PRESS DIGEST - British business - June 15

The Times

WINKWORTH SEEKS AIM FLOTATION TO FUND EXPANSION

Amid the worst housing market since the Second World War, Winkworth is to launch a flotation on the Alternative Investment Market that can, in turn, provide the finance for an expansion across Britain and into India and the Far East. Being one of the first estate agents in Britain to adopt a franchise model, Winkworth does not own the 85 offices that trade under its brand. In return for eight percent of a franchisee's turnover, the company offers its name and marketing services. Planning a flotation in the autumn, Winkworth founder Simon Agace said falling property prices had instigated a rush of interest from potential buyers in India and the Far East, who view London as a second home for children who are going to school in the capital.

WEST CORNWALL PASTY COMPANY

Reporting a 25 percent surge in sales this year, the West Cornwall Pasty Company revealed plans to open 14 more stores, taking its total to 70. Since being acquired by the private equity group Gresham for 40 million pounds in 2007, the food group has more than doubled in size.

"WOOLWORTHS-STYLE" STORES PLAN

The former Woolworths boss, Sir Geoff Mulcahy, is working with a group planning to establish a 200-strong chain of "Woolworths-style" stores. He was chief executive of Kingfisher when it owned the high street chain from 1982 to 2001. Headed by Tony Page, the former managing director of Woolworths, the group might buy some of the collapsed retailer's vacant stores.

The Daily Telegraph

GALA CORAL BRINGS IN LAZARD TO LOOK AT FUNDING OPTIONS

In order to avoid the risk of breaching its banking covenants if it uses the spare 200 million pounds sitting on its balance sheet, gambling group Gala Coral has asked its adviser Lazard to find up to 200 million pounds to allow it to invest through the recession. Chairman Neil Goulden said the firm's position: "We can't do a rights issue because we are not a public company and the debt markets are closed, so we have asked Lazard to look at whole range of funding options." With Goulden declining to comment on what those options might be, speculation has been mounting in recent weeks that the group's Coral bookmaking chain could be offloaded as part of a restructuring.

The Independent

LOVEFILM TARGETED BY PRIVATE EQUITY BIDDERS

According to a source close to the talks, private equity companies are circling online movie rental group Lovefilm, with bids expected to be valued at around 200 million pounds. At the weekend, Lovefilm confirmed it had received "a number of approaches, which the board is taking seriously, and considering options on behalf of owners and shareholders". Lovefilm, headed by chief executive Simon Calder, did not name the bidders. It has appointed investment bank Jeffries to advise on approaches.

DISCOVER LEISURE SET FOR CRUNCH MEETING

In a last-ditch attempt to avoid falling into administration, caravan company Discover Leisure (DISL.L) will face creditors on Monday with its plan to restructure debts. In May, the Yorkshire-based group said it planned a company voluntary arrangement to tackle its debt. The terms of the CVA would see creditors repaid just over 20 percent of what they're owed over the next five years. Mark Firman, of KPMG which is set to supervise the process if the creditors approve it on Monday, said the transaction would make certain that Discover survived and creditors would receive a higher return than they would via administration. If the CVA is rejected by the creditors, then the group is likely to call in the administrators.

BROUGH DOUBLES STAKE IN LIONTRUST TO NEARLY 30 PERCENT

One of the City's most successful fund managers, Andy Brough, has acquired a near 30 percent stake in the fund manager Liontrust through his Schroders' investment funds. Brough runs more than 1.5 billion pounds worth of assets for Schroders across two retail funds. Seen as the latest sign of growing bullishness in the square mile that the worst of the credit crisis is over, Brough is believed to have almost doubled his stake in the business after buying 15 percent of Liontrust from fund manager Fidelity International last week. "Andy believes fund managers like Liontrust are set to prosper in the coming months with retail investors coming back to the market," said a source close to Schroders.

The Guardian

PHONES 4U FOUNDER PLAYS DOWN TALK OF LDV RESCUE

The philanthropist and former Phones 4U telecoms tycoon John Caudwell has played down reports that he might rescue the Birmingham-based van maker LDV that went into administration this month. While confirming he was considering an investment in the company, Caudwell said his interest was "marginal" and that the likelihood of doing a deal was "probably less than a chance in a million". He said he had requested some preliminary financial information about LDV from the company's administrators PwC. He would study these before deciding whether to proceed.

VIRGIN'S NEW SERVICE AIMS TO CURB ILLEGAL DOWNLOADS

This week, Virgin Media [VMEDL.UL] will launch an online music service aimed at weaning Internet users off illegal file-sharing sites. The new feature is expected to be offered to the cable company's customers for an additional subscription, while users of its super-fast 50 megabyte service should be able to have access to the facility free of charge. According to sources, anyone signing up for the new service would have to accept that access to certain peer-to-peer file sharing sites will be blocked or restricted.

Prepared for Reuters by Durrants