PRESS DIGEST - British business - Oct 5

Mail on Sunday

STAVELEY IS FAVOURITE FOR A DEAL AT TRILLIUM

One of the City's most glamorous dealmakers, Amanda Staveley, has emerged as the frontrunner to acquire property management company Trillium from Land Securities (LAND.L). Backed by cash from Qatar, Staveley has gained exclusive bidding rights for her PCP Capital Partners consortium. In the event of the deal going ahead, PCP will pay about 1.1 billion pounds for the Land Securities-owned Trillium, beating off competition from Telereal, the only other serious contender for the business.

CAMELOT FACES SCRUTINY ON OVERSEAS EXPANSION

After signing its third lottery licence in the UK early next year, National Lottery operator Camelot is considering expanding its business overseas. The group is understood to be keen to build upon 14 years' experience of running the UK lottery to take on overseas markets. In order to address the clause in the lottery licence that prevents foreign operations, the company can activate a dormant subsidiary. However, Camelot's potential overseas expansion would be inspected by the National Lottery Commission, to make certain the UK is not adversely affected by the expansion.

PHOENIX OFFERS PENSION CARROT

Phoenix & London Assurance is writing to more than 50,000 investors this weekend asking whether in exchange for better investment returns they would be prepared to give up reassuring annuity guarantees. Due to the annuities being so expensive, Phoenix parent Pearl has had to adopt a very cautious investment approach. By removing the guarantees, Pearl says it can adopt a less cautious approach in its investment and provide for a wider scope to accumulate larger pension pots for investors.

The Sunday Times

NOBIA IN COST CUT BID

Nobia UK, the parent company of Magnet Kitchens, has told suppliers that they must carry the burden of mounting costs as it becomes the latest retailer to feel the pinch on the high street. Chief Executive Roy Saunders is calling for a five percent cost reduction on all prices from this month, saying: "We have incurred severe price pressure throughout 2008. As a result, we are not in a position to pass on this cost to the consumer. These are extremely challenging times, which require equally challenging solutions in order to sustain our long-term business objectives."

CITY LAUNCH FOR CREDIT CRUNCH ART FUND

David Thomas and Gerard Moxon, the former Lloyds (LLOY.L) bankers, are planning to raise 50 million dollars (28 million pounds) for a fund to invest in art, including works by the Impressionists and Russian masters. "We believe that an allocation to art makes sense in turbulent markets," said Moxon, managing director of Jersey-based Dean Art Investments.

MARKET CRASH ROCKS AVIVA

The insurance giant Aviva (AV.L) is estimated to have suffered a 30 percent wipe-out of its capital surplus as a result of the collapse in global equity markets, after it warned in June that a 20 percent fall in equity markets would reduce its 1.8 billion pound capital buffer by 700 million pounds. Since then the Dow Jones Industrial Average has fallen by about 10 percent, while the FTSE 100 has plunged about 12 percent.

The Sunday Telegraph

DEBT PRESSURES BUILD AT MCCARTHY & STONE

McCarthy & Stone creditors are in a stand-off with shareholders over how one of Britain's largest property companies will be funded in future. Recent plans for debt restructuring put forward by HBOS HBOS.L and separately by debtholders are understood to have failed to gain traction with other investors, who are now bringing in the specialist restructuring firm Houlihan Lokey to advise them. The McCarthy & Stone board is being advised by NM Rothschild.

JJB SPORTS UNDER PRESSURE AS INSURERS PULL PLUG

JJB's (JJB.L) future looks uncertain as credit insurers are refusing to provide cover for suppliers to the troubled retailer, after auditors warned last month of material uncertainties that "cast significant doubt" on its ability to continue as a going concern. The latest blow to chief executive Chris Ronnie came as Coface, the UK's largest credit insurer, made the decision to withdraw cover.

INVESTORS IN NATIONALISED BRADORD & BINGLEY DEMAND BOARD SEAT IN COMPENSATION FIGHT

Dismayed former investors in Bradford & Bingley BB.L are seeking seats on the board of the nationalised bank in an effort to secure what is left of the bank's 1.5 billion pounds in shareholder equity. Institutional investors including Standard Life (SL.L) and Legal & General (LGEN.L) sub-underwrote the buy-to-let lender's 400 million pound rights issue earlier this year. "There could still be money in this for shareholders, if the process is handled properly and surplus capital is returned to shareholders," said one investor.

The Independent on Sunday

LONDON CITY'S INTEREST IN SOUTHEND WANES

London City airport has turned its attention to the imminent sale of Gatwick and cooled its interest in the 100 million pound auction of nearby Southend airport. City is owned by Global Infrastructure Partners -- a joint venture between Credit Suisse (CSGN.VX) and GE Infrastructure -- and the insurance giant AIG (AIG.N); a source close to the pair said: "There's bigger fish to fry. We've not pulled out, but we're not progressing work."

PAIN FOR SAINSBURY'S: SHOPPERS SWITCH TO DISCOUNT RIVALS

Justin King, chief executive of J Sainsbury (SBRY.L), will make a trading statement on Wednesday that is expected to show the extent to which the supermarket has been dented by the consumer slowdown and fierce competition from discount rivals such as Lidl and Aldi. Like-for-like sales growth is expected to be around four percent, but analysts will be on the look out for any sign that it is losing out to rivals. James Collins, analyst at Deutsche Bank, said: "Switching data suggests that Sainsbury's has not fared well in terms of share loss over the summer, losing ground to Tesco (TSCO.L) and Morrisons in particular".

TUBE LINES BOSS IN RUNNING TO BE CROSSRAIL CHAIRMAN

Tube Lines chief executive chairman Terry Morgan has been approached to chair the 16 billion pound Crossrail project, which he is understood to have told friends is a "fantastic opportunity". However, he is understood to favour current executive chairman Doug Oakervee staying on in the short-term as Morgan tries to secure an extra 2.1 billion pounds at Tube Lines for future Underground improvements. The favourite for the Crossrail job is Rob Holden, the chief executive of London & Continental Railways, who would like to be installed as chairman quickly so he can choose a chief executive.

The Observer

SQUEEZE FORCES MFI TO CLOSE STORES

MFI, the beleaguered kitchen supplier, will this week announce the closure of between 90 and 100 stores as the final details of a management buyout are set in place. The closures will be part of a business restructuring overseen by Kroll designed to safeguard at least 2,000 jobs from an existing workforce of 3,100. MFI chief Gary Favell has been in talks with landlords all week to persuade them to sign up with the new MBO entity. They have been asked to agree to a three-month rent holiday until Christmas Eve.

RTL GETS GREEN LIGHT TO PUT IN OFFER FOR ITV

The Luxembourg-based media group RTL has been given the all-clear by its German parent Bertelsmann (BTGGg.F) to bid for ITV (ITV.L). Bertelsmann's owners, the Mohn family, are understood to have set aside a one billion pound war chest for Gerhard Zeiler, RTL's chief, to use for European acquisitions. A move for ITV is sill some way off and dependent on Zeiler securing additional funding for the 1.7 billion pound broadcaster.

THRE PRU POISED TO MOVE ON AIG ASIAN MARKET

Prudential (PRU.L) is targeting U.S. insurance giant AIG's Asian business, which was put up for sale following its bail-out by the government last month. Asia is one of the fastest-growing markets for life and investment products and Prudential is keen to expand its operations in the region. According to research by Cazenove, AIG is the leading foreign player in Asia with the entire business valued at 22 billion dollars.

Prepared for Reuters by Durrants