PRESS DIGEST - British business press - Aug 13
The Times
ADECCO MAINTAINS ITS OBJECTIVE IS FRIENDLY TAKEOVER OF MICHAEL PAGE
Adecco (ADEN.VX) insisted it wanted a friendly takeover of Michael Page (MPI.L), but said that negotiations were at an early stage.
Adecco's chief executive, Dieter Scheiff, said: "Michael Page is really a jewel in the professional business and the management is also great. Our objective is definitely to do a friendly approach."
Analysts believe a bid could reach one billion pounds, but some fear it would be a risky move with uncertainty about the depth and duration of a slowdown in many big economies.
SUPPORT SERVICES
BPP Holdings BPP.L announced a ten per cent increase in first-half pre-tax profits to 9.7 million pounds as revenue rose across its divisions. The professional education and training company said that momentum in business remained strong. The company added that it expected to report a good full-year result despite uncertain economic conditions.
TRANSPORT
Spain's Public Works Ministry has called for information from Ryanair (RYA.I) following warnings from online travel agencies. The agencies claimed the budget airline was threatening the travel arrangements of thousands of passengers who had booked tickets through Rumbo, eDreams and Atrapolo, Spain's leading online bookers.
The Daily Telegraph
TESCO SECURES CASH-AND-CARRY TOEHOLD IN INDIA
Tesco (TSCO.L) is set to launch a two-pronged assault on the Indian retail market in the latest stage of its global expansion drive.
The UK's biggest retailer plans to open a wholesale cash-and-carry chain, providing products to restaurants, small chains and the estimated 15 million "kirana" shacks that dominate India's streets.
Tesco's chief executive, Sir Terry Leahy, said: "This is another exciting development for Tesco. It compliments our entries into China and the United States, giving us access to another of the most important economies in the world."
NEW WOOLWORTHS CHIEF LURED BY EIGHT MILLION POUND PAY PACKAGE
Woolworths WLW.L has appointed Stephen Johnson, the former boss of Focus DIY, as its new chief executive. Mr Johnson will receive a pay package worth 8.1 million pounds over four years.
He will replace Trevor Bish-Jones, who was ousted by chairman Richard North earlier this summer. Mr North said: "At Focus there were too many product lines, there was poor availability, the shops were not fit for purpose, and the pricing had strayed. He will face many of these things here."
ROK TO QUIT COMMERCIAL DEVELOPMENT
Rok will pull out of commercial property development and slash turnover in its construction division by almost 50 per cent as it repositions itself for the downturn in the market.
The company, which describes itself as "the UK's local builder" unveiled interim results that showed a 22 per cent increase in pre-tax profit to 11.3 million pounds.
Garvis Snook, chief executive, said: "Fundamentally, the only reason we were involved in commercial property development was because we had free cash flow to invest in the market." The company's shares have soared nearly 50 per cent over the past month, and closed seven per cent down on Tuesday to reach 98 pence.
