, the Daily Sport paid a high price for its plans to move upmarket when a warning of weakening advertising caused shares in Sport Media Group (SPMG.L) to fall by more than a quarter. Its chief executive, Andrew Fickling, blamed the "deteriorating macroeconomic climate" for results that prompted executives to adopt "a more cautious approach to the full-year forecasts."

SOMEONE'S PUT THEIR FOOT IN IT AT BOOTS

A drug addict stole a back-up tape with details of Boots' customers to whom the company had sold dental insurance, causing the pharmacist to become the latest company to be embarrassed by the loss of confidential information. Boots is blaming Medisure which is blaming the security firm that was transporting the tape.

TIDDLER TO WATCH

Shares in Luminar Group(LMR.L) rose six pence to 323.25 pence following its reaction to reports of a management buyout by saying it had no such plans "at this time," which seemed to indicate that negotiations had got nowhere. Altium Securities also stressed predators would only move once it had invested more in its clubs and expenditure tails off around 2010.

The Daily Telegraph

FKI READY TO ACCEPT MELROSE BID

Melrose, the engineering group, is poised to seal its 500 million pound takeover of FKI FKI.L. The industrial conglomerate's board was due to recommend Melrose's offer on Monday night after the company spent the last two weeks raising funds for a formal 84 pence-a-share offer. Melrose is thought to have raised roughly 750 million pounds to finance FKI's 350 million pound debts, provide sufficient working capital for the company going forward and pay for some of the cash element of the offer.

CHINA "WILL TARGET UK BRAND NAMES"

According to accountants Grant Thornton, over the next couple of years China is likely to buy some brand-name British companies as it takes advantage of an unexpected downturn to spend foreign currency reserves. The likeliest targets for Chinese sovereign wealth funds or private equity groups backed by Chinese equity are thought to include the big names in minerals and fossil fuels in Britain.

UK SOFTWARE STARS CONDUCT MISSION TO WOO SILICON VALLEY

Twenty internet software firms, including established sites like WAYN, have joined forces to take part in the first co-ordinated attempt to show American investors the strength of Britain's emerging social media technology industry. One of the organisers of the Webmission08 trip, Oli Barrett, said: "When start-up companies try to do it on their own it can be a lonely experience and it can be difficult to gain access. As a group we have got fantastic access."

The Independent

BLOOMING PETS AT HOME SHELVES PLANS.

Pets at Home, the pet care retailer, was forced to shelve plans for a stock market flotation on Monday because of turmoil in the money markets. The announcement came despite strong growth in the Cheshire-based business. The chain saw its pre-tax profits increase by 56 per cent to 30.9 million pounds in the year to 27 March, but said it did not believe the time was right for getting the best possible price for the business.

SICK MARKETS WILL HIT PERFORMANCE OF ASSET MANAGER BLUEBAY

Cazenove analysts are wary about the performance fees BlueBay(BBAY.L) is likely to generate, and cut 2009 performance fee estimates by 18 per cent. Cazenove said: "We have reduced our overall performance estimates for (full-year 2008) by three per cent to reflect the negative tone of the outlook." In a statement on Monday, BlueBay's chief executive, Hugh Willis, mentioned market conditions continue "to be difficult and to limit the firm's ability to generate performance fees in the short term."

BEST BUY BID BANTER BUOYS CARPHONE AND DSG

On Monday, Carphone Warehouse(CPW.L) was the focus of bid speculation due to the prospect of a 400 pence-per-share offer from Best Buy. Vodafone(VOD.L) was also said to be considering a bid for the company, and shares in Carphone reached an intra-day high of 259.25 pence, up 7.75 pence. However, analysts remained unconvinced, and Christian Koefoed-Nielsen, an analyst at Panmure Gordon, believed Best Buy "would rather go after someone like DSG International, not Carphone Warehouse."

The Guardian

CO-OP CLASHES WITH ORGANIC GROUP OVER CO2 AND FOOD MILES

The Co-operative group and the Soil Association were at loggerheads over the weight given to "food miles" in a labelling system designed to encourage the purchase of low-carbon products. The social reporting manager at the Co-op, Laura Vickery, wrote in a letter to the director of the Soil Association: "We consider that the focus on air freight is a very poor proxy for the environmental impact of a product, and also does not adequately deal with other social and/or economic consequences of disincentivising air freight, particularly for producers in the developing world."

AIRPORT OPERATOR SHAKES UP BOARD AFTER HEATHROW FIASCOS

Collin Matthews, the new BAA chief executive, has moved swiftly to tighten his grip on Heathrow airport's management. Mr Matthews said: "We need to be more focused on our operations and this change will allow that to happen, as well as giving our other airports the freedom to develop faster." Although Terminal 5 is now running smoothly, the airport is now facing the challenge of upgrading other terminals as well as the ongoing debate over the need for a third runway.

PARCEL FIRM POISONOUS TO RENTOKIL PROFITS

Rentokil(RTO.L) has admitted that its parcel-delivery service is in a worse shape than previously indicated, and has issued its third profit warning in less than five months. On Tuesday, the pest control and services group said that City Link would make a "significant full-year loss" in an unscheduled trading statement. The news comes just two months after the group claimed the division would break even this year.

Prepared for Reuters by Durrants.