PRESS DIGEST - British business - Aug 7

The Times

WHITBREAD EXPLOITS OFFICE SITES TO BUILD BUDGET HOTELS

The leisure group Whitbread (WTB.L) will announce plans on Thursday for a 100 million pound investment to develop nine new Premier Inns. Mark Anderson, property director, said the decline of the residential and commercial property markets meant a host of sites had become available that would not normally be for hotel use. "About a quarter of all opportunities put to us are former office or residential developments," he said.

ASIAN HEDGING STRATEGY PILES UP LOSS AT OLD MUTUAL

The London-listed life assurer Old Mutual (OML.L) is nursing losses of 107 million pounds after failing to hedge properly against falls in Asian stock markets. The company said it could lose a further 10 million to 15 million pounds in the second half if markets stay at present levels. A combination of huge volatility in Asian markets and flawed product design were to blame, said Jim Sutcliffe, the chief executive. The shares fell 12.1 pence to 94.3 pence.

BID RUMOUR OVER WOOLWORTHS