PRESS DIGEST - British business - June 25

The Times

BRADFORD & BINGLEY READY TO OPEN BOOKS AFTER COWDERY REVISES OFFER

Mortgage bank Bradford & Bingley BB.L looks poised to agree to open its books to Resolution after a revised 400 million pound bail-out proposal was tabled by Clive Cowdery's investment vehicle. It is understood Rod Kent, chairman of the buy-to-let lender, will convene a board meeting on Wednesday at which the management will grant Resolution identical due diligence terms to those given to TPG, the U.S. buyout firm whose proposal to pay 179 million pounds for a 23 percent stake in B&B currently has the board's backing.

DEBENHAMS IN CALL FOR GREATER VIGILANCE ON CHILD LABOUR

Debenhams (DEB.L) reacted on Tuesday to reports that suppliers of Primark had children working for them by calling for greater vigilance from clothing retailers in monitoring their suppliers. Rob Templeman, chief executive, said: "What's happened with Primark is a lesson for everybody. You have to make sure if you have sequin or embroidery work carried out that it's being done in the factory and not outsourced. It is very, very hard to police but you've got to be vigilant." The BBC's Panorama programme discovered that children in India as young as 11 were carrying out work on Primark clothing.

DUBAI SOVEREIGN WEALTH FUND SHUNS PARTNERS IN 1.4 BILLION POUND RACE FOR TRILLIUM

Dubai's sovereign wealth fund has ruled out making a joint offer for Trillium, the 1.4 billion pound property outsourcing division of Land Securities (LAND.L), and is now expected to table an individual bid. Investment Corporation of Dubai had been the cash backer of an approach for Trillium by property entrepreneur Victor Tchenguiz and aAIM, the property fund manager part-owned by HBOS HBOS.L. But rifts between the parties derailed the plan, with ICD opting to mount the bid on its own, sources said. Final bids are due on Friday.

The Daily Telegraph

BG MAKES 6.7 BILLION POUND PITCH FOR ORIGIN

The British gas giant BG Group (BG.L) has gone hostile in its attempt to buy Origin Energy (ORG.AX), making an off-market 13.8 billion Australian dollar (6.7 billion pound) offer directly to shareholders. BG offered investors in the Australian energy producer and retailer 15.50 Australian dollars a share -- the same price it offered in a friendly proposal that Origin's board ultimately rejected late last month. The bid represented a "full and fair value" offer, said BG chief executive Frank Chapman. Origin issued a statement advising shareholders "that they should take no action in relation to the offer or any documents they receive from BG at this stage".

DEBENHAMS' SUNNY OUTLOOK AIMED AT ENDING RUMOURS

Debenhams (DEB.L) brought forward a trading statement it was due to make next week in an attempt to end speculation about its financial strength, reporting a one percent rise in like-for-like sales in the 10 weeks to June 21. The update was better-than-expected and the shares closed up three percent at 43.5 pence. However a number of analysts downgraded their profit forecasts. In a note to clients, Tony Shiret of Credit Suisse said: "While, ostensibly, trading has provided relief from the market's worst fears, there continues to be a profit forecast slippage and we are making further material profit forecast downgrades."

PUNCH PLAYS DOWN FEARS OVER DEBT

The UK's biggest pub operator Punch Taverns (PUB.L) brought forward its trading statement in an effort to play down fears that it would have to restructure its debt. On Tuesday, its shares suffered their biggest one-day fall since the company's flotation in 2002. The share price fell to 279.25 pence before recovering to 318.25 pence, having opened at 342.5 pence. Giles Thorley, chief executive, blamed the volatility on short-selling and a "concerted effort by a couple of analysts" to misrepresent the company's health. Punch assured investors it "has more than sufficient funds to meet its corporate needs and does not anticipate any refinancing needs before December 2010".

The Independent

KESA DEFERS SHARE BUY-BACK AND PREDICTS "UNSTABLE MARKET"

Kesa Electricals (KESA.L), owner of Comet, saw its shares tumble to their lowest price for five years after it deferred its share buy-back scheme and warned of tough trading conditions. Jean-Noel Labroue, chief executive, said: "We are seeing a continuing decline in consumer confidence and we anticipate further difficult trading conditions ahead." The chairman, David Newlands, said the company would have to weigh the merits of a share buy-back against other opportunities, such as investing in its businesses in Spain and Italy. By the close, the shares had fallen to their lowest level since the electricals group demerged from Kingfisher in 2003, dropping 16.75 pence to 157.75 pence.

WPP SHARES SLIDE AS EXPANSION SLOWS DUE TO GLOBAL UNCERTAINTY

On Tuesday the global advertising giant WPP (WPP.L) reported like-for-like revenue growth of 4.5 percent in the first five months of the year, news that could not prevent a slide in its share price of more than four percent. Compared with the 4.8 percent rate of growth in the company's first quarter, expansion is slowing. Sir Martin Sorrell, the chairman, told shareholders that global economic uncertainty continues to affect growth in Western Europe, and although the German business has improved, Spain continues to be "difficult". Richard Hitchcock, at Numis, said: "There is uncertainty going into 2009, but WPP is well positioned."

TAKEOVER PANEL PREPARES TO STEP IN TO RESOLVE ENODIS BATTLE

The Takeover Panel has said it will intervene if the battle for control of Enodis ENO.L, the kitchen equipment company, is not resolved by 3.30 p.m. on Friday. Enodis is at the centre of a takeover tussle between two U.S. rivals, Illinois Tool Works (ITW.N) and Manitowoc (MTW.N). The Takeover Panel issued a statement saying that after talking to the companies involved it was setting up an auction procedure to "provide an orderly framework for the resolution of this competitive situation".

The Guardian

QATARIS DITCH LONDON STOCK EXCHANGE FOR U.S. RIVAL

Qatar has abandoned its long-standing strategic ties with the London Stock Exchange (LSE.L) to forge an alliance with rival exchange group NYSE Euronext (NYX.N). LSE chairman Chris Gibson-Smith and his chief executive Dame Clara Furse had fostered ties with the oil-rich Gulf state and were in the final stages of a competitive tender process to oversee development of local exchange Doha Securities Management. But instead NYSE secured the deal and will take a 25 percent stake in DSM for 250 million dollars (125 million pounds). The LSE is privately believed to have abandoned hope of further strategic alliances with Qatar.

BAA "SHOULD AXE 5,000 FLIGHTS" TO REDUCE DELAYS AT HEATHROW

Heathrow airport's owner BAA FER.MC should ease congestion at Britain's biggest flight hub by scrapping nearly 5,000 flights a year, according to the business group London First. Baroness Valentine, chief executive of the lobby group for businesses in the capital, said Heathrow had been turned from a "silk purse to a sow's ear", adding: "While proposals for Runway 3 will undeniably address capacity issues in the long term, we need a better Heathrow now." The new runway is not expected to be operational until at least 2020.

DIRECTORS' SALE DELIVERS BLOW FOR DOMINO'S

Shares in Domino's Pizza fell nearly 14 percent on Tuesday as two directors sold a substantial portion of their stakes in the takeaway business. Entrepreneur Nigel Wray sold 9.5 million shares for 180 pence each, raising 17 million pounds and leaving himself with a 16.75 percent holding. Executive chairman Stephen Hemsley sold a million shares at the same price, retaining a 3.74 percent stake. "The sales are because Nigel is diversifying his investments and Stephen is building a house," a spokesman said. The shares tumbled 30 pence to 186 pence.

Prepared for Reuters by Durrants