PRESS DIGEST - British business - March 4

The Times

C&C DIRECTORS PUT THEIR ONE MILLION POUNDS OF BONUSES IN WORKERS' FUND

John Dunsmore, chief executive of C&C Group (GCC.I), and two directors of Magners Irish Cider have relinquished combined bonuses worth up to 1.2 million euros and added the money to a bonus pool for the group's workers. Dunsmore, chief operating officer Stephen Glancey and strategy director Kenny Nieson have invested 1.5 million euros of their own money in a share-based incentive scheme that will pay out several times that amount if the share price reaches 2.50 euros. Analysts said the directors had waived this year's bonus in order to avoid a staff revolt following a pay freeze and 120 redundancies.

FULLER SHOWS OFF BUSINESS TALENT AS IMPRESARIO BEHIND AMERICAN IDOL GIVES 75 MILLION DOLLAR PERFORMANCE

Simon Fuller, the man behind "American Idol", last year boosted operating income generated by his 19 Entertainment group to 75.1 million dollars. The performance is likely to be followed by Fuller taking day-to-day control of listed parent company CKX. Fuller said: "I'm pleased that 19 provides over 70 percent of the revenue and nearly 80 million dollars in profit for the company." Fuller said he hoped to expand the business by developing television formats, which includes a programme based on the Now That's What I Call Music brand.

LUKE JOHNSON RAISES 75 MILLION POUNDS

Risk Capital Partners, the private equity group established by Luke Johnson, chairman of Channel 4, has raised a 75 million pounds fund. Johnson, who with partner Ben Redmond has put in 25 million pounds, said the fund-raising had not been easy, having taken a year to reach 75 million pounds. Nevertheless, Johnson expressed excitement about opportunities arising from the credit crunch with "two or three times as many opportunities" as normal. Risk last week paid around 500,000 pounds for patisseries chain Baker & Spice.

The Daily Telegraph

PREMIER LINES UP INVESTMENT FROM WARBURG PINCUS

Premier Foods (PFD.L) is preparing an investment that could be worth hundreds of million of pounds from private equity group Warburg Pincus as it moves to strengthen its balance sheet. The group is planning to announce a heavily discounted 400 million pound capital-raising as it presents its full-year figures on Thursday, with the share offering expected to be priced at around 20 pence. The group is to hold a final round of talks with institutional investors on Wednesday and Warburg Pincus is expected to take a 10 to 12 percent holding in the group after the capital-raising. Such a move would represent the first of a large number of private investment in public equity (PIPE) deals led by buyout groups.

BRIXTON DROPS CHIEF EXECUTIVE AS SHARE PRICE FALLS

Tim Wheeler, chief executive of industrial property landlord Brixton BXTN.L, has been dropped by the company's board after its market value plunged over doubts regarding a potential fund-raising. Wheeler presided over the company as its share price fell by 79 percent in the first two months of 2009. Property investors believe the group has been too slow in making moves to strengthen its balance sheet amid falling asset values. Brixton's board said it had decided to change the chief executive to "ensure that it has the most appropriate leadership in place for the long-term future of the company". Wheeler will be replaced immediately by Peter Dawson, who was previously the company's investment director.

TOP FUND MANAGER TO LEAVE NEW STAR

Time Steer, a top-rated fund manger at New Star, has resigned from the asset management group and will leave on the completion of the 115 million pound takeover of the company by Henderson. Steer's exit will be a major loss for Henderson as he was one of a handful of New Star managers to have maintained his strong investment performance over the past two years. Steer, who will join Artemis, said he was sad to be leaving but looking forward to joining an "exciting" company. Steer will run retail and institutional money funds at Artemis, where he will also help develop the hedge fund business.

REDROW FOUNDER LOOKS TO REJOIN BOARD

Steve Morgan, the founder and former chairman of housebuilder Redrow (RDW.L), has shocked the market by increasing his shareholding and demanding an executive position on the group's board. Morgan raised his stake from 16.7 percent to 23.46 percent through his investment vehicles Bridgemere Securities and Durcan Investments. His proposal that he should join the board could spark a coup at Redrow, which posted a loss of 46.2 million pounds for the second half of 2008. The group said it was "seeking clarity" on the board changes and other "critical aspects" of Morgan's proposal.

SMALLBONE SUSPENDED

Shares in Smallbone SMAL.L were suspended on Tuesday after the furniture retailer announced that sales had dropped and that funding of 5.9 million pounds last month will not be "sufficient". The group said it would consider a sale of the business as part of its strategic review.

LDV WORKERS TAKE PAY CUT AND SUPPORT MBO

Staff at the LDV van factory facing closure in Birmingham have agreed to take a 10 percent pay cut and to support proposals for a management buyout. Gaz, the parent company of LDV, said last month that without a 30 million pound bridging loan from the government the factory would close down, resulting in 850 job losses. Outgoing Gaz chairman Erik Eberhardson proposed a management buyout to rescue the company. The factory has produced no vehicles since December.

The Guardian

VIRGIN MEGASTORES SHUTDOWN IS LATEST BLOW TO U.S. MUSIC RETAILING

Virgin Megastoes is pulling out of the U.S. market, where it will close down its six outlets over the next few months. The decision represents the latest blow to U.S. music retailing, leaving Wal Mart as the leading CD retailer in America. Virgin's decision was sparked by declining CD falling sales as consumers turned to online retailers, as well as the impact of the economic downturn. The development is also a consequence of the sale of Virgin Megastores to Related Companies and Vornado Realty Trust, which are more interested in the real estate opportunities presented by the sites.

LOW DEMAND HITS DRAX PROFITS

Profits at Drax (DRX.L), the Yorkshire power station, fell by 10 percent last year, partly due to the drop in demand for power. Chief executive Dorothy Thompson said winter demand had fallen five to six percent lower than normal as businesses cut production. Thompson said domestic consumers were also saving energy to reduce costs, further eroding Drax's margins. The group plans to build three biomass plants, as well as increasing the amount of biomass burned at the Drax site. The group aims to cut emissions by almost a fifth by 2011, which would require up to two million tonnes of biomass material annually. However, the group refused to reveal the type of biomass it uses or plans to use in the future.

Prepared for Reuters by Durrants