PRESS DIGEST - British business - April 24

The Times

HAZLITT COULD WALK AWAY FROM GCAP WITH 1.2 MILLION POUNDS

GCap's chief executive, Fru Hazlitt, could leave the group with 1.2 million pounds after only four months in charge. Hazlitt's basic salary increased from 265,000 pounds to 325,000 pounds, according to a document sent to shareholders on Wednesday, when she was appointed chief executive in December. In the wake of the company's pending takeover by Global Radio, the documents revealed Hazlitt would be eligible for a year's basic salary, plus benefits, if her contract became terminated.

GLAXO HINTS AT UK EXODUS IN WARNING OVER TAX CHANGES

The outgoing chief executive of GlaxoSmithKline (GSK.L), Jean-Pierre Garnier, issued a veiled warning to the government over proposed changes to the tax regime on Wednesday. Garnier said: "We value our roots in the UK, but the business environment has to be realistic and favourable so that it doesn't impair our ability to compete globally." Garnier also said that GSK would be looking closely at any proposed changes to the tax system.

TRANSPORT

Arriva (ARI.L) said its outlook for 2008 was positive and the company was confident of "substantial" revenue and earnings growth during the year. The bus and train operator added that first quarter revenues had risen by more than 60 percent, due to the growth in mainland Europe and its new Cross-Country rail franchise.

The Daily Telegraph

TRAFALGAR FOUNDERS NET MILLIONS IN GOLDMAN DEAL

Documents filed at Companies House reveal Goldman Sachs' Petershill fund has purchased 54,113 shares in Trafalgar Asset Managers. The deal comes following several months of talks and Petershill is thought to have paid around 50 million pounds to 100 million pounds for a 30 per cent stake in the business.

BLYK HITS TARGET AS YOUNG SNAP UP FREE MOBILES

Blyk has hit its target of 100,000 users five months ahead of schedule. The advertiser-funded free mobile phone service is being watched closely by the four major mobile networks for its potential to create a generation of consumers unwilling to pay for a phone call. Shaun Gregory, British chief executive, said: "Young people have embraced Blyk because it makes phone bills and contracts a thing of the past."

UNDER-FIRE RBS FACES RATING CUT

On Wednesday, ratings agency Standard & Poor's said the Royal Bank of Scotland (RBS.L) could have its credit rating cut if it does not carry through plans to recapitalise itself. RBS is planning a 12 billion pound rights issue; however, bankers say it will be a test of the will of its chief executive because there is little liquidity in Britain.

The Independent

ROCK SHAREHOLDERS LODGE TWO BILLION POUND COMPENSATION.

Following the nationalisation of Northern RockNRK.L, small shareholders seeking two billion pounds in compensation have applied for a judicial review into the terms of the government's takeover of the lender. The government said it would appoint an independent valuer to determine the value of the business and thus how much its shareholders should receive in compensation.

CATTLES TAPS INVESTORS FOR 200 MILLION POUNDS

Cattles (CTT.L) unveiled plans to tap its shareholders with a 200 million pound rights issue on Wednesday to fund more lending to low-income groups. The home credit specialist also announced its plan to seek a banking licence with a target of taking one billion pounds in deposits by 2010 after attempts to gain it through acquiring rivals foundered.

AEGIS'S CALL TO GROUPE BOLLORE SHAREHOLDERS

Aegis (AEGS.L) is calling on its shareholders to reject the appointment of two new directors put forward by Groupe Bolloré, a major stakeholder, for the fifth time in two years. According to the company, the French investment group's nominees are also directors of Havas, its competitor, and therefore constitute a major breach of good corporate governance.

The Guardian

FORMER BARCLAYS FINANCE CHIEF JOINS FSA TO HELP REGULATE BANKS

The Financial Services Authority has hired Naguib Kheraj, the former finance director of Barclays (BARC.L), to advise on how it could tighten up the regulation of British Banks following the crisis at Northern Rock NRK.L. Mr Kheraj will report directly to the authority's chief executive and work half a day a week on "the design and execution" of a new "supervisory enhancement programme."

EMOTIONAL MCKILLOP BRAVES JIBES OVER RBS SHARE PRICE.

On Wednesday, Sir Tom McKillop launched an emotional defence of his chairmanship of Royal Bank of Scotland (RBS.L) after an attack by a shareholder who criticised the bank's 12 billion pound cash call. McKillop and Fred Goodwin, the chief executive, are under pressure from major investors after admitting that RBS needs to embark on the biggest rights issue in history.

APOLOGETIC OFT PAYS MORRISONS 100,000 POUNDS

After making a series of false allegations against Morrisons (MRW.L), the Office of Fair Trading (OFT) is paying 100,000 pounds in damages. The OFT admitted it was wrong to say that Morrisons had colluded with other supermarkets and dairy producers to push up the price of butter and cheese in 2002 and 2003. The regulator also apologised for saying that Morrisons had previously been warned against anti-competitive behaviour when it hadn't

Prepared for Reuters by Durrants.