PRESS DIGEST - British business - Feb 27

The Times

FORTRESS TIPPED AS LIKELY BIDDER FOR MAPELEY

On Tuesday, Fortress Investment Group (FIG.N) emerged as the most likely bidder for Mapeley MAY.L following an admission from the commercial property company that it had received a takeover approach. An unnamed senior trader said: "Fortress floated Mapeley at 23 pounds and they would want something nearer to that if anyone else was interested." Most quoted property companies are now trading at discounts of 25 to 40 percent of their net asset values, and are likely to attract other similar approaches.

SELECT RETAIL CHAIN GOES INTO ADMINISTRATION

The women's fashion chain Select Retail has collapsed into administration and in a matter of weeks more than 800 staff could face losing their jobs. Select's collapse joins Dolcis, The Works, Base and Elvi in a list of administrations to have hit the retail sector since Christmas. Experts believe more could follow in coming weeks, with the March rent review expected to prove a tipping point for vulnerable groups.

SCOTTISH TRIO TO MAKE OFFER FOR THREE GCAP XFM RADIO STATIONS

Three Scottish businessmen are making a joint offer for GCap's GCAP.L Xfm radio stations in Manchester, Scotland and South Wales. The bidders include entrepreneurs John Quinn and Gordon Beattie and Adam Findlay, son of the chairman of Virgin Radio owner SMG. This year the stations are expected to make a combined loss of 800,000 pounds, and it is understood that any buyer will need to have the industry knowledge and financial power to make them profitable.

The Daily Telegraph

CGT FORCES LONMIN CHIEFS TO SELL SHARES

The chairman of Lonmin (LMI.L), Sir John Craven, has sold two-thirds of his shares in the platinum miner. The leading City figure wants to avoid the controversial 80 percent rise in capital gains tax, and the miner is believed to be the first FTSE 100 company to make such an announcement. In a statement, the company said the shares were sold "in the light of the 80 percent increase in the rate of capital gains tax". Tax advisors are expecting a surge of similar director sales before April 6 when the tax levied on their shares rises from 10 percent to 18 percent.

COMMENT: HAYWARD MUST STEER BP AWAY FROM PAST ERRORS

On Wednesday, Tony Hayward will reveal BP's (BP.L) future direction. By leaving the sad legacy of the past few years truly behind, he should use the strategy briefing to stamp his authority on the company. If investors feel a man of action is at the helm, then they are sure to give Hayward the time he needs to improve BP's lot. However, if he doesn't act on BP, its takeover hungry rivals surely will.

HOTELS SUPPORT THIRD RUNWAY

Destination London Heathrow, an association of 16 Heathrow hotels, is the latest business group to back a third runway at Britain's premier airport. The association told how European cities were taking away business and said: "Historically we would only ever bid against central London and each other. Cities such as Paris, Amsterdam, Frankfurt and now Munich were not even on the radar for conference agents." Catering bookings fell by 25 percent in the last five years, and if the third runway isn't built then it is feared this trend will continue.

The Independent

LONDON SCOTTISH ABANDONS LENDING

On Tuesday, London Scottish Bank LSB.L said it was to concentrate on debt collection and get out of the lending business after it revealed a 12.7 million pound full-year loss. The company said: "2008 is expected to be a year of change as the group restructures its lending divisions to refocus on Robinson Way. Financial performance is likely to be subdued until the group has completed its refocusing." London Scottish employs over 2,000 staff, but declined to comment on possible job cuts due to its restructuring plan.

EGG DEFENDS CARD DECISION TO MP

Ian Kerr, the chief executive of Egg, the credit card company owned by Citigroup (C.N), has defended the decision to cancel more than 160,000 cards this month. Kerr told Labour MP Nigel Griffiths, a former consumer affairs minister, that the company did not single out customers who chose to clear their balances every month.

MPS INVESTIGATE INHERITED ESTATES

The Commons Treasury Select Committee has launched an inquiry into life insurers' inherited estates as Aviva (AV.L) said it had agreed an early March timetable for Clare Spottiswoode, its policyholder advocate, to respond to its offer. Aviva, Britain's biggest insurer, is currently discussing matters with Spottiswoode regarding how much it should pay to policyholders to release the funds.

The Guardian

FIRST GREAT WESTERN FORCED TO MAKE 29 MILLION POUND CHANGES

First Great Western, Britain's worst-performing rail service, is on the verge of being sacked by the government after overshooting train cancellation limits and misleading the public over service standards. Ruth Kelly, the transport secretary, ordered a list of changes and if FGW fails to comply it "could lead to the government terminating First Great Western's franchise". Kelly ordered FGW to increase passenger compensation pay, buy more carriages and hire more staff.

CARR STEPS DOWN FROM MITCHELLS & BUTLERS AFTER LOSSES.

By the end of May, Roger Carr will step down as chairman of Mitchells & Butlers (MAB.L) after presiding over disastrous financial bets that effectively wiped out two year's profits. Carr will stand down following the conclusion of a strategic review at the group. The pubs operator has run up realised and potential losses of about 442 million pounds, and one analyst said: "For a company that is great operationally, it's lost its way strategically."

Prepared for Reuters by Durrants