PRESS DIGEST - British business - Dec 22
The Times
TIDDLER TO WATCH
Griffin Mining (GFM.L), the China-focused miner which last month cautioned that sales and profits for 2007 would miss market expectations, has gained 9.25 pence to 84.5 pence after Seymour Pierce rated the stock a "buy". Griffin, which issued the profit warning after suspending zinc sales, has since resumed sales of the metal following price increases in China.
RUMOUR OF THE DAY
The social networking Web site Bebo is thought to have found a bank to help it to raise funds. The move follows reports that social networking Web sites are expected to attract only 156 million pounds ($309 million) in advertising revenue in Europe next year. There are currently no plans to put Bebo up for sale.
DEAL OF THE DAY
Alan Benzie, a former senior partner at KPMG who was appointed a non-executive director of JJB Sports (JJB.L) in August, has acquired 40,000 shares in the sports retailer. The acquisition means he now owns 0.02 percent of the company, which has a market capitalisation of 302 million pounds. JJB shares fell to a five-year low on Tuesday, closing at 123.75 pence.
The Daily Telegraph
TAKEOVER TALK SEES TRADERS POUR INTO PUBS
Punch Taverns (PUB.L) has risen eight pence to 767 pence on the back of speculation that the pub group might merge or enter a joint property deal with rival Mitchells & Butlers (MAB.L). Brisk trading saw three times the average daily volume of shares in the two companies exchanging hands. However, when similar rumours circulated last month, Punch stated that "it is not in discussions with Mitchells & Butlers or with any of Mitchells & Butlers' shareholders regarding any offer or merger."
SHOPS FACE "CRITICAL WEEKEND"
New figures from the Office of National Statistics have revealed that price-cutting by high street fashion chains last month led to the biggest monthly fall in the value of clothing and shoe sales since October 2005. The figures showed that although total sales volumes increased by 0.4 percent between October and November, the net value of sales fell by 0.7 percent compared with a year earlier. The high level of discounting does not bode well for the crucial Christmas trading period, although it is expected that more than one million shoppers will visit London's Oxford, Regent and Bond streets on Saturday and Sunday.
UMBRO NETS PROFIT ALERT AFTER EURO 2008 FAILURE
England kit supplier Umbro UMB.L has issued a massive profit warning, saying it is still wrangling with retailers over the level of stock returns they will accept following England's failure to qualify for the Euro 2008 football championship. Analysts quickly slashed their full year pre-tax profit forecasts for the company from 21 million pounds to just five million pounds, on Friday. In an unrelated development, Mike Ashley, the colourful billionaire behind Sports Direct (SPD.L) who until Friday held a 29.9 percent stake in Umbro, has sold 20 percent of his stake to Nike Vapor, a division of the American sports giant, Nike (NKE.N) for 56.1 million pounds. The sale brings Nike's proposed 285 million pound takeover of Umbro a step closer.
The Guardian
CHRISTMAS COMES EARLY FOR SABMILLER
Shares in brewing giant SABMiller (SAB.L) have gained 90 pence to 14.06 pounds on news that it has signed a definitive agreement with American rival Molson Coors (TAP.N) to place their US and Puerto Rican operations into a joint venture. The deal, first proposed in October, should be completed by the middle of next year.
THE IT CROWD
Shares in software and outsourcing firms were in demand on Friday following the 95 pence-per-share agreed takeover bid for Northgate Information Solutions NIS.L by the US private equity group KKR. Analysts at Numis said the deal would have positive implications for other local government software companies such as Civica CIV.L, Anite (AIE.L) and IBS because it opened up the possibility of consolidation in the sector. Shares in Northgate rose 28.25 pence to 92 pence, Civica 16.75 pence to 183 pence.
FINANCIAL MARKETS' PLIGHT THWARTS CARPETRIGHT
Lord Harris has been forced to drop his 850 million pound bid for Carpetright (CATVU.L), the company he founded in 1988, because of the current credit crunch. The consortium for the management buyout, which was led by Harris and other members of the senior Carpetright management, said that since its proposal in early October, the credit markets had "deteriorated significantly with a consequent adverse impact on the availability of funding and cost of capital". Carpetright has suffered tough market conditions in Britain this year, posting a 1.4 percent fall in like-for-like sales for the year to end of April.
The Independent
STEAD & SIMPSON UP FOR SALE AGAIN
Stead & Simpson, the shoe retailer which dates back to 1834, is in line for its second new owner in two years after being put up for sale. The business, which has issued a prospectus for the 350-store chain to possible buyers, last changed hands in 2005 following a 50 million pound management buy-out. The company has faced tough trading recently.
SIR MENZIES JOINS SAINTS BOARD
Sir Menzies Campbell is joining the board of the Scottish American Investment Company (SCAM.L), one of Scotland's oldest investment trusts. The former Liberal Democrat leader joins the board of the 450 million pound company, which is commonly known as Saints, with immediate effect. Other members of the board include Shell's(RDSa.L) deputy chairman, Lord Kerr of Kinlochard, and Sir Brian Ivory, the trust's chairman.
EQUITABLE LIFE HOISTS FINAL "FOR SALE" SIGN
Equitable Life, the insurer which nearly went bust in 2000, plans to put its remaining business up for sale next year in a move that would finally mark the end of the mutual. The company's advisers are compiling information for potential bidders to buy all or parts of its seven billion pound with-profits fund. On the basis of the offers, it will then evaluate whether to sell the fund or run it off itself.
Prepared for Reuters by Durrants. ($1=.5043 British Pound)
