PRESS DIGEST - British business - July 7

The Times

CHANGES AT CINVEN

Cinven [CINV.UL], the private equity group, has appointed Robin Hall as its new executive chairman. Hall, managing partner of the company since 1998, will be in charge of day-to-day management of the group and its 5.6 billion pounds fourth fund, which closed in mid-2006. Cinven said Hugh Langmuir will be Hall's replacement as managing partner.

PHORM STRANDED AS BT AND CARPHONE PULL PLUG ON ONLINE "SPYING" TECHNOLOGY

Shares in Phorm (PHOR.L) plunged 192.50 pence, or 40 percent, to 282.50 pence on Monday after BT (BT.L) decided to shun its service, which tracks Internet users as they browse and sends specially tailored advertisements to them based on the trail of personal information that they leave behind. Following BT's decision, Charles Dunstone, head of Carphone Warehouse (CPW.L), dealt another to blow to Phorm, saying the group was not willing to join the service on its own.

DELOITTE ON STANDBY AS FINANCE BATTLE CONTINUES AT THE INDEPENDENT

Deloitte has been positioned as standby administrator by Independent News & Media (INME.I) in case its debt-restructuring negotiations come to nothing. The publisher of The Independent newspaper is facing serious financial challenges as it struggles to repay a 200 million euros bond and has had to extend the payment deadline twice to the end of July.

The Daily Telegraph

FRIENDS PROVIDENT PLACES 58.1 MILLION F&C SHARES AS DEMERGER MOVES FORWARD

Friends Provident FP.L, the life assurance group, has placed 58.1 million F&C Asset Management (FCAM.L) shares as part of its demerger from the fund manager. The placing, which means that F&C will become a fully independent listed fund manager for the first time in its 140-year history, represents about 11.7 percent of the group's total share capital. Friends Provident placed the shares, at 62 pence each, on behalf of investors entitled to fewer than 251 shares under the terms of the reshuffle. Shareholders entitled to a bigger amount of shares will receive one F&C share for every 10 Friends shares they hold, with the transfer to be completed by July 17.

TURNOVER FALLS THREE PERCENT AT TELEGRAPH MEDIA GROUP

Telegraph Media Group saw its turnover dropping just three percent to 343.4 million pounds in the year ended December 28 2008, despite the decline in advertising revenues across the media industry. Operating profit, before 47.1 million of exceptional costs, fell 6.7 percent from 34.3 million pounds to 32 million pounds. On a like-for-like comparison, before exceptionals, operating profit was one million pounds ahead of 2007 due to a one-off credit recognised during the year. The publisher of The Daily Telegraph and The Sunday Telegraph also announced that negotiations for the sale of its interest in West Ferry Printers have ended.

INVESTEC GIVES A HIGH FIVE TO FIRMS

Investec Private Bank will launch a savings account that will pay the average of the five highest interest rates on the market. The Business High Five Account will appeal to businesses with more than 50,000 pounds that they are willing to lock away for three months. Moneyfacts, the personal finance information provider, will define the rate of interest, which is currently at 2.44 percent, based on a series of no-notice and longer-term savings accounts.

The Independent

BA CABIN CREWS SQUARE UP FOR A FIGHT OVER JOB CUT PLANS

British Airways (BAY.L) staff rejected on Monday the airline's plans to axe up to 2.000 jobs, as well as impose pay cuts and changed working conditions. The meeting of more than 2,000 BA cabin crew endorsed Unite's alternative proposals, which it says could save 130 million pounds through a limited number of redundancies and a two-year pay freeze. The company, which suffered a 401 million pounds loss in the year to March, a massive plunge from last year's record profits of 922 million pounds, says it is "fighting for survival", hit by high oil prices, weaker sterling and declining passenger numbers.

CATTLES MISSES BOND INTEREST PAYMENT

Cattles (CTT.L), the doorstep lender, announced on Monday it missed a deadline for a 400 million pounds bond interest payment. It said it continues to be in constructive talks with bondholders and lenders. The news comes less than a week after Cattles axed six executives when an inquiry uncovered "the incorrect application of the group's impairment policies". The bonds, due to be paid in 2017, trade at 11.5 pence in the pound.

The Guardian

JJB SPORTS SEES SHARES PLUNGE AS JONES-ASHLEY FEUD RAGES ON

Sportswear chain JJB Sports (JJB.L) saw its shares slumping by more than 25 percent, or 7.75 pence, to 23 pence, on Monday as it confirmed it was raising 50 million pounds in a bid to shore up its finances and further details emerged of a row between chairman Sir David Jones and rival retailer Mike Ashley.

NATIONAL EXPRESS LINE IS AN "ACCIDENT WAITING TO HAPPEN"

National Express (NEX.L) has vigorously denied allegations that some of its trains are in use with faulty brakes after junior transport minister Paul Clark warned of concerns among employees that a "major accident is just around the corner" on the east coast mainline. In a letter following a meeting with a worker of the company who lives in his constituency, the Gillingham MP said he was treating the allegations against the company with the "utmost seriousness". Susan Goldsmith, managing director of the east coast mainline, strongly denied that safety has been compromised. "We have an extremely rigorous maintenance regime, which fully complies with operating and engineering protocols. Safety critical work is given the highest priority. It is undertaken on a regular basis," she said.

SECURITISATION MARKS RENEWED CITY CONFIDENCE

Barclays Capital (BARC.L) and Goldman Sachs have again started using the controversial technique of securitisation to bolster their debt-loaded finances, in a move that indicates that City confidence is returning to pre-credit crunch levels. The BarCap scheme, which involves grouping assets into a secured product that can be sold on to other investors, is designed to cut capital costs at a time when regulators are asking the banks to hold greater levels of capital. A spokesperson for the bank, which has completed a "few, small" securitisation deals, said the practice "is about restructuring portfolios of assets to achieve risk capital and funding efficiency in a transparent and less complex way."

Prepared for Reuters by Durrants