PRESS DIGEST - British business - Feb 28

The Times

UNITE CLAIMS "CYBER VICTORY" IN WORKERS' RIGHTS ATTACK

Unite, Britain's largest private sector union, claimed a victory over Marks & Spencer (MKS.L) after "cyber warfare" to attack the retailer on workers' rights. The union said before being blocked by Google, an Internet advertisement listing its grievances had received more than 15,300 hits. Effectively, Unite had been hijacking searches for M&S on Google. Its spokesman said: "The number who viewed it shows how concerned people are about how major UK retailers behave."

MEXX TO CLOSE UK OUTLETS

Mexx is to close its 61 British outlets in yet another sign of growing pressure on high street spending. About 300 jobs at the fashion and accessories chain will be lost as flagship stores are shut in London's Covent Garden and Oxford Street, as well as 38 outlets within House of Fraser stores and 20 concessions at John Lewis outlets.

B&Q REBUILDS ITS IMAGE TO TOP THE ECO-FRIENDLY SHOPPERS' CHART

An exclusive survey for The Times has revealed B&Q (KGF.L) has finally won over the hearts and minds of environmentally conscious consumers. Britain's biggest home improvement chain has been voted top of the class in its sector on green and social issues. The Populus survey shows B&Q has a higher standing among consumers than Marks & Spencer (MKS.L), John Lewis [JLP.UL], Homebase or Ikea in regards to social and environmental issues.

The Daily Telegraph

ROCK PROFITS FLATTERED BY FALCONS LAND DEAL

It has emerged Northern Rock NRK.L bought the grounds of Newcastle Falcons rugby club three weeks before the bank was forced to appeal to the Bank of England for an emergency loan. The transaction, which cost about 15 million pounds, came to light because it was recorded in the accounts of the Falcons, which sold its grounds after struggling to meet mortgage repayments. Northern Rock said: "The process of buying the ground was agreed months ahead of the onset of the global liquidity problems that affected the company. The ground presented an opportunity to buy a good quality, commercial asset."

ORGANIX SALE WILL NET OWNERS HEALTHY WINDFALL

Organix, the company known best for making additive-free baby foods, is being taken over by Swiss company Hero Group. Lizzie Vann founded Organix back in 1992 and campaigned to ban the inclusion of certain additives in children's food. As the public became more aware of the benefits of organic foods, and eating healthier, the company grew dramatically and the deal is likely to supply a multimillion-pound cash windfall to Vann and her husband Mike Thrasher.

CO-FOUNDER OF ANN SUMMERS RETIRES FROM GOLD GROUP

Ralph Gold, the long-term Birmingham City football club shareholder and one of the co-founders of Ann Summers, has stepped down from Gold Group International and disposed of his stake to his brother David. The group's most recent financial results show pre-tax profits at the Ann Summers chain doubled over the year to June 30, 2007. The company is run by David's daughter, who launched the concept of the Ann Summers parties and transformed the retailer into a national chain.

The Independent

OFCOM THREATENS O2 WITH 40 MILLION POUND PENALTY

On Wednesday, Ofcom warned O2 it has just four months to avoid contract penalties for failing to hit coverage targets. The company was the only one of the UK's five licence holders for 3G mobile phone networks that had failed to meet its agreements, and the penalties could cost it 40 million pounds. A spokesman for O2 said the company was fully committed to growing its 3G coverage and confident it will meet targets by June 2008.

ADMINISTRATORS SELL BASE

Two former directors have bought Base, the struggling high street fashion chain, out of administration and saved 70 jobs. The business went into administration on Feb. 7. Frank and Marc Granditer are now the new owners of the chain, which operates in Birmingham, Derby, Manchester and Newcastle, and across the Southeast.

LOGICA REPORTS IT RESILIENCE

LogicaCMG (LOG.L), the IT services group, said 2008 growth would be similar to last year despite an uncertain outlook for the IT market. The company under Andy Green, its new chief executive, is conducting a business review and reported a three percent pro forma rise in full-year revenues to 3.07 billion pounds. Green said although there had been "a few incidences" of slower IT spending, activity levels had been resilient.

The Guardian

RICARDO AIMS TO BE A "GOOD PLAYER" IN GREEN CAR RACE

Ricardo (RCDO.L), the engineering and automotive consultancy group based in Britain, is advancing into the renewable energy market. The company will take advantage of skills developed in the car industry on wind farms in the United States. At the moment, the energy sector is only a small part of Ricardo's business but if the renewable energy market continues to grow the company's chief executive said it would become "a good player in it."

BP HINTS AT SEVEN BILLION DOLLAR SALE OF ALTERNATIVE ENERGY ARM

BP (BP.L) is considering floating or selling part or all of its renewable power operations, which it believes in a value not reflected in the oil group's share price are worth up to 3.5 billion pounds. Tony Hayward, the chief executive, said: "What we will be doing over the course of the year will be looking at ways of realising that value for shareholders because none of us believe that there is very much of that, if anything, in our share price today."

SLUMP IN HBOS PROFITS UNNERVES STOCKMARKET

This year HBOS HBOS.L expects to raise prices for customers due to a fall in profits the year before that was caused by the credit crunch. However, the banking group failed to reassure the City and its shares fell 6.8 percent to 657 pence. It was also the biggest faller in the FTSE 100. Even an increase of 18 percent in the dividend to 48.9 pence did little to stem the slide, and although underlying profits were up three per cent for 2007 on a pre-tax basis they were down four percent.

Prepared for Reuters by Durrants