PRESS DIGEST - British business press - Aug 19
The Times
VODAFONE TO INCREASE ITS CALL CHARGES
Vodafone (VOD.L) is to increase its minimum call charges by 25 percent from September 1, with the cost of calls that exceed customers' monthly bundle going up to 15 pence a minute. There will also be a 25 percent increase in the cost of calls to premium-rate numbers. The move follows similar price hikes by rivals T-Mobile and O2. A spokesman for Vodafone said the increases were the first for two years.
B&B CHIEF SHRUGS OFF CAPITAL-RAISING 'FLOP' AND SETS SIGHTS ON FLAWED MORTGAGE DEAL
Bradford & Bingley BB.L formally confirmed Richard Pym in the job of chief executive on Monday. Pym, who is on a three million pound package, immediately vowed to tackle an adverse contract obliging the bank to buy flawed mortgages from GMAC, the American finance company. The pledge came as B&B's 455 million pound capital-raising - with shareholders taking up their rights in respect of only 27.8 percent of the new shares - was labelled a partial flop. Pym added there was no guarantee he could extricate the bank from the GMAC deal.
DEBT REFINANCING OF 13.3 BILLION POUNDS CALMS FEARS OVER BAA
Airports operator BAA has completed a 13.3 billion pounds refinancing of its debt, settling fears that it could run out of cash this year and allowing BAA to reduce its interest payments and allocate funding to investment projects at its airports. The company has allocated 2.75 billion pounds of the refinancing package for improvements at Gatwick, Heathrow and Stansted, with a further 255 million pounds to be spent on upgrading BAA's airports at Glasgow, Edinburgh, Aberdeen and Southampton.
The Daily Telegraph
WOOLIES' PENSION DEFICIT COULD COUNTER BREAK-UP OF GROUP
A triennial actuarial valuation of the pension scheme of struggling retailer Woolworths is expected within weeks to reveal a deficit up from 48.2 million pounds to almost 100 million pounds. On Sunday, the group rejected a 50 million pound takeover offer from a consortium headed by Iceland boss Malcolm Walker, which would have seen the group broken up, with the board retaining all pension liabilities. The company termed Walker's proposal for the liabilities 'unacceptable', and the increased deficit is likely to strengthen the board's resistance to any break-up.
HELPHIRE HUNTS FOR EMAILER
Helphire (HHR.L), the troubled car hire company, has taken court action in an attempt to trace the author of a malicious email sent to its clients and business partners. The email, sent from a hastily registered gmail account and believed to have been written by a former employee, makes numerous unfounded allegations about the company and its staff. Google handed over details of the account after Helphire acquired a court order. Mark Jackson, chief executive, said the company was hopeful of tracking down the author.
WH IRELAND HIT BY 25PC TURNOVER FALL
WH Ireland, the stockbroker group, reported a 25 percent fall in turnover and revaluation of investments in the first half, blaming turbulent financial markets. Revenues fell from 21.5 million pounds to 16.2 million pounds, the group swinging from a 3.81 million pound profit to a 685,000 pound pre-tax loss in the six months to the end of May. The dividend, payable on October 1, was slashed from two pence to a penny.
The Independent
SYNCHRONICA SEEKS TO FIND EASTERN AXIS
Synchronica, the mobile technology group, is buying the operating subsidiary of its rival Axis Mobile. Carsten Brinkschulte, chief executive, said the acquisition - funded by the issue of 85 million new shares - would take the group into new markets in Russia and Eastern Europe. Sharon David, chief executive at Axis Mobile, said the deal was in the best interest of shareholders. Synchronica also said it had conditionally raised 5.1 million pounds in two placings at three pence a share.
PANMURE GORDON LINKS TO EGYPTIAN BANK
The City stockbroker Panmure Gordon has sold a 9.97 percent stake to the Egyptian investment bank EFG-Hermes for 3.2 million pounds. Shares in Panmure rose by 7.5 percent to 50 pence on the news. Tony Caplin, Panmure's chairman, said: "The markets we operate in are becoming more international and the opportunities available through a business relationship with EFG-Hermes are compelling." Hasan Heikal, boss at EFG-Hermes, said he saw "an opportunity to develop a partnership that can drive very real benefits for our respective clients".
NATIONWIDE SET TO GAIN A FOOTHOLD IN THE EUROZONE WITH EXPANSION INTO IRELAND
Nationwide is planning to expand into Ireland next year, giving the UK's largest building society a foothold in the eurozone and access to European funds. A spokesman described the building society's plan as a "prudent strategic move . to further diversify its geographical operations and funding opportunities". Nationwide will make further details of the expansion available following formal applications to the UK and Irish financial regulators.
