PRESS DIGEST - British business - July 6

The Times

IS THE WHEEL OF FORTUNE SPINNING BACK IN FAVOUR OF RANK?

Despite a number of hindrances such as the introduction of the UK smoking ban, tax hikes and the overall state of the economy, Ian Burke, the chief executive of Rank Group (RNK.L), remains optimistic about the bingo and casino company's future. Burke has stated his intention to transform provincial casinos and bingo halls into modern leisure complexes, capable of taking on cinemas, pubs and restaurants. The appointment of former boss of Pizza Hut UK, Mark Jones, as Mecca's managing director has been vital in driving current projects at the forefront of Rank's fight back. These projects include a new five million pound Mecca Bingo centre in Beeston and a ninth G Casino in Dundee.

3I AND HIG TO INJECT 17.2 MILLION EUROS IN RESCUE PLAN...

Private equity group 3i (III.L) has agreed a rescue deal for VNU Business Media Europe that will involve HIG Capital taking over half of the Dutch media company. HIG, a distressed debt specialist that already owns some of the company's debt, will join 3i in injecting 17.2 million euros into VNU. As a result of the deal, 3i and HIG will own equal stakes while VNU's lenders will write off some of the company's debts and relax its banking covenants.

SALES UP AS BRIGHTHOUSE DISMISSES CLAIMS IT IS 'CASHING IN'.

BrightHouse, the retailer that specialises in selling electricals and furniture on credit to people on low incomes, has announced a 16.9 per cent rise in annual sales to 170.6 million pounds. Earnings before interest, taxation, depreciation and amortisation jumped 21.5 per cent to 29.4 million pounds. The company, owned by private equity firm Vision Capital, recently ran into criticism for its 29.9 per cent typical APR charges, particularly in light of its perceived customer base: single mothers, people on benefits and those unable to get credit elsewhere. However, chief executive Leo McKee claims the company has an impressive 96 per cent customer satisfaction rate. BrightHouse intends to open a further 20 stores over the next 12 months.

The Daily Telegraph

FORMER M&S CHIEF SLAMS SHAREHOLDERS

Marks & Spencer (MKS.L) former chief executive, Sir Richard Greenbury, has strongly criticised shareholder groups' "vindictive" attitude towards current executive chairman, Sir Stuart Rose. Greenbury claims the shareholders' stance is tantamount to a vendetta, adding that there is no suitable candidate to replace Rose, who should just be left to get on with the job of running the retailer. The comments come ahead of an advisory motion, likely to be backed by a large proportion of shareholders, calling for M&S to appoint a new independent chairman a year early in order to bring the company into line with corporate governance best practice.

BRIXTON BONDHOLDERS UNDER PRESSURE AS SEGRO CLOSES IN.

Property group Segro (SGRO.L) has moved a step closer to acquiring Brixton BXTN.L after the former secured a preliminary agreement to purchase its rival for 107 million pounds in an all-share offer. The news follows the announcement that an alternative proposal put forward by a Brixton bondholder in order to stave off Segro's advances has been rejected. The bondholder had suggested Brixton take on new management and launch a rights issue to manage the company's 862 million pounds of debt, but Brixton's board, shareholders and advisors deemed Segro's offer the best overall solution.

VASANTA IN TALKS TO SECURE NEW FINANCE

Sheffield-based Vasanta confirmed on Sunday that it is close to securing new investment. The faltering economy and the removal of credit insurance to key suppliers have hit the office supplies company which has been locked in talks with potential investors for a number of weeks. Following the release of half-year results in May, Vasanta's owner, the private equity firm Electra Partners, confirmed that it had written off 28 million pounds of its investment in the company. At this stage, it is unclear whether the any new deal will safeguard all of the 1,500 jobs within the company.

The Independent

LASER FIRM CUSTOM VIS IN FOR ROCKY EGM

Confrontation between two opposing factions is likely to be the order of the day at Monday's extraordinary general meeting of Custom Vis in London. The problem facing Custom Vis, which manufactures laser systems used in eye surgery, stems from a disagreement between the current board and a requisition group fronted by former managing director Simon Gordon. Gordon believes that the company is not growing quickly enough and has suggested this is swaying a number of investors into withholding any further capital. However, a recent turnaround of company fortunes - including better-than-expected full-year revenues - mean that calls for the head of chief executive Paul van Saarloos are likely to come to naught.

BGLOBAL POWERS INTO NINE BILLION POUND MARKET

BGlobal (BGBL.L) hopes to benefit from the Department for Energy and Climate Change's drive to see smart meters installed in all homes in order to monitor energy usage. The government body anticipates that the market will be worth nine billion pounds by 2020, although BGlobal, a smart meter manufacturer, has conceded that there is a fundamental flaw in the scheme in that customers can change energy provider. Utility companies are unlikely to pay for meters if there is a chance the customer may switch to another supplier. However, BGlobal appears to have found a solution: selling the meters to specialist asset investors. Last week, the firm secured 15 million pounds from Barclays Asset & Sales Finance.

SOCCER CENTRES LOSE 300,000 POUNDS TO WEATHER

In a trading update issued on Friday, AIM-listed Goals Soccer Centres reported that it has traded in line with company expectations despite a 300,000 pound fall in sales and profits attributed to February's heavy snow. Although the company boasts "all-weather" five-a-side soccer pitches, the dip came as a result of customers' inability to make it to the centres because of the snowy conditions. Goals has stated its intention to open a further six outlets over the coming year.

The Guardian

BT DROPS PHORM TARGETED AD SERVICE AFTER CUSTOMERS CRY FOUL.

Privacy campaigners have scored a victory against BT (BT.L) after it was revealed the telecoms giant has scrapped plans to implement a system that tracks the internet activity of its customers. The Webwise system, developed in conjunction with technology firm Phorm, monitors a user's activity in order to target them with specific advertisements on other pages. The European Commission has launched an investigation after it came to light that BT secretly tested the technology in 2006 and 2007, thus contravening government guidelines on online protection. BT's decision, thought to have been taken in order to conserve resources, has dealt a hefty blow to AIM-listed Phorm.

JJB SPORTS LOOKS AT 'RANGE OF OPTIONS' TO RAISE...

On Sunday, JJB Sports (JJB.L) announced that it is exploring a number of options to generate funds and to combat falling sales. Renegotiating its debt and the sale of non-core assets and new shares are likely to form a large part of JJB's strategy. On rumours that the sports retailer would sell 50 million pound's worth of new stock to investors, JJB stated that it is "reviewing a range of possible options to provide additional capital for the group." Shares closed at 30.7 pence on Friday.

INVESTMENT CHIEF DONATES 500 MILLION POUNDS TO WIFE'S CHARITY

Substantial profits at activist hedge fund TCI in 2007 enabled co-founder Chris Hohn to donate 486 million pounds to the Children's Investment Fund Foundation. The charity, established by Hohn and his wife Jamie, helps children in developing countries such as Africa and Central America. Although TCI's profits in the year to August 2008 leapt 73 per cent to 555 million pounds, the hedge fund has suggested conditions for 2009 will be tougher, particularly following the collapse of credit and equity markets after the failure of Lehman Brothers in September last year.

Prepared for Reuters by Durrants