PRESS DIGEST - British business press - Aug 20
The Times
M&S STAFF MUTINY OVER CUTS TO REDUNDANCY PLAN
Employees at Marks & Spencer (MKS.L) are furious after the company announced proposals to cut redundancy benefits by up to 25 percent, a move which has convinced many that job cuts are on the way. The retailer wants to cut the maximum payout that staff can receive in relation to length of service from 70 weeks to 52 weeks. Matthew McEachran, a retail analyst at Kaupthing, said: "While cost-cutting is a necessary evil as the downturn sharpens, this action is likely to raise concerns that trading has deteriorated further."
LAUNCH OF SATELLITE PROPELS INMARSAT OUT OF THE GLOOM
Shares in Inmarsat (ISA.L), the satellite communications company, rose 10.25 pence to 498.25 pence on Tuesday after it announced the successful launch of its third Inmarsat-4 satellite. The six-tonne satellite, launched from Kazakhstan on Tuesday morning, will in combination with the company's two other orbiting satellites give Inmarsat the only fully funded next-generation network for mobile satellite services. The launch concludes a decade of development and a 750 million pound investment.
HURDLES PILE UP FOR INNOVATION
Shares in Innovation Group tumbled more than 20 percent after the business process outsourcing group lowered its forecast for annual profits by two million pounds, blaming an aborted acquisition and costs associated with the integration of Nobilas, its accident claims business. Innovation also said it needed to conclude a number of commercial arrangements if it was to meet its own expectations for the full year. The shares fell 4.25 pence to 16.25 pence.
The Daily Telegraph
SFO MAY LAUNCH SILVERJET PROBE AFTER COMPLAINT
The Serious Fraud Office is considering launching an investigation into the collapse of the business-class airline Silverjet, which went into administration weeks after announcing it had arranged a loan of up to 100 million dollars from the Abu Dhabi-based investment house Viceroy Holdings. Silverjet was forced to ground planes when the first instalment of five million dollars failed to materialise. Mark Fry, of administrator Begbies Traynor, said it "would co-operate fully with any investigation".
WATERSTONE'S DEAL
The book retailer Waterstone's has signed a deal with Borders to take over the leases on eight of its Books Etc stores in the London region. Waterstone's, which will rebrand the stores in time for the Christmas period, has paid nothing for the sites. The locations of the stores, which it is understood were likely to be closed down, include Canary Wharf, Finchley, Wandsworth and Fleet Street.
FALLING PRICES FORCE XSTRATA TO SUSPEND NICKEL OPERATION
The diversified miner Xstrata (XTA.L) said on Tuesday it was shutting down a nickel mine in the Dominican Republic as the price of the metal continued to tumble. The closure at its Falcondo operation would last four months - assuming market conditions improve - and be used to carry out maintenance work, the company said. "The suspension will also enable the acceleration of feasibility studies into the energy conversion project, to switch the operation's power source from oil to coal," Xstrata said.
