PRESS DIGEST - British business press - Aug 16

The Times

MICHAEL PAGE REBUFF

Recruitment specialist Michael Page (MPI.L) has ceased talks with Adecco (ADEN.VX), the Swiss recruiter, over a 1.3 billion pound bid.

Michael Page, the second-biggest recruitment agency in Britain, revealed that two bids from Adecco undervalued the company. Adecco insisted there was scope for a combination with Michael Page, which would benefit both companies.

The company also said it thought it was important to keep the senior management of Michael Page in the event of a successful bid.

STANDARD LIFE ENDOWMENT HOLDERS FACE HOME LOAN SHORTFALL.

Standard Life (SL.L) announced this week that it has cut payouts for 800,000 mortgage and savings endowment policyholders by as much as nine per cent.

Poor performance of the Scottish insurer's 41.2 billion pounds with-profits fund over the past year means that more than half of its 62,700 customers with endowment mortgages that mature this year will not have enough money to cover their home loan at the end of its term.

In the years ahead, the number of homeowners who still face shortfalls when their policy matures is set to increase to 87 per cent from 55 per cent of all Standard Life endowment holders.

TELECOMS

Vodafone (VOD.L), the world's largest mobile telecoms group by sales, is in negotiations with Danish telecoms operator TDC (TDC.CO) to buy part of its stake in Polkomtel [PTL.UL], the Polish mobile carrier.

Vodafone already owns 19.6 per cent of Polkomtel, but aims to buy a further 4.8 per cent from TDC. The move is part of its strategy to push into emerging markets to offset decreasing growth in more mature European companies.